Bouwfonds European Residential - Catella Real Estate AG
Bouwfonds European Residential - Catella Real Estate AG
Bouwfonds European Residential - Catella Real Estate AG
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<strong>Bouwfonds</strong> <strong>European</strong> <strong>Residential</strong><br />
Open-Ended <strong>Real</strong> <strong>Estate</strong> Fund<br />
Annual Report as at 30 April 2009
Key Figures at a Glance<br />
Fund assets As at 30 April 2009 As at 30 April 2008<br />
Fund assets – net 97,717 48,900 € thousand<br />
Fund assets – gross (net fund assets plus loans) 97,717 48,900 € thousand<br />
Net inflow of funds 1 45,926 48,540 € thousand<br />
Leverage ratio 2 0.0 0.0 %<br />
<strong>Real</strong> estate assets<br />
Total real estate assets (aggregate market values) 83,669 30,230 € thousand<br />
of which directly held 80,410 30,230 € thousand<br />
of which held via real estate companies 3,259 0 € thousand<br />
Total Fund properties 6 2<br />
of which held via real estate companies 1 0<br />
of which under construction/renovation 1 0<br />
Changes to the real estate portfolio<br />
Property purchases 4 2<br />
Property sales 0 0<br />
Letting rate 3 81.0 64.1 %<br />
Liquidity<br />
Gross liquidity 14,584 19,606 € thousand<br />
Committed funds 4 10,340 19,265 € thousand<br />
Net liquidity 5 4,243 341 € thousand<br />
Liquidity ratio 6 4.342 0.697 %<br />
Fund performance (BVI return) 7<br />
Financial year (1 May 2008 to 30 April 2009) 4.5 0.8 %<br />
since launch 8 5.3 0.8 %<br />
Units<br />
Units in circulation 9,308,147 4,851,244 Units<br />
Redemption price/unit value 10.50 10.08 €<br />
Issuing price 9 11.03 10.58 €<br />
Distribution<br />
Distribution date 3 Aug. 2009 1 Aug. 2008<br />
Distribution per unit 0.37 0.03 €<br />
Total expense ratio 0.70 n/a 10 %<br />
Launch date: 27 December 2007<br />
ISIN: DE000A0M98N2<br />
WKN: A0M98N<br />
Internet: www.catella-realestate.de<br />
1 In the period under review from 1 May 2008 to 30 April 2009, in the previous year from 27 December 2007 to 30 April 2008.<br />
2 Total loans as a proportion of the aggregate market values of all directly and indirectly held properties.<br />
3 Based on the annual estimated gross rental as at the reporting date.<br />
4 Committed funds: funds earmarked for the next distribution, funds reserved for purchases and construction projects, real estate management<br />
costs, liabilities from real estate purchases and construction projects, other liabilities and current provisions.<br />
5 Gross liquidity less committed funds.<br />
6 The ratio of net liquidity to net fund assets.<br />
7 Calculated according to the documentation from the Bundesverband Investment und Asset Management e.V. (BVI). Calculation based on the<br />
investment, final valuation and reinvestment of the distribution at the unit value (no charge for reinvestment). The Investment Fund’s historical<br />
performance is not necessarily indicative of future performance.<br />
8 Information as at 30 April 2009 for the period from 27 December 2007 to 30 April 2009, information as at 30 April 2008 for the period from<br />
27 December 2007 to 30 April 2008.<br />
9 Since no front-end charge is levied at the present time, the issue price corresponds to the unit value as at the reporting date.<br />
10 This was not calculated as the ratio is not meaningful in the Fund’s first year.<br />
5
Table of Contents<br />
05 Key Figures at a Glance<br />
08 Fund Management Report<br />
14 Overview – Returns, Valuation and Leasing<br />
16 Development of the Fund (Multi-year Review)<br />
17 Development of Returns (Multi-year Review)<br />
20 Development of the Fund<br />
22 Statement of Assets and Liabilities as at 30 April 2009<br />
26 Schedule of Properties<br />
28 Overview – Market Values and Rents<br />
30 Schedule of <strong>Real</strong> <strong>Estate</strong> Purchases and Sales<br />
31 Liquid Assets<br />
32 Statement of Income and Expenditure<br />
34 Calculation of the Distribution<br />
36 Tax information<br />
44 Committees<br />
7
Fund Management Report<br />
<strong>Real</strong> estate investment markets<br />
2008 proved to be extremely difficult for international real<br />
estate markets, as for many other sectors. For example, the<br />
INREV “All Property <strong>European</strong> Total Return Index” recorded<br />
a drop of 26.8% in 2008, which was mainly due to a 30.3%<br />
depreciation in property values. However, total returns in the<br />
BVI index averaged 4.4% in Germany. Here, the financial<br />
crisis made itself felt in a different way: in the temporary<br />
closing of 12 open-ended real estate funds.<br />
One positive result of the financial crisis is that professional<br />
investors are increasingly seeing residential property as an<br />
independent asset class. According to INREV’s 2009<br />
“Investment Intention Survey”, German residential properties<br />
are the number one investment target for institutional<br />
investors in Europe. This is reflected in increasing competition<br />
among providers of comparable products. However,<br />
<strong>Bouwfonds</strong> <strong>European</strong> <strong>Residential</strong> (BER) is currently the only<br />
fund in its segment that systematically ensures risk diversification<br />
by investing throughout Europe.<br />
<strong>Real</strong> estate markets<br />
In 2008, our target countries generated average economic<br />
growth of around 1.3% (Germany), 2.1% (Netherlands),<br />
0.7% (France) and 1.1% (Belgium). 1<br />
The trend in the number of households is of particular strategic<br />
interest as a long-term indicator. The tendency towards a<br />
rising number of households in BER’s target countries is<br />
having a positive effect on returns. In 2008, prices for residential<br />
real estate in our target countries performed as<br />
follows:<br />
France: At 0.6%, the rise in purchase prices for existing residential<br />
real estate of was restrained. However, considerable<br />
regional differences were recorded (e.g. Grenoble –4.7%<br />
versus Paris +8.7%).<br />
Rental price trends for French residential properties also<br />
varied in line with this, with the slight overall increase of<br />
1.4% being spread unevenly across the regions. Whereas<br />
Grenoble, Montpellier and Paris, for example, saw increases<br />
of between 2.3% and 4.3%, rents in Lyon, Marseille and<br />
Toulouse stagnated. 2<br />
8<br />
Germany: A slight decline in prices – but still within the<br />
bounds of normal price fluctuations – was felt across<br />
Germany. Prices for existing real estate fell on average by<br />
between 0.5% and 1.0%, while prices for new builds in the<br />
residential segment were flat. However, significant regional<br />
differences are to be seen in both areas, with price increases<br />
of up to 8.0% in large cities.<br />
As a whole, rental prices across Germany remained relatively<br />
stable. Metropolitan areas in particular saw increases of<br />
2.0% to 4.0% for new lettings. In contrast, structurally weak<br />
rural regions experienced increasing vacancies and a slight<br />
drop in rental prices. 3<br />
Netherlands: Prices for residential properties remained<br />
unchanged between 2007 and 2008. The slight price increases<br />
seen in the summer levelled off again at the end of the year. 4<br />
The rental market recorded an annual average rise of 1.9%. 5<br />
Belgium: The prices for residential real estate in Belgium<br />
rose once again. Single-family homes saw a price increase of<br />
5.2% and apartment houses of 4.0%. In 2008, the rent index<br />
was 4.0% higher on average than the previous year. The last<br />
ten years saw average annual growth of 1.7%.<br />
<strong>Bouwfonds</strong> <strong>European</strong> <strong>Residential</strong>’s strategy<br />
The Fund is aiming for the following allocation during the<br />
first three years:<br />
• Germany (30%-50%)<br />
• France (30%-50%)<br />
• Benelux (10%-40%)<br />
In addition, the Fund can invest up to 10% of fund assets in<br />
other countries in the <strong>European</strong> Economic Area and<br />
Switzerland. However, since the Fund follows a regional<br />
strategy that involves making focused investments in regions<br />
with above-average growth, it is equally important to<br />
consider the regional allocation:<br />
• Service regions (40%-60%)<br />
• High-tech regions (20%-30%)<br />
• Financial services regions (20%-30%)<br />
• “Government and administrative locations” (10%-20%)<br />
1 Source: Eurostat<br />
2 Sources: Callon, CNAB, OLAP<br />
3 Source: IVD, Wohnpreisspiegel 2008/2009<br />
4 Source: Nederlandse Vereniging van Makelaars o.g. en vastgoeddeskundigen NVM, NVM-cijfers van het 1 kwartaal 2009 voor heel Nederland<br />
5 Source: Centraal Bureau voor de Statistiek, Consumentenprijzen; de gemiddelde verhoging woninghuur in Nederland
In terms of product strategy, the Fund invests in apartments<br />
(80%-90%) and in niche markets such as senior citizens’<br />
apartments, serviced apartments and student accommodation<br />
(10%-20%). In order to offer investors additional yield<br />
potential, the Fund permits privatisations, although these are<br />
restricted to 20%. Investments in development projects of up<br />
to 20% are also permitted.<br />
The financial crisis has created new investment opportunities.<br />
In Sweden and the United Kingdom, for example, residential<br />
real estate’s risk/reward profile has improved substantially.<br />
In some regions, these markets had experienced pronounced<br />
price imbalances. The mark-to-market valuations used in<br />
these countries are currently having a positive effect on price<br />
levels. The Fund’s management expects excellent investment<br />
opportunities in the Fund’s target countries, although the<br />
markets there show fewer signs of volatility and hence no<br />
significant declines in prices are being seen. As a result, the<br />
Fund’s management will reassess its investment strategy as<br />
of the next semi-annual report. This applies in particular to<br />
the 10% quota for properties located outside the target countries<br />
of Germany, France and the Benelux countries, which<br />
the Fund’s management will make use of if attractive opportunities<br />
arise.<br />
Developments in the financial year<br />
The Fund was unable to achieve the target volume it had<br />
originally aimed for within the allocated time frame. Despite<br />
the significant advantages offered by the residential real<br />
estate asset class, the financial crisis prevented a large number<br />
of institutional investors from making new investment<br />
decisions.<br />
Overall, net inflows of €23 million were received from outside<br />
investors who are not associated with <strong>Bouwfonds</strong>’ asset<br />
managers and joint venture partners bringing assets under<br />
management to approximately €100 million.<br />
At the end of the financial year, the Fund’s management<br />
negotiated a loan facility of approximately €20 million. This<br />
has enabled the Fund to profit from the current extremely<br />
attractive financing terms and the banks’ interest in financing<br />
a core residential real estate fund.<br />
1 According to the BVI method<br />
Performance and liquidity<br />
Against the backdrop of fundamentally difficult conditions<br />
in the <strong>European</strong> real estate markets, the BER open-ended real<br />
estate fund achieved a total return of 4.5% in its first year of<br />
operation, 1 slightly above the sector average of 4.4%.<br />
Nevertheless, the original target performance of 5-6%<br />
(according to the BVI method) was not achieved. This is<br />
mainly due to the letting rate for the new building in Markt<br />
Schwaben, which is significantly off target. <strong>Bouwfonds</strong> has<br />
successfully implemented the concept of constructing new<br />
rental homes for young families with children in many<br />
<strong>European</strong> markets, including on a significant scale in<br />
Germany. As a result, the Fund’s management believes that<br />
it should be possible to increase the letting rate significantly<br />
in the course of the financial year. (Read more about Markt<br />
Schwaben in the section entitled “Developments at existing<br />
properties”).<br />
Based on its assessment of the current market environment<br />
in the medium term, the Fund’s management believes that<br />
the target return can be achieved. Additional arguments<br />
supporting this conclusion are the increased marketing<br />
measures being undertaken in Markt Schwaben, debt<br />
financing offering positive leverage and additional acquisitions.<br />
Moreover, since the appraisers classed our properties’ risk<br />
premiums and initial returns as stable, the Fund has not<br />
recorded any losses in value. This goes to show that BER is<br />
living up to its claim to be a core product by remaining stable<br />
during market downturns. This is due to the low correlation<br />
of residential properties as an asset class with other assets<br />
and inherent low volatility, as well as to the systematic selection<br />
of the Fund’s assets.<br />
New acquisitions<br />
Markt Schwaben:<br />
Markt Schwaben (11,000 residents) is a typical commuter<br />
town in the Munich area with excellent transport links. The<br />
municipality boasts above-average economic output and one<br />
of the lowest unemployment rates in Germany. In the last<br />
decade, Markt Schwaben’s population has grown by around<br />
14%. The market for residential real estate is strongly influenced<br />
by the shortage of living space in Munich. Strong<br />
9
Fund Management Report<br />
demand, in particular for single- and two-family houses, is<br />
reflected in high rental and purchase prices. The development<br />
project in Markt Schwaben, comprising 48 terraced<br />
houses with full cellars, has total rental space of 5,470 m 2<br />
and 48 underground parking spaces.<br />
Berlin:<br />
The federal capital with its around 3.4 million inhabitants is<br />
the most populous city in Germany and is also the centre of<br />
the Berlin-Brandenburg metropolitan area. This makes it one<br />
of Europe’s most important political, cultural and scientific<br />
centres. The service sector dominates Berlin’s economy,<br />
accounting for almost 83% of the workforce. Of the major<br />
German cities, only Frankfurt has a higher service sector<br />
ratio. As an important agglomeration area, Berlin will<br />
continue to profit from future demographic change. Not only<br />
will it experience relatively stable population levels, but it will<br />
also benefit from an increase in the number of households.<br />
Steglitz-Zehlendorf is one of Berlin’s most expensive<br />
addresses in which to rent property, surpassed only by<br />
Charlottenburg-Wilmersdorf. This district, with its 288,000<br />
or so residents, has an excellent social structure. Its appeal is<br />
attributable in part to the extensive range of leisure facilities<br />
and green areas, as well as a very convenient transport infrastructure.<br />
The property, which is situated in a quiet location<br />
with substantial green areas, consists of a 4- to 12-storey<br />
apartment complex built between 1970 and 1971. Previously<br />
in private hands, the property was always well cared for;<br />
nevertheless, we are planning to make further energy<br />
management-related improvements over the coming years.<br />
The complex comprises a total of 235 apartments with<br />
aggregate living space of 16,440 m2. Access is provided<br />
through ten entrances. There is also an underground garage<br />
with 136 parking spaces as well as 84 outside parking spaces.<br />
The strategy is to maintain or further reduce the low vacancy<br />
rate and to let the property in the long term.<br />
Hamburg:<br />
Hamburg, a federal city state and Germany’s second-largest<br />
city (1.78 million inhabitants), is North Germany’s commercial<br />
centre and hence one of Northern Europe’s most important<br />
hubs. The city and metropolitan area of the same name<br />
have undergone a structural change to become a service,<br />
trade and media location.<br />
Jobs in the maritime industries have been replaced by positions<br />
in the tertiary and quaternary sector, even though the<br />
Port of Hamburg remains one of Europe’s most important<br />
10<br />
logistics centres. Nonetheless, large sections of the port are<br />
experiencing urban renewal, being repurposed for office and<br />
retail use as well as seeing the development of new urban<br />
districts. The district of Harburg, which is located on the<br />
southern banks of the River Elbe, is well integrated with<br />
Hamburg’s transport infrastructure. The area, which mainly<br />
focuses on providing industrial added value, is home to<br />
around 200,000 people. The Hamburg-Harburg property has<br />
nine four- and nine-storey apartment blocks built between<br />
1960 and 1962 on land encumbered with heritable building<br />
rights. Extensively refurbished and now offering state-of-theart<br />
energy management, among other things, these buildings<br />
contain a total of 245 apartments with aggregate living<br />
space of 16,605 m 2 that can be accessed through 22<br />
entrances. The complex also has 41 outside parking spaces.<br />
At the time of notarisation, around 2.2% of the apartments<br />
were vacant.<br />
The strategy for the property is to sign long-term letting<br />
agreements, allowing the Fund to benefit optimally from the<br />
positive developments on the Hamburg real estate market.<br />
Ville-la-Grand, France:<br />
BER made its first acquisition outside Germany in February<br />
2009. The complex in question is a new development in<br />
Ville-la-Grand, located approximately 10 km from Geneva’s<br />
city centre. The area is home to a large number of commuters<br />
who live in France but work in Geneva, due to the significantly<br />
higher salaries in Switzerland. Demand for housing<br />
on the French side is high as rents and purchase prices here<br />
are up to 20% lower than in Switzerland. The development<br />
project, which will be completed in 2010, comprises 45<br />
residential units with an aggregate of 2,740 m2 of living<br />
space and 58 parking spaces. Construction work is progressing<br />
according to plan.<br />
Developments at existing properties<br />
Technical, portfolio and Fund management have evaluated<br />
the return for the period under review at property and portfolio<br />
level and have established the strategies and the related<br />
technical and commercial budgets for financial year<br />
2009/2010. The original property strategies have been<br />
retained for the properties in Frankfurt, Hamburg-Harburg,<br />
Berlin-Steglitz and Kiel. In these cases, the Fund is continuing<br />
to aim for full occupancy, which will generate stable cash<br />
flows. The investment in new builds and modernised housing<br />
stocks significantly reduces maintenance costs. The
modernisation measures that had already been planned for<br />
Berlin-Steglitz when it was purchased will lead to adequate<br />
rent increases in the medium term.<br />
Awareness of the Markt Schwaben property – and hence its<br />
rental appeal – are to be raised using an original promotion<br />
campaign in collaboration with a well-known Munich radio<br />
station. This marketing concept has proven to be very<br />
successful for similar property types, including some in the<br />
same region. The Fund’s management is convinced that this<br />
campaign (launched on 15 June 2009) will significantly<br />
increase letting rates by raising awareness of the complex on<br />
the one hand and putting across the quality of living that our<br />
houses offer on the other.<br />
Vacancies<br />
Due to the ongoing leasing phase in Markt Schwaben, Fund<br />
vacancies currently amount to some 20%.<br />
The remaining properties have average vacancy rates of<br />
2-4%, which are due to ongoing changes of tenants.<br />
Human resources and organisation<br />
<strong>Bouwfonds</strong> <strong>Real</strong> <strong>Estate</strong> Investment Management is responsible<br />
for portfolio and asset management under the overall<br />
aegis of <strong>Catella</strong> <strong>Real</strong> <strong>Estate</strong> <strong>AG</strong> Kapitalanlagegesellschaft.<br />
<strong>Bouwfonds</strong> is a subsidiary of Rabobank, which has a AAA<br />
rating, and employees some 2,000 people. Within <strong>Bouwfonds</strong><br />
<strong>Real</strong> <strong>Estate</strong> Investment Management, this task is performed<br />
by a portfolio manager and local transaction and asset<br />
managers.<br />
<strong>Bouwfonds</strong> Asset Management now trades as <strong>Bouwfonds</strong><br />
<strong>Real</strong> <strong>Estate</strong> Investment Management.<br />
<strong>Catella</strong> <strong>Real</strong> <strong>Estate</strong> <strong>AG</strong> Kapitalanlagegesellschaft is a steadily<br />
growing regulated company that currently has 20 employees.<br />
Outlook<br />
The Fund’s management expects both the direct return and<br />
the total return to rise due to a clear decline in vacancies in<br />
Markt Schwaben. In addition, the use of attractively priced<br />
financing should support the positive leverage of total return<br />
by providing positive leverage. Further acquisitions abroad<br />
are designed to underline our international orientation by<br />
diversifying our risk. Although the effects of the financial<br />
crisis may endanger these aims, we will do everything in our<br />
power to avoid any problems that emerge with the necessary<br />
flexibility.<br />
11
12<br />
Fund Management Report<br />
Geographical breakdown of Fund properties<br />
(basis: market value)<br />
Frankfurt area 31.6%<br />
Hamburg area 23.6%<br />
Munich area 18.2%<br />
Berlin area 17.9%<br />
Other cities/regions<br />
in Germany 4.8%<br />
France 3.9%<br />
Type of use of Fund properties<br />
<strong>Residential</strong> 91.2%<br />
Parking 4.4%<br />
Retail/Catering 3.3%<br />
Office 0.7%<br />
Other 0.4%<br />
Industry<br />
(Warehouse/Facilities)<br />
0.0%<br />
1<br />
(calculated on the basis of the estimated net rental income)<br />
Size classification of Fund properties<br />
up to € 10 m 5.0%<br />
€ 10 m ≤ € 25 m 62.1 %<br />
€ 25 m ≤ € 50 m 32.9 %<br />
1<br />
(basis: market value)<br />
Economic age of Fund properties 1<br />
(based on the remaining useful lives quoted in the appraisal)<br />
≤ 15 years 51.9 %<br />
5 ≤ 10 years 5.0 %<br />
more than 20 years 43.1 %<br />
Investor structure<br />
Others 74.0 %<br />
Pension funds 10.3 %<br />
Insurers 7.6%<br />
Funds of funds 6.0%<br />
Private banks 2.1%<br />
2<br />
(basis: number of units)<br />
1 Not including properties under construction.<br />
2 No guarantee can be given for the accuracy of the investor information.
Fund Management Report<br />
Overview of loans<br />
There were no loans at the reporting date.<br />
Overview of currency risk<br />
There was no currency risk at the reporting date.<br />
Overview of interest rate risk<br />
There was no interest rate risk at the reporting date.<br />
Voltastraße, Frankfurt/Main<br />
13
Overview – Returns, Valuation and Leasing<br />
Returns<br />
14<br />
Return ratios in % 1<br />
(of average Fund assets)<br />
I. Properties<br />
DE<br />
direct<br />
Other<br />
countries<br />
direct<br />
Total<br />
direct<br />
DE<br />
indirect<br />
Other<br />
countries<br />
indirect 2<br />
Total<br />
indirect<br />
Total<br />
direct and<br />
indirect<br />
Gross income 3 5.3 0.0 5.3 0.0 0.0 0.0 5.3<br />
Management expenses 3 - 0.6 0.0 - 0.6 0.0 0.0 0.0 - 0.7<br />
Net income 3 4.7 0.0 4.7 0.0 0.0 0.0 4.6<br />
Changes in value 3 1.3 0.0 1.3 0.0 0.0 0.0 1.3<br />
Income tax incurred outside Germany 3 0.0 0.0 0.0 0.0 2.1 2.1 0.0<br />
Deferred taxes incurred outside Germany 3 0.0 0.0 0.0 0.0 0.0 0.0 0.0<br />
Income before loan expenses 3 6.0 0.0 6.0 0.0 2.1 2.1 5.9<br />
Income after loan expenses in<br />
currency 4 5.8 0.0 5.8 0.0 2.1 2.1 5.7<br />
Exchange rate changes 4 0.0 0.0 0.0 0.0 0.0 0.0 0.0<br />
Total income in Fund currency 4 5.8 0.0 5.8 0.0 2.1 2.1 5.7<br />
II. Liquidity 5 3.7 0.0 3.7 0.0 0.0 0.0 3.7<br />
III. Total Fund income<br />
before Fund expenses 6 5.1 0.0 5.1 0.0 2.1 2.1 5.1<br />
Total Fund income after Fund expenses (BVI method) 4.5<br />
Capital information<br />
(average figures in € thousand) 7<br />
DE<br />
direct<br />
Other<br />
countries<br />
direct<br />
Total<br />
direct<br />
DE<br />
indirect<br />
Other<br />
countries<br />
indirect<br />
Total<br />
indirect<br />
Total<br />
direct and<br />
indirect<br />
Directly held properties 50,856 0 50,856 0 647 647 51,503<br />
Properties held via<br />
equity interests<br />
0 0 0 0 0 0 0<br />
Properties, total 50,856 0 50,856 0 647 647 51,503<br />
Liquidity 15,961<br />
Loan volume 0<br />
Fund assets (net) 70,198<br />
1 The Investment Fund’s historical performance is not necessarily indicative of future performance.<br />
2 Calculated using the average values from 28 February 2009 to 30 April 2009; property under construction.<br />
3 Calculated using the average directly or indirectly held real estate assets in the respective country in the period from 30 April 2008 to 30 April 2009.<br />
4 Calculated using the Fund’s average directly or indirectly held equity-financed real estate assets in the period from 30 April 2008 to 30 April 2009.<br />
5 Calculated using the Fund’s average liquidity portfolio in the period from 30 April 2008 to 30 April 2009.<br />
6 Calculated using the Fund’s average liquidity portfolio and equity-financed real estate assets in the period from 30 April 2008 to 30 April 2009.<br />
7 The average figures are calculated on the basis of 13 end-of-month values (30 April 2008 to 30 April 2009).
Valuation<br />
Information on changes in value<br />
(at the reporting date in € thousand)<br />
DE<br />
direct<br />
Other<br />
countries<br />
direct<br />
Total<br />
direct<br />
DE<br />
indirekt<br />
Other<br />
countries<br />
indirect<br />
Total<br />
indirect<br />
Total<br />
direct and<br />
indirect<br />
Appraised market values,<br />
portfolio 1 80,410 0 80,410 0 3,259 3,259 83,669<br />
Appraised rent,<br />
portfolio 2 5,105 0 5,105 0 0 0 5,105<br />
Positive changes in value<br />
according to appraisals<br />
280 0 280 0 0 0 280<br />
Other positive changes<br />
in value<br />
378 0 378 0 0 0 378<br />
Negative changes in value<br />
according to appraisals<br />
0 0 0 0 0 0 0<br />
Other negative changes<br />
in value<br />
0 0 0 0 0 0 0<br />
Changes in value according to<br />
appraisals, total<br />
280 0 280 0 0 0 280<br />
Other changes in value,<br />
total<br />
378 0 378 0 0 0 378<br />
Leasing 2<br />
Leasing information<br />
Leasing information 3<br />
in %<br />
DE<br />
direct<br />
Other<br />
countries<br />
direct<br />
Total<br />
direct<br />
DE<br />
indirect<br />
Other<br />
countries<br />
indirect<br />
Total<br />
indirect<br />
Total<br />
direct and<br />
indirect<br />
Annual rental income, office 0.7 0.0 0.7 0.0 0.0 0.0 0.7<br />
Annual rental income,<br />
retail/catering<br />
3.3 0.0 3.3 0.0 0.0 0.0 3.3<br />
Annual rental income, hotel 0.0 0.0 0.0 0.0 0.0 0.0 0.0<br />
Annual rental income,<br />
industry (warehouses, facilities)<br />
0.0 0.0 0.0 0.0 0.0 0.0 0.0<br />
Annual rental income, residential 91.2 0.0 91.2 0.0 0.0 0.0 91.2<br />
Annual rental income, leisure 0.0 0.0 0.0 0.0 0.0 0.0 0.0<br />
Annual rental income, parking 4.4 0.0 4.4 0.0 0.0 0.0 4.4<br />
Annual rental income, other 0.4 0.0 0.4 0.0 0.0 0.0 0.4<br />
Vacancy rate, office 0.2 0.0 0.2 0.0 0.0 0.0 0.2<br />
Vacancy rate, retail/catering 0.3 0.0 0.3 0.0 0.0 0.0 0.3<br />
Vacancy rate, hotel 0.0 0.0 0.0 0.0 0.0 0.0 0.0<br />
Vacancy rate, industry<br />
(warehouses, facilities)<br />
0.0 0.0 0.0 0.0 0.0 0.0 0.0<br />
Vacancy rate, residential 17.5 0.0 17.5 0.0 0.0 0.0 17.5<br />
Vacancy rate, leisure 0.0 0.0 0.0 0.0 0.0 0.0 0.0<br />
Vacancy rate, parking 1.0 0.0 1.0 0.0 0.0 1.0<br />
Vacancy rate, other 0.0 0.0 0.0 0.0 0.0 0.0 0.0<br />
Letting rate 81.0 0.0 81.0 0.0 0.0 0.0 81.0<br />
1 In the case of properties under construction, the information refers to the proportion completed.<br />
2 Not including properties under construction.<br />
3 Annual rental income was calculated using the estimated net rental income; vacancy rates and the<br />
letting rate were calculated using the estimated gross rental income.<br />
15
16<br />
Expiring tenancy agreement<br />
As the Fund is primarily a residential real estate fund where the majority of tenancy agreements are signed for indefinite<br />
periods, the residential tenancy agreements and parking space leases characterised by short-term notice periods are presented<br />
on an aggregate basis in the ‘unlimited’ column. The graph depicting expiring commercial leases shows 2009 to 2019.<br />
Expiring tenancy agreements (basis: estimated net rental)<br />
100%<br />
90%<br />
80%<br />
70%<br />
60%<br />
50%<br />
40%<br />
30%<br />
20%<br />
10%<br />
0%<br />
1.5% 0.0% 0.3% 0.1% 1.6% 0.6% 0.0% 0.8% 0.0% 0.0% 0.0%<br />
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019<br />
Development of the Fund (Multi-year Review)<br />
All figures in € thousand 30 April 2009 30 April 2008<br />
Properties 80,410 30,230<br />
Equity interests in real estate companies 72 0<br />
Securities 0 0<br />
Bank deposits 14,584 19,606<br />
Receivables and other assets<br />
4,174<br />
16,321<br />
Less liabilities and provisions<br />
1,523<br />
17,257<br />
Fund assets 97,717 48,900<br />
Number of units in circulation 9,308,147 4,851,244<br />
Unit value (€) 10.50 10.08<br />
Distribution per unit (€) 0.37 0.03<br />
Distribution date 3 August 2009 1 August 2008<br />
95,1%<br />
unlimited
Development of Returns (Multi-year Review) 1<br />
Return ratios in %<br />
I. Properties<br />
1 The Investment Fund’s historical performance is not necessarily indicative of future performance.<br />
2 For the short financial year from 27 December 2007 to 30 April 2008.<br />
3 According to the BVI method.<br />
Financial year<br />
2008/2009<br />
Financial year<br />
2007/2008 2<br />
Gross income 5.3 3.3<br />
Management expenses -0.7 0.0<br />
Net income 4.6 3.3<br />
Changes in value 1.3 8.0<br />
Income tax incurred outside Germany 0.0 0.0<br />
Deferred taxes incurred outside Germany 0.0 0.0<br />
Income before loan expenses 5.9 11.3<br />
Income after loan expenses in currency 5.7 11.3<br />
Total income in currency 5.7 11.3<br />
Exchange rate changes 0.0 0.0<br />
Total income in Fund currency 5.7 11.3<br />
II. Liquidity 3.7 3.0<br />
Total Fund income after Fund expenses 3 4.5 0.8<br />
17
Ville-la-Grand, Frankreich
Development of the Fund<br />
20<br />
<strong>Real</strong>ized<br />
gains/<br />
losses<br />
€<br />
Unrealised<br />
changes in value<br />
in previous years<br />
€<br />
Income for<br />
the period<br />
under review<br />
€<br />
Unit<br />
transactions<br />
Fund assets at the beginning<br />
48,899,592.00<br />
of the year<br />
Distribution for the previous year -145,537.32<br />
Adjustment item for units<br />
0.00<br />
issued/redeemed up to the<br />
distribution date<br />
Inflow of funds from sale of units<br />
Outflow of funds from redemption of units<br />
Net inflow/outflow of funds<br />
€<br />
Total<br />
€<br />
46,005,425.67<br />
-79,624.35<br />
45,925,801.32 45,925,801.32<br />
Equalisation paid -1,019,084.09<br />
Ordinary net income 3,457,593.88<br />
<strong>Real</strong>ised gains<br />
less unrealised changes in value in<br />
previous years<br />
on properties<br />
(of which in foreign currency)<br />
on equity interests in real estate companies<br />
(of which in foreign currency)<br />
on liquid assets<br />
(of which in foreign currency) 0.00<br />
<strong>Real</strong>ised losses<br />
less unrealised changes in value in<br />
previous years<br />
on properties<br />
(of which in foreign currency)<br />
on equity interests in real estate companies<br />
(of which in foreign currency)<br />
on liquid assets<br />
(of which in foreign currency) 0.00<br />
Changes in value of<br />
unrealised gains<br />
on properties<br />
1,939,800.70<br />
(of which in foreign currency)<br />
on equity interests in real estate companies<br />
(of which in foreign currency)<br />
on liquid assets<br />
1,939,800.70<br />
(of which in foreign currency)<br />
Changes in value of<br />
unrealised losses<br />
on properties<br />
-1,301,715.00<br />
(of which in foreign currency)<br />
on equity interests in real estate companies<br />
-39,315.35<br />
(of which in foreign currency)<br />
on liquid assets<br />
-1,341,030.35<br />
(of which in foreign currency)<br />
Changes in exchange rates<br />
on properties<br />
on equity interests in real estate companies<br />
on measurement of receivables and other assets<br />
on liquid assets 0.00<br />
Fund assets at financial year-end 97,717,136.14
Notes to the Statement of Changes in Fund Assets<br />
The Statement of Changes in Fund Assets indicates the transactions<br />
during the reporting period that led to the assets<br />
reported in the Fund’s Statement of Assets and Liabilities. It<br />
provides a breakdown of the difference between the assets at<br />
the beginning and the end of the financial year.<br />
The distribution for the previous year is the distribution<br />
amount reported in the Annual Report for the previous year<br />
(see the “Calculation of the Distribution” in that document).<br />
The equalisation paid item is used to account for the issue<br />
and redemption of units during the period between the end<br />
of the financial year and the distribution date. Investors who<br />
acquire units between these two dates participate in the<br />
distribution even though their unit purchases were not<br />
recognised as a cash inflow during the prior-year reporting<br />
period. Conversely, investors who sell their units between<br />
these two dates do not participate in the distribution even<br />
though the redemption of their units was not recognised as<br />
a cash outflow during the prior-year reporting period.<br />
The inflow of funds from the sale of units and the outflow of<br />
funds from the redemption of units are calculated by multiplying<br />
the respective issue/redemption price 1 by the number<br />
of units issued or redeemed. The issue/redemption price<br />
includes the accrued income per unit (equalisation paid).<br />
The equalisation paid is deducted from or added to the inflows<br />
and outflows of funds, which thus only indicate the<br />
change in assets. The effect of the equalisation paid is that<br />
changes in the number of units in issue do not affect the<br />
amount distributed per unit.<br />
The ordinary net income is given in the Statement of Income<br />
and Expenditure.<br />
The changes in value of unrealised profits or losses on<br />
properties and equity interests in real estate companies are<br />
the result of remeasurement gains and losses and changes<br />
in carrying amounts during the financial year. Changes in<br />
market value due to revaluations and gains on initial valuation<br />
are recognised, as are all other changes in the carrying<br />
amounts of the properties or equity interests. These may be<br />
due to the creation or reversal of provisions, purchase price<br />
adjustments after the fact, or cost reimbursements, for<br />
example.<br />
1 No front-end charge or redemption fee is levied at the present time.<br />
21
Statement of Assets and Liabilities as at 30 April 2009<br />
I. Properties<br />
22<br />
1. <strong>Residential</strong> rental properties<br />
(of which in foreign currency) (0.00)<br />
2. Commercial properties<br />
(of which in foreign currency) (0.00)<br />
3. Mixed-use properties<br />
(of which in foreign currency) (0.00)<br />
Total properties<br />
(of which in foreign currency) (0.00)<br />
II. Equity interests in real estate companies<br />
1. Majority interests<br />
(of which in foreign currency) (0.00)<br />
2. Minority interests<br />
(of which in foreign currency) (0.00)<br />
Total equity interests in real estate companies<br />
(of which in foreign currency) (0.00)<br />
III. Liquid assets<br />
1. Bank deposits<br />
(of which in foreign currency) (0.00)<br />
2. Investment fund units<br />
(of which in foreign currency) (0.00)<br />
Total liquid assets<br />
(of which in foreign currency) (0.00)<br />
IV. Receivables and other assets<br />
1. Receivables from property management<br />
(of which in foreign currency) (0.00)<br />
2. Receivables from real estate companies<br />
(of which in foreign currency) (0.00)<br />
3. Interest receivables<br />
(of which in foreign currency) (0.00)<br />
4. Other assets<br />
(of which in foreign currency) (0.00)<br />
Total receivables and other assets<br />
(of which in foreign currency) (0.00)<br />
Total I. – IV.<br />
(of which in foreign currency) (0.00)<br />
€ €<br />
Share of<br />
Fund assets<br />
in %<br />
76,410,000.00 78.2<br />
0.00<br />
4,000,000.00 4.1<br />
80,410,000.00 82.3<br />
72,259.77 0.1<br />
0.00<br />
72,259.77<br />
0.1<br />
14,583,561.09 14.9<br />
0.00<br />
14,583,561.09 14.9<br />
806,111.38<br />
3,258,640.87<br />
58,958.31<br />
50,836.26<br />
4,174,546.82<br />
4.3<br />
99,240,367.68 101.6
V. Liabilities<br />
1. from loans<br />
of which from secured loans (section 82(3) of the InvG)<br />
(total in foreign currency)<br />
No items in foreign currency existed as at the reporting date.<br />
€ €<br />
(0.00)<br />
(0.00)<br />
2. from real estate purchases and construction projects<br />
(of which in foreign currency) (0.00)<br />
3. from property management<br />
(of which in foreign currency) (0.00)<br />
4. Other liabilities<br />
(of which in foreign currency) (0.00)<br />
Total liabilities<br />
(of which in foreign currency) (0.00)<br />
VI. Provisions<br />
(of which in foreign currency) (0.00)<br />
Total V. – VI.<br />
(of which in foreign currency) (0.00)<br />
0.00<br />
533,090.97<br />
780,148.65<br />
124,291.75<br />
Share of<br />
Fund assets<br />
in %<br />
1,437,531.37 1.5<br />
Fund assets 97,717,136.14 100.0<br />
Unit value (€)<br />
Number of units in circulation<br />
85,700.17<br />
1,523,231.54<br />
10.50<br />
9,308.147<br />
0.1<br />
1.6<br />
23
Notes to the Statement of Assets and Liabilities<br />
Fund assets<br />
The Fund’s assets amounted to €97,717 thousand at the<br />
reporting date (30 April 2009). With 9,308,147 units in issue<br />
at the end of the financial year, this corresponds to a unit<br />
price of €10.50.<br />
In the period under review, 4,464,508 units were issued and<br />
7,605 units redeemed. This corresponds to a net inflow of<br />
funds of €45,926 thousand.<br />
As at 30 April 2009, the <strong>Bouwfonds</strong> <strong>European</strong> <strong>Residential</strong><br />
portfolio contained five directly held properties in Germany<br />
and one property under construction that is held via a real<br />
estate company in France. Detailed information on the real<br />
estate assets can be found in the Schedule of Properties.<br />
Properties<br />
Directly held real estate assets totalled €80,410 thousand as<br />
at the reporting date and comprised four residential properties<br />
and one mixed-use property in Germany.<br />
Equity interests in real estate companies<br />
The Fund held a 100% equity interest in a French real estate<br />
company as at the reporting date.<br />
Liquid assets<br />
Liquid assets totalled €14,584 thousand at the reporting date<br />
and were held in their entirety in current accounts. Detailed<br />
information on liquid assets can be found in the Liquid Assets.<br />
€4,886 thousand of the total liquidity of €14,584 thousand<br />
has been earmarked to comply with the statutory minimum<br />
liquidity. €780 thousand has been reserved to settle liabilities<br />
from property management, and €533 thousand for liabilities<br />
from property purchases and construction projects.<br />
Receivables and other assets<br />
Receivables and other assets totalled €4,175 thousand as at<br />
the reporting date.<br />
24<br />
Receivables from property management in the amount of<br />
€806 thousand comprise rent receivables (€55 thousand)<br />
and receivables from chargeable operating expenses<br />
(€751 thousand). Receivables from real estate companies<br />
relate to the shareholder loans (€3,259 thousand) that have<br />
been granted. Interest receivables in the amount of<br />
€59 thousand are the result of shareholder loans to the<br />
French real estate company (€35 thousand) and bank interest<br />
(€24 thousand). Other receivables (€51 thousand) include<br />
capitalised transaction costs from real estate purchases<br />
(€38 thousand) and VAT receivables against the Investment<br />
Company (€4 thousand).<br />
Liabilities<br />
Liabilities totalled €1,438 thousand as at the reporting date.<br />
Liabilities from real estate purchases and construction<br />
projects (€533 thousand) mainly consist of performance<br />
guarantees (€500 thousand) for the property in Markt Schwaben.<br />
The liabilities from property management of €780 thousand<br />
primarily comprise advance payments of operating expenses<br />
in the amount of €746 thousand. Other liabilities of<br />
€125 thousand include liabilities from value added tax of<br />
€7 thousand, liabilities relating to the Custodian Bank fee<br />
of €4 thousand and of €42 thousand for Fund management.<br />
Liabilities were also reported for other loans (€63 thousand);<br />
these mainly relate to the commitment fees for two loans.<br />
In the Annual Report as at 30 April 2008 it was stated that, to<br />
support the launch, the Investment Company has so far<br />
waived the fee of €394 thousand payable by the Fund for the<br />
acquisition of the Voltastrasse property in Frankfurt. If the<br />
first revaluation of the property revealed a gain on initial<br />
valuation, <strong>Catella</strong> would exert its claim against the Fund, providing<br />
that the gain on initial valuation was sufficient, up to<br />
a maximum of the full amount of €394 thousand (debtor<br />
warrant). This fee was finally waived.<br />
Provisions<br />
As at the reporting date, provisions for audit costs had been<br />
recognised in the amount of €38 thousand, as had provisions<br />
for tax consulting of €30 thousand and for publication costs<br />
of €18 thousand.
Burgerfeld, Markt Schwaben<br />
25
Schedule of Properties 1<br />
I. Directly held properties in eurozone countries 2<br />
II. Directly held properties in countries with other currencies<br />
There were no directly held properties in countries with other currencies as at the reporting date.<br />
2, 6<br />
III. Equity interests in real estate companies in eurozone countries<br />
IV. Equity interests in real estate companies in countries with other currencies<br />
There were no equity interests in real estate companies in countries with other currencies as at the reporting date.<br />
26<br />
No. Location of<br />
property<br />
1<br />
2<br />
3<br />
4<br />
5<br />
Grot Steenbusch<br />
DE – 24145 Kiel<br />
Grot Steenbusch 30-40<br />
Voltastraße<br />
DE – 60486 Frankfurt / Main<br />
Voltastrasse 63-65<br />
Burgerfeld<br />
DE – 85570 Markt Schwaben<br />
Burgerfeld<br />
Hanhoopsfeld<br />
DE – 21079 Hamburg<br />
Hanhoopsfeld 2a-11, Schneverdingerweg 1,3<br />
Gelieustrasse<br />
DE – 12203 Berlin<br />
Gelieustrasse 5-6g<br />
No. Location of<br />
property<br />
6<br />
Type of property<br />
C Commercial property<br />
MX Mixed-use property<br />
H Heritable building right<br />
R <strong>Residential</strong> rental property<br />
UC Property under construction<br />
Ville-la-Grand<br />
F – 74100 Ville-la-Grand<br />
Rue Léon Burgeois,<br />
Rue des Voirons<br />
Type of use<br />
O Office<br />
R/C Retail/catering<br />
I Industry (warehouses, facilities)<br />
R <strong>Residential</strong><br />
Ho Hotel<br />
L Leisure<br />
P Parking<br />
Ot Other<br />
Information on the<br />
equity interest<br />
BERF France I SAS, Paris<br />
Equity interest: 100%<br />
Shareholder loan: € 3.259 thousand<br />
Features<br />
OP Outside parking spaces<br />
D District heating/cooling<br />
G Garage<br />
AC Air conditioning<br />
GL Goods lift<br />
PL Passenger lift<br />
Type of<br />
property<br />
MX<br />
R<br />
R<br />
R, H<br />
R<br />
Type of<br />
property<br />
UC -<br />
Type of use<br />
in % 3<br />
12% O<br />
51% C/R<br />
33% R<br />
4% P<br />
1% C/R<br />
92% R<br />
7% P<br />
97% R<br />
3% P<br />
99% R<br />
1% P<br />
92% R<br />
6% P<br />
2% Ot<br />
Type of use<br />
in % 3
Acquisition date 4 Year constructed/<br />
renovated<br />
Area of land<br />
in m 2<br />
Floor space,<br />
commercial<br />
in m 2<br />
Floor space,<br />
residential<br />
in m 2<br />
Features<br />
03/2008 2003 3,375 1,351 1,197 OP, D, PL<br />
04/2008 2008 4,698 101 9,846 D, G, PL<br />
11/2008 5 2009 5,720 - 5,470 G<br />
11/2008<br />
1960-1962<br />
1994<br />
2007-2008<br />
(modernisation)<br />
24,129 - 16,605 OP, D, PL<br />
12/2008 1971 16,575 - 16,440 OP, D, G, PL<br />
Acquisition date 4 Year constructed/<br />
renovated<br />
-<br />
Completion scheduled<br />
for approx. mid-2010<br />
Area of land<br />
in m 2<br />
Floor space,<br />
commercial<br />
in m 2<br />
Floor space,<br />
residential<br />
in m 2<br />
Features<br />
2,659 - 2,740 7 -<br />
1 In contrast to the BVI guidelines, the properties in the individual categories are listed in order of their<br />
acquisition date and not according to location.<br />
2 All information taken from the expert appraisals unless stated otherwise.<br />
3 The floor space is allocated on the basis of the annual estimated net rental income.<br />
4 Transfer of risks and rewards of ownership.<br />
5 The carrying amount recognised on transfer was calculated on the basis of the proportion completed as of<br />
1 November 2008, 1 December 2008 and 1 February 2009.<br />
6 Where properties are held via real estate companies, all information is given for the property as a whole,<br />
independent of the size of the equity interest.<br />
7 Planned floor space after completion.<br />
27
Overview – Market Values and Rents<br />
I. Directly held properties in eurozone countries<br />
28<br />
No. Property Letting rate (as a proportion<br />
of rental income) as at<br />
30 Apr. 2009 in %<br />
1<br />
2<br />
3<br />
4<br />
5<br />
Grot Steenbusch<br />
DE – 24145 Kiel<br />
Voltastrasse<br />
DE – 60486<br />
Frankfurt / Main<br />
Burgerfeld<br />
DE – 85570<br />
Markt Schwaben<br />
Hanhoopsfeld<br />
DE – 21079<br />
Hamburg<br />
Gelieustrasse<br />
DE – 12203<br />
Berlin<br />
No. Property Letting rate (as a proportion<br />
of rental income) as at<br />
30 Apr. 2009 in %<br />
Anchor tenant<br />
sector 1<br />
Expiring leases (as a<br />
proportion of rental income)<br />
in %<br />
Estimated net rent 2<br />
annualised<br />
€ thousand<br />
90.5% - - 286.8<br />
96.8% - - 1,485.9<br />
10.1% - - 840.1<br />
96.5% - - 1,260.1<br />
95.8% - - 1,108.3<br />
II. Directly held properties in countries with other currencies<br />
There were no directly held properties in countries with other currencies as at the reporting date.<br />
III. Equity interests in real estate companies in eurozone countries<br />
1<br />
Rue Léon Burgeois,<br />
Rue des Voirons<br />
F – 74100 Ville-la-Grand<br />
Anchor tenant<br />
sector 1<br />
Expiring leases (as a<br />
proportion of rental income)<br />
in %<br />
Estimated net rent 2<br />
annualised<br />
€ thousand<br />
- - - -<br />
IV. Equity interests in real estate companies in countries with other currencies<br />
There were no equity interests in real estate companies in countries with other currencies as at the reporting date.<br />
1 No calculation is possible, as the focus is on residential properties.<br />
2 Figures as at 30 April 2009.<br />
3 Information relates to acquisition costs paid to date.
Purchase price/<br />
construction costs<br />
€ thousand<br />
Transaction<br />
costs<br />
€ thousand<br />
Estimated rent (annualised) as<br />
a proportion of acquisition costs<br />
in %<br />
Estimated rent p.a. acc.<br />
to appraisal<br />
€ thousand<br />
Current market value acc.<br />
to appraisal<br />
€ thousand<br />
3,591.3 242.7 7.5% 280.5 4,000.0<br />
24,707.0 1,500.0 5.7% 1,487.4 26,460.0<br />
15,258.9 1,284.1 5.1% 783.7 15,250.0<br />
17,654.9 1,060.4 6.7% 1,402.7 19,700.0<br />
13,039.0 1,215.1 7.8% 1,150.2 15,000.0<br />
Acquisition costs for the equity interest<br />
€ thousand<br />
Estimated rent (annualised) as<br />
a proportion of acquisition costs<br />
in %<br />
Estimated rent p.a. acc.<br />
to appraisal<br />
€ thousand<br />
Current market value acc.<br />
to appraisal<br />
€ thousand<br />
111,6 3 - - -<br />
29
Schedule of <strong>Real</strong> <strong>Estate</strong> Purchases and Sales<br />
Purchases<br />
I. Directly held properties in eurozone countries<br />
II. Directly held properties in countries with other currencies<br />
No directly held properties in countries with other currencies were purchased in the period under review.<br />
III. Equity interests in real estate companies in eurozone countries<br />
Sales<br />
There were no sales in the period under review.<br />
30<br />
Country Location of property Type of property Transfer of risks<br />
and rewards of<br />
ownership<br />
Germany 85570 Markt Schwaben, Burgerfeld R 11/2008 1<br />
Germany 21079 Hamburg, Hanhoopsfeld 2a-11 R, H 11/2008<br />
Germany 12203 Berlin-Steglitz, Gelieustraße 5-6g R 12/2008<br />
Country Name of the real estate company Registered office<br />
of the real estate<br />
company<br />
Equity interest Transfer of risks<br />
and rewards of<br />
ownership<br />
France BERF France I SAS Paris 100% 02/2009<br />
IV. Equity interests in real estate companies in countries with other currencies<br />
No equity interests in real estate companies in countries with other currencies were purchased in the period under review.<br />
1 The carrying amount recognised on transfer was calculated on the basis of the proportion<br />
completed on 1 November 2008, 1 December 2008 and 1 February 2009.
Liquid Assets<br />
The liquid assets with a total volume of €14,584 thousand<br />
(14.9% of the Fund assets) are held as bank deposits.<br />
I. Money market instruments As at 30 April 2009<br />
No money market instruments were held at the reporting date.<br />
II. Investment units As at 30 April 2009<br />
No investment units were held at the reporting date.<br />
III. Securities As at 30 April 2009<br />
No securities were held at the reporting date.<br />
IV. Securities repurchase and lending transactions As at 30 April 2009<br />
No securities repurchase or lending transactions existed at the reporting date.<br />
V. Hedging transactions As at 30 April 2009<br />
There were no hedging transactions at the reporting date.<br />
Voltastraße, Frankfurt/Main<br />
31
Statement of Income and Expenditure for the Period<br />
from 1 May 2008 to 30 April 2009<br />
I. Income<br />
32<br />
1. Income from properties<br />
(of which in foreign currency) (0.00)<br />
2. Income from equity interests in real estate companies<br />
(of which in foreign currency) (0.00)<br />
3. Income from liquid assets<br />
3.1 Income from bank deposits<br />
(of which in foreign currency)<br />
3.2 Income from money market instruments<br />
(0.00)<br />
(of which in foreign currency)<br />
3.3 Income from investment units<br />
(0.00)<br />
(of which in foreign currency)<br />
3.4 Income from securities<br />
(0.00)<br />
(of which in foreign currency)<br />
(0.00)<br />
4. Interest on the Fund’s own resources from construction projects<br />
(of which in foreign currency) (0.00)<br />
5. Other income<br />
(of which in foreign currency)<br />
Total income<br />
(0.00)<br />
(of which in foreign currency) (0.00)<br />
II. Expenditure<br />
1. <strong>Real</strong> estate management costs<br />
1.1 Operating costs<br />
(of which in foreign currency)<br />
1.2 Maintenance costs<br />
(of which in foreign currency)<br />
1.3 Property management costs<br />
(of which in foreign currency)<br />
1.4 Other costs<br />
(of which in foreign currency)<br />
€ € €<br />
(0.00)<br />
(0.00)<br />
(0.00)<br />
(0.00)<br />
2. Ground rents, life annuities and term annuities<br />
(of which in foreign currency) (0.00)<br />
3. Interest expenses<br />
(of which in foreign currency) (0.00)<br />
4. Foreign taxes<br />
(of which in foreign currency) (0.00)<br />
5. Investment Fund administration costs<br />
5.1 Fund management fee<br />
5.2 Custodian Bank fee<br />
5.3 Expert fees<br />
5.4 Other expenses in accordance with section 13(5) BVB<br />
(of which in foreign currency) (0.00)<br />
Total expenditure<br />
(of which in foreign currency) (0.00)<br />
594.005,27<br />
0.00<br />
0.00<br />
0.00<br />
31,243.51<br />
91,048.87<br />
102,762.17<br />
97,645.34<br />
319,653.43<br />
48,794.17<br />
10,169.45<br />
113,338.39<br />
2,707,187.27<br />
0.00<br />
594,005.27<br />
0.00<br />
50,223.88<br />
3,351,416.42<br />
322,699.89<br />
13,858.12<br />
84,393.18<br />
0.00<br />
491,955.44<br />
912.906,63<br />
III. Equalisation paid 1,019,084.09<br />
Ordinary net income 3,457,593.88
Notes to the Statement of Income and Expenditure<br />
Income<br />
Income in the reporting period totalled €3,351 thousand.<br />
Income from properties of €2,707 thousand represents the<br />
rental income generated by the properties.<br />
Income from liquid assets totalled €594 thousand in the year<br />
under review. This stemmed from interest income on time<br />
deposits of €366 thousand and from interest on bank<br />
accounts and other interest income of €228 thousand. Time<br />
deposits are invested with the objective of generating returns<br />
and with a view to risks, as well as in accordance with the<br />
provisions of the Investmentgesetz (InvG – German Investment<br />
Act).<br />
The Other income item of €50 thousand in total relates<br />
mainly to interest income from the shareholder loan of<br />
€35 thousand granted to the equity interest in France, as well<br />
as to refunded insurance contributions (€15 thousand).<br />
Expenditure<br />
Expenditure of €913 thousand mainly comprises Investment<br />
Fund administration costs and real estate management costs.<br />
The <strong>Real</strong> estate management costs item of €323 thousand<br />
consists of operating expenses, maintenance costs, property<br />
management costs and other costs.<br />
Operating costs of €31 thousand relate to incidental costs<br />
that cannot be passed through to tenants. The maintenance<br />
costs item of €91 thousand relates long-term value presentation<br />
to measures. Property management costs of €103<br />
thousand relate mainly (€98 thousand) to the costs of<br />
managing the individual properties.<br />
Other costs (€98 thousand) contain costs for initial and<br />
subsequent letting (€47 thousand), €35 thousand chargeable<br />
to the Investment Fund in accordance with section 13(5) of the<br />
Special Fund Rules (BVB) and other costs of €16 thousand.<br />
In the period under review, ground rent of €14 thousand was<br />
recognised for the Hamburg-Harburg property.<br />
Interest expenses (€84 thousand) include loan interest for a<br />
short-term loan that has since been repaid in full (€21 thousand)<br />
and commitment fees for two additional loans that have not<br />
yet been drawn (€63 thousand).<br />
The Investment Fund administration costs of €492 thousand<br />
mainly include the ongoing Fund management fee<br />
(€320 thousand), the Custodian Bank fee (€49 thousand)<br />
and audit and publication costs (€109 thousand).<br />
Acquisition fees for the properties are not included here, as<br />
they are not recognised as income but rather as incidental<br />
acquisition costs for the properties concerned.<br />
Equalisation paid<br />
The Equalisation paid item of €1,019 thousand is the net<br />
amount of the sums paid by investors acquiring units in the<br />
period under review to offset accrued income and of income<br />
reimbursed by the Fund on redemption as part of the unit<br />
redemption price.<br />
Ordinary net income<br />
Ordinary net income for the past year totalled €3,458 thousand.<br />
Total expense ratio (TER)<br />
The Total expense ratio (0.70%) expresses the sum of all<br />
costs and fees as a percentage of the average fund assets in<br />
the financial year.<br />
Total expenses comprise the Fund management fee, the<br />
Custodian Bank fee and the expert fees, as well as other<br />
expenses in accordance with section 13(5) of the BVB<br />
(excluding transaction costs).<br />
Sales provisions<br />
The Investment Company is not reimbursed for fees and<br />
expenses paid to the Custodian Bank and third parties by the<br />
Investment Fund. The Investment Company grants brokers,<br />
e.g. banks, brokerage fees (“trail commission”) from the<br />
fund management fee paid to it.<br />
33
Calculation of the Distribution<br />
Ordinary net income<br />
As of 30 April 2009, ordinary net income amounted to<br />
€3,457,593.88.<br />
<strong>Real</strong>ised gains<br />
There were no realised gains as at the reporting date.<br />
Carried forward from previous year<br />
€27,278.87 was carried forward from the previous year.<br />
Surplus retained<br />
No surplus was retained from the net profit for the<br />
financial year.<br />
34<br />
total per unit<br />
Ordinary net income € 3,457,593.88 0.371<br />
<strong>Real</strong>ised gains less taxes on profits<br />
paid in countries abroad<br />
- on properties<br />
- on equity interests in real estate companies<br />
- on liquid assets<br />
€<br />
€<br />
€<br />
0.00<br />
0.00<br />
0.00<br />
0.000<br />
0.000<br />
0.000<br />
Carried forward from previous year € 27,278.87 0.003<br />
Surplus retained in accordance with section 14(2)<br />
of the Special Fund Rules (BVB) €<br />
0.00 0.000<br />
Amount available for distribution € 3,484,872.75 0.374<br />
Reinvestment in accordance with section 14(5) of the BVB<br />
Carried forward to new account<br />
€<br />
€<br />
0.00<br />
40,858.36<br />
0.000<br />
0.004<br />
Advance distribution € 0.00 0.000<br />
Total amount distributed for 9,308,147 units € 3,444,014.39 0.370<br />
<strong>Catella</strong> <strong>Real</strong> <strong>Estate</strong> <strong>AG</strong> Kapitalanlagegesellschaft<br />
Dr. A. Kneip B. Fachtner<br />
Spokesman Managing Board<br />
Munich, June 2009<br />
Carried forward to new account<br />
Income in the amount of €40,858.36 was carried forward<br />
for new account.<br />
Income intended for distribution<br />
There are 9,308,147 units in circulation, meaning that the<br />
distribution on 3 August 2009 amounts to €3,444,014.39.<br />
€0.37 will be paid out per share.
Voltastrasse, Frankfurt/Main<br />
35
Tax Information<br />
Income tax treatment of the distribution and retained amounts<br />
36<br />
Section 5(1) sentence 1 no. 1 of the InvStG Private<br />
investors<br />
Other business<br />
investors<br />
Corporations<br />
a) Amount of distribution made on 3 August 2009 0.3700 1 0.3700 1 0.3700 1<br />
- Deemed distribution from previous years<br />
included in the distribution, broken down<br />
by financial year<br />
0.0021<br />
- of which financial year 2007/2008<br />
0.0021 2<br />
0.0021<br />
0.0021 2<br />
0.0021<br />
0.0021 2<br />
memo item: the distribution made on 3 August<br />
2009 relates to the following cash distribution:<br />
0.3700 0.3700 0.3700<br />
b) Amount of distributed income 0.2777 3 0.2777 3 0.2777 3<br />
b) Deemed distribution 0.0072 0.0072 0.0072<br />
- of which non-deductible income-related expenses as<br />
defined in section 3(3) sentence 2 no. 2 of the InvStG<br />
0.0072 0.0072 0.0072<br />
c) Amounts included in the distribution/deemed<br />
distribution<br />
aa) - (repealed) - - -<br />
bb) - Tax-free capital gains as defined by section 2(3)<br />
no. 1 sentence 1 of the InvStG in the version<br />
applicable on 31 December 2008<br />
0.0000 - -<br />
cc) - Income as defined in section 3 no. 40<br />
of the EStG; 100%<br />
- 0.0000 -<br />
dd) - Income as defined in section 8b(1)<br />
of the KStG; 100%<br />
ee) - Disposal gains as defined in section 3 no. 40<br />
of the EStG; 100%<br />
ff ) - Disposal gains as defined in section 8b(2)<br />
of the KStG; 100%<br />
gg) - Income as defined in section 2(3) no. 1 sentence<br />
2 of the InvStG in the version applicable on<br />
31 December 2008, insofar as the income is<br />
not investment income as defined in section 20<br />
of the EStG (tax-free capital gains on subscription<br />
rights attached to bonus shares)<br />
hh) - Tax-free capital gains from properties as defined<br />
in section 2(3) no. 2 of the InvStG<br />
ii) - Income as defined in section 4(1) of the InvStG<br />
(foreign income exempt under double taxation<br />
agreements)<br />
jj) - Income as defined in section 4(2) of the InvStG<br />
for which no deduction under (4) has been made<br />
kk) - Income as defined in section 4(2) of the InvStG<br />
which gives rise to an entitlement to credit tax<br />
deemed to have been paid against income or<br />
corporation tax in accordance with a double<br />
taxation agreement<br />
ll) - Income as defined in section 2(2a) of the InvStG<br />
- of which retained<br />
- of which distributed on 3 August 2009<br />
- - 0.0000<br />
- 0.0000 -<br />
- - 0.0000<br />
0.0000 - -<br />
0.0000<br />
- -<br />
0.0000 0.0000 0.0000<br />
0.0000 0.0000 0.0000<br />
0.0000 0.0000 0.0000<br />
-<br />
-<br />
-<br />
0.0827<br />
0.0814<br />
0.0013<br />
0.0827<br />
0.0814<br />
0.0013
Section 5(1) sentence 1 no. 1 of the InvStG Private<br />
investors<br />
d) Basis of calculation for imputable/reimbursable<br />
Investment income tax as defined in section 7(1)<br />
and (2) of the InvStG<br />
- of which distributed on 3 August 2009<br />
- of which retained<br />
Investment income tax as defined in section 7(3)<br />
of the InvStG<br />
e) Amount of imputable/reimbursable<br />
Investment income tax as defined in section 7(1)<br />
to (3) of the InvStG<br />
- of which distributed on 3 August 2009<br />
- of which retained<br />
Investment income tax as defined in section 7(3)<br />
of the InvStG<br />
f ) Foreign taxes relating to income included in<br />
the distribution as defined in section 4(2) of<br />
the InvStG<br />
aa) - imputable foreign withholding tax on income<br />
as defined in section 4(2) of the InvStG<br />
aa) - of which on income not subject to the<br />
Teileinkünfteverfahren (partial income method)<br />
bb) - deductible foreign taxes (section34c(3) of the<br />
EStG) on income as defined in section 4(2) of<br />
the InvStG<br />
cc) - notional foreign withholding tax on income as<br />
defined in section 4(2) of the InvStG<br />
cc) - of which on income not subject to the<br />
Teileinkünfteverfahren (partial income method)<br />
g) Amount of depreciation/depletion as defined in<br />
section 3(3) sentence 1 of the InvStG<br />
- of which distributed on 3 August 2009<br />
- of which retained<br />
0.2849 4<br />
0.2777<br />
0.0072<br />
0.0000<br />
0.0712 5<br />
0.0694<br />
0.0018<br />
0.0000<br />
Other business<br />
investors<br />
0.2849 4<br />
0.2777<br />
0.0072<br />
0.0000<br />
0.0712 5<br />
0.0694<br />
0.0018<br />
0.0000<br />
Corporations<br />
0.2849 4<br />
0.2777<br />
0.0072<br />
0.0000<br />
0.0712 5<br />
0.0694<br />
0.0018<br />
0.0000<br />
0.0000 0.0000 0.0000<br />
0.0000 0.0000 0.0000<br />
0.0000 0.0000 0.0000<br />
0.0000 0.0000 0.0000<br />
0.0000 0.0000 0.0000<br />
0.0916<br />
0.0916<br />
0.0000<br />
0.0916<br />
0.0916<br />
0.0000<br />
h) (repealed) - - -<br />
1 Distributed income and deemed distributions are deemed to have accrued on the respective distribution date or when the resolution<br />
on the distribution is passed.<br />
2 The amount disclosed is the income calculated in accordance with tax provisions. The amount determined in line with investment<br />
law provisions is EUR 30,989.54, or EUR 0.0033 per unit certificate.<br />
3 The amount stated includes the taxable income of the Investment Fund calculated in accordance with section 3 of the InvStG. This<br />
amount includes income that is fully taxable for investors as well as income that falls under section 2(2) and (3) and section 4(1) and<br />
(2) of the InvStG. However, the deemed distribution from previous years contained in the distribution is not included.<br />
4 The amounts stated correspond to the basis of calculation to be applied for investment income tax. Exceptions may apply to specific<br />
investors in individual cases, for example due to non-assessment certificates.<br />
5 When held in custody. The German withholding tax disclosed does not include the solidarity surcharge.<br />
0.0916<br />
0.0916<br />
0.0000<br />
37
Tax Information<br />
€0.37 per unit will be distributed on 3 August 2009 for the<br />
financial year ended 30 April 2009.<br />
Taxation at fund level<br />
In Germany, investment funds are legally exempt from all<br />
income taxes. Income is taxed at the level of the investors.<br />
Taxation at private investor level<br />
If the units are held as private assets, taxable income from<br />
the Fund is treated as income from capital investments. This<br />
also includes the income distributed by the Investment Fund,<br />
deemed distributions and interim profits, as well as gains on<br />
the purchase and sale of fund units if these were or are<br />
purchased after 31 December 2008. This income is taxed in<br />
the year it accrues.<br />
Income from capital investments is subject to 25% withholding<br />
tax (plus solidarity surcharge and, if applicable,<br />
church tax). As the tax withheld is generally definitive (flat<br />
tax), income from capital investments does not, as a rule,<br />
have to be disclosed in the investor’s income tax return.<br />
When withholding the tax, the custodian, as a matter of<br />
principle, already offsets any losses and credits any foreign<br />
withholding taxes.<br />
Nevertheless, the tax withheld may not have definitive effect<br />
in some circumstances, e.g. if the investor’s personal tax rate<br />
is lower than the flat tax rate of 25%. In this case, income<br />
from capital investments can be disclosed in the investor’s<br />
income tax return. The tax office then applies the lower personal<br />
tax rate and counts the tax withheld against the investor’s<br />
personal tax liability (Günstigerprüfung – most<br />
favourable tax treatment).<br />
If no tax has been withheld on income from capital investments<br />
(for example because a gain on the sale of fund units<br />
is generated in a foreign securities account), this income<br />
must be disclosed in the tax return. This income from capital<br />
investments is then also subject to the 25% flat tax rate or<br />
the lower personal tax rate in the course of the assessment.<br />
Even if the tax has been withheld and the investor has a<br />
higher personal tax rate, information on income from capital<br />
investments must be disclosed if, for example, extraordinary<br />
personal expenses or special personal deductions (e.g.<br />
donations) are claimed in the investor’s income tax return.<br />
No tax needs to be withheld if the investor is a German tax<br />
38<br />
resident and has submitted an exemption instruction,<br />
provided that the taxable income components do not exceed<br />
EUR 801 for single persons or EUR 1,602 for married couples<br />
assessed jointly. The same also applies if a non-assessment<br />
certificate has been submitted or if foreign investors furnish<br />
proof of their non-resident status for tax purposes.<br />
Distributed or retained domestic rental income, interest,<br />
other income, foreign dividends and gains on the sale of<br />
domestic real estate within the 10-year holding period that<br />
are held in domestic custody are subject to the 25% withholding<br />
tax (plus solidarity surcharge and, if applicable,<br />
church tax).<br />
If units are held in an investment fund classed as an accumulating<br />
fund for tax purposes, the Investment Company<br />
itself remits the 25% tax (plus solidarity surcharge) withheld<br />
on the retained income that is subject to tax. Thus, the issue<br />
and redemption prices for the fund units are reduced by the<br />
tax withheld at the end of the financial year. As investors are<br />
generally unknown to the investment company, church tax<br />
cannot be retained in this case; as a result, investors who are<br />
subject to church tax must disclose the corresponding information<br />
in their income tax return.<br />
Gains on the sale of domestic and foreign properties not<br />
falling within the 10-year holding period<br />
Gains on the sale of domestic and foreign properties not<br />
falling within the 10-year holding period that are generated at<br />
the Investment Fund level are always tax-free for the investor.<br />
Foreign rental income and gains on the sale of foreign<br />
properties within the 10-year holding period<br />
Foreign rental income and gains on the sale of foreign<br />
properties in respect of which Germany has waived taxation<br />
under a double taxation agreement (exemption method) are<br />
also tax-free (general rule). The tax-free income also has no<br />
effect on the applicable tax rate (i.e. Progressionsvorbehalt<br />
– progression clause – does not apply).<br />
If, exceptionally, the tax credit method has been agreed in the<br />
relevant double taxation treaty or no double taxation treaty<br />
has been signed, the statements made regarding the treatment<br />
of gains on the sale of domestic real estate within the<br />
10-year holding period shall apply analogously. Taxes paid in<br />
the relevant countries of origin may be offset against German<br />
income tax where appropriate, insofar as the taxes paid<br />
have not already been claimed as income-related expenses at<br />
the level of the Investment Fund.<br />
Gains on the sale of securities, gains on forward transactions<br />
and income from option premiums
Gains on the sale of shares, equity-equivalent profit participation<br />
rights and investment units, gains on forward transactions<br />
and income from option premiums generated at the<br />
Investment Fund level are not recognised at the level of the<br />
investor unless they are distributed.<br />
Gains on the sale of securities that are distributed are taxable;<br />
25% tax is withheld if the units are held in a domestic<br />
custody account (plus the solidarity surcharge and church<br />
tax, if applicable). However, distributed gains on the sale of<br />
securities and gains from forward transactions are tax-free<br />
if the securities were acquired at Investment Fund level before<br />
1 January 2009 or the forward transactions were entered into<br />
before 1 January 2009.<br />
Negative taxable income<br />
If, after negative income has been offset against similar<br />
positive income at Investment Fund level, a negative overall<br />
amount is produced, this is carried forward at Investment<br />
Fund level. It can be offset against similar future positive<br />
taxable income at Investment Fund level in subsequent periods.<br />
Negative taxable income may not be directly allocated<br />
to investors.<br />
Repayments of capital<br />
Repayments of capital (e.g. in the form of construction<br />
project interest) are not taxable.<br />
Capital gains at investor level<br />
If a private investor sells units in an investment fund that<br />
were acquired after 31 December 2008, the disposal gain is<br />
subject to the 25% flat tax. If the units are held in a domestic<br />
securities account, the custodian withholds the tax. The 25%<br />
tax (plus the solidarity surcharge and church tax, if applicable)<br />
need not be withheld if a sufficient exemption instruction or<br />
a non-assessment certificate has been submitted.<br />
If investment units in an investment fund that were acquired<br />
before 1 January 2009 are resold by a private investor within<br />
twelve months of their purchase (taxable period), any capital<br />
gains are taxable as income from private disposals. If the<br />
total gains from “private disposals” during a calendar year<br />
amount to less than €600, these gains are tax-free (exemption<br />
limit). If the exemption limit is exceeded, the total private<br />
disposal gains are taxable.<br />
If units acquired before 1 January 2009 are sold outside the<br />
taxable period, the gains are tax-free for private investors.<br />
In calculating the capital gains, the interim profit at the time<br />
of acquisition must be deducted from the acquisition costs,<br />
and the interim profit at the time of disposal must be deducted<br />
from the selling price, so that interim profits are not<br />
1 In accordance with section 2(2a) of the InvStG, the taxable interest must<br />
be taken into account for the purposes of the earnings stripping rule in<br />
accordance with section 4h of the EStG.<br />
taxed twice (see below). In addition, the retained income that<br />
the investor has already taxed must be deducted from the<br />
selling price, so that double taxation is also avoided in this<br />
respect.<br />
Gains on the sale of fund units acquired after 31 December<br />
2008 are tax-free insofar as they relate to income that is taxfree<br />
under double taxation agreements, that accrued to the<br />
Fund during the holding period, and that has not yet been<br />
recognised at the investor level (gain on real estate for the<br />
proportionate period of ownership).<br />
The investment company publishes the gains on real estate<br />
on each valuation date as a percentage of the value of the<br />
investment units.<br />
Units Held as Business Assets (German Tax Residents)<br />
Domestic rental income, interest and similar income<br />
Domestic rental income, interest and other income from<br />
units are taxable by investors 1 . This applies regardless of<br />
whether this income is retained or distributed.<br />
Foreign rental income<br />
Germany generally exempts rental income from foreign real<br />
estate from taxation (exemption due to a double taxation<br />
agreement). However, investors that are not incorporated<br />
entities are subject to the progression clause.<br />
If, exceptionally, the tax credit method has been agreed in the<br />
relevant double taxation agreement or no double taxation<br />
agreement has been signed, income tax paid in the relevant<br />
countries of origin may be offset against German income tax<br />
or corporation tax where appropriate, insofar as the taxes<br />
paid have not already been claimed as income-related<br />
expenses at the level of the Investment Fund.<br />
Gains on the sale of domestic and foreign properties<br />
Retained gains at Fund level on the sale of domestic and<br />
foreign properties not falling within the 10-year holding<br />
period are of no significance for tax purposes at the investor<br />
level. Gains only become taxable upon distribution, whereby<br />
Germany generally does not tax foreign gains (exemption<br />
due to a double taxation agreement).<br />
Gains on the sale of domestic and foreign properties within<br />
the 10-year holding period, whether retained or distributed,<br />
are taxable at the investor level. Gains on the sale of domestic<br />
properties are fully taxable.<br />
Germany generally exempts gains on the sale of foreign real<br />
estate from taxation (exemption due to a double taxation<br />
39
Tax Information<br />
agreement). However, investors that are not incorporated<br />
entities are subject to the progression clause.<br />
If, exceptionally, the tax credit method has been agreed in the<br />
relevant double taxation agreement or no double taxation<br />
agreement has been signed, income tax paid in the relevant<br />
countries of origin may be offset against German income tax<br />
or corporation tax where appropriate, insofar as the taxes<br />
paid have not already been claimed as income-related<br />
expenses at the level of the Investment Fund.<br />
Tax need only not be withheld, or withheld tax can only be<br />
refunded, upon presentation of a corresponding nonassessment<br />
certificate. Otherwise, the investor receives a tax<br />
certificate documenting the tax withheld.<br />
Gains on the sale of securities, gains on transactions<br />
forward and income from option premiums<br />
Gains on the sale of shares, equity-equivalent profit participation<br />
rights and investment fund units, gains on forward<br />
transactions and income from option premiums are of no<br />
significance for tax purposes at the investor level if they are<br />
retained.<br />
If they are distributed, they are taxable at the investor level.<br />
Gains on the sale of shares are fully tax-free for investors that<br />
are corporations (5% of the profits are considered as nondeductible<br />
business expenses) or 40% tax-free for other<br />
business investors such as sole proprietorships and partnerships<br />
(partial income method).<br />
In contrast, disposal gains on bonds/capital claims, gains on<br />
forward transactions and income from option premiums are<br />
fully taxable.<br />
Income from the sale of capital claims that are not included<br />
in the list above must be treated in the same way as interest<br />
for tax purposes (see above).<br />
Distributed disposal gains on securities, distributed gains on<br />
forward transactions and distributed income from option<br />
premiums are subject to withholding tax (25% investment<br />
income tax plus the solidarity surcharge). This does not apply<br />
to gains on the sale of securities purchased before 1 January<br />
2009 and to gains on forward transactions entered into before<br />
1 January 2009. However, the paying agent does not<br />
withhold any tax in particular if the investor is a corporation<br />
with unlimited tax liability or if the investment income represents<br />
operating income of a domestic business and this is<br />
declared to the paying agent by the creditor of the investment<br />
income in an official form.<br />
Domestic and foreign dividends (particularly from real<br />
estate corporations)<br />
40<br />
Dividends paid by domestic and foreign real estate corporations<br />
that are distributed or retained in relation to units held<br />
as business assets are tax-free for corporations with the<br />
exception of dividends in accordance with the REIT-Gesetz<br />
(German REIT Act) (5% of dividends are considered as<br />
non-deductible business expenses). This income is taxable<br />
at 60% for sole proprietorships or natural persons holding<br />
equity interests in commercial partnerships (partial income<br />
method).<br />
Domestic dividends are subject to withholding tax (25%<br />
investment income tax plus the solidarity surcharge).<br />
Foreign dividends are generally subject to withholding tax<br />
(25% investment income tax plus the solidarity surcharge).<br />
However, the paying agent shall not withhold any tax in<br />
particular if the investor is a corporation with unlimited tax<br />
liability (whereby corporations as defined by section 1(1) no.<br />
4 and 5 of the Körperschaftsteuergesetz (KStG – German<br />
Corporation Tax Act) must submit a certificate from their tax<br />
office to the paying agent) or the foreign dividends represent<br />
operating income of a domestic business and this is declared<br />
to the paying agent by the creditor of the investment income<br />
in an official form.<br />
Subject to certain conditions, dividends paid by foreign (real<br />
estate) corporations may, as qualifying intercompany<br />
dividends, be fully tax-free.<br />
Negative taxable income<br />
If, after negative income has been offset against similar<br />
positive income at Investment Fund level, a negative overall<br />
amount is produced, this is carried forward at Investment<br />
Fund level. It can be offset against similar future positive<br />
taxable income at Investment Fund level in subsequent periods.<br />
Negative taxable income may not be directly allocated to<br />
investors. This means that such negative amounts will only<br />
be reflected in investors’ income or corporation tax assessments<br />
in the assessment period (tax year) in which the<br />
Investment Fund’s financial year ends, or in which the<br />
distribution for the financial year of the Investment Fund for<br />
which the negative taxable income has been offset at Investment<br />
Fund level takes place.<br />
Repayments of capital<br />
Repayments of capital (e.g. in the form of construction<br />
project interest) are not taxable.<br />
Capital gains at investor level<br />
Gains on the sale of units held as business assets are tax-free<br />
for business investors, provided that these consist of foreign<br />
rental income that has not yet accrued or been deemed to
have accrued, and realised and unrealised Investment Fund<br />
gains on foreign properties, insofar as Germany has waived<br />
taxation (gain on real estate).<br />
The investment company publishes the gains on real estate<br />
on each valuation date as a percentage of the value of the<br />
investment units.<br />
Furthermore, gains on the sale of units held as business assets<br />
are tax-free for incorporated entities (5% of profits are<br />
considered as non-deductible business expenses) if they consist<br />
of dividends that have not yet accrued or been deemed to<br />
have accrued, and realised or unrealised Investment Fund<br />
gains on domestic and foreign real estate corporations (gains<br />
on shares). These disposal gains are taxable at 60% for sole<br />
proprietorships or natural persons holding equity interests in<br />
commercial partnerships.<br />
The investment company publishes the gains on shares on<br />
each valuation date as a percentage of the value of the investment<br />
units.<br />
Non-residents for tax purposes<br />
If a non-resident for tax purposes holds units in distributing<br />
investment funds in a securities account at a German custodian<br />
(custody), no tax is withheld on interest, other income,<br />
disposal gains on securities, gains on forward transactions<br />
and foreign dividends if the investor furnishes proof of his<br />
or her non-resident status for tax purposes. The extent to<br />
which withholding tax on German dividends may be offset or<br />
reimbursed for a foreign investor depends on the double<br />
taxation agreement in place between the investor’s country of<br />
residence and the Federal Republic of Germany. If the custodian<br />
concerned is unaware of the investor’s non-resident<br />
status or if proof of this status is not furnished in good time,<br />
the foreign investor is required to apply for reimbursement of<br />
the tax withheld in accordance with section 37(2) of the<br />
Abgabenordnung (AO – German Tax Code) to the tax office<br />
at the place of business of the custodian.<br />
If a foreign investor holds units of accumulating investment<br />
funds in a securities account at a German custodian, the<br />
investor is reimbursed the 25% tax withheld plus the<br />
solidarity surcharge (unless it applies to domestic dividends)<br />
on furnishing proof of his or her non-resident status for tax<br />
purposes. If the application for reimbursement is made too<br />
late, the investor may apply for reimbursement in accordance<br />
with section 37(2) of the AO, as in the case where proof of<br />
non-resident status is furnished too late by investors holding<br />
units of distributing funds. This is the case if the income<br />
has been retained.<br />
Solidarity surcharge<br />
A 5.5% solidarity surcharge is levied on the tax withheld to be<br />
remitted when the Investment Fund distributes or retains<br />
income. The solidarity surcharge can be offset in the<br />
investor’s income tax and corporation tax return.<br />
If no tax is withheld or if tax withheld is reimbursed where<br />
income is retained – for example, because a sufficient<br />
exemption instruction, or non-assessment certificate has<br />
been presented or proof of non-resident status for tax purposes<br />
has been submitted – there is no requirement to remit<br />
the solidarity surcharge or, in the case of income being<br />
retained, the withheld solidarity surcharge is reimbursed.<br />
Church tax<br />
If income tax is already levied via the tax withheld by a<br />
German custodian (withholding agent), the church tax<br />
payable on it is levied as a surcharge to the tax withheld in<br />
accordance with the church tax rate for the religious<br />
community to which the investor belongs. For this purpose,<br />
persons subject to church tax must provide the withholding<br />
agent with a written application stating the religion to which<br />
they belong. In this application, married couples must also<br />
declare which portion of the couple’s overall investment<br />
income is attributable to each partner, so that the church tax<br />
can be allocated, retained and remitted in line with this ratio.<br />
If no allocation ratio is indicated, the allocation is made on a<br />
per capita basis.<br />
The deductibility of church tax as a special personal deduction<br />
is already recognised as reducing the tax burden when the<br />
tax is withheld.<br />
Foreign withholding tax<br />
Withholding tax is sometimes retained on the Investment<br />
Fund’s foreign income in the country of origin.<br />
The investment company may deduct the eligible withholding<br />
tax in the same way as an income-related expense at the level<br />
of the Investment Fund. In this case, the foreign withholding<br />
tax cannot be offset or deducted at investor level.<br />
If the investment company does not exercise its option to<br />
deduct the foreign withholding tax at Investment Fund level,<br />
the eligible withholding tax will be recognised as reducing<br />
the tax to be withheld.<br />
41
Taxation of interim profits<br />
Interim profits consist of income included in the sale or<br />
redemption price for interest received or accrued as well as<br />
gains on the sale of capital claims not listed in section 1(3)<br />
sentence 3 number 1 letters a) to f ) of the InvStG that have<br />
not yet been distributed or retained by the Fund and are<br />
therefore not yet taxable for the investor (comparable to<br />
accrued interest on fixed-income securities). Interim profits<br />
generated by the Investment Fund are subject to income tax<br />
when units are redeemed or sold by German tax residents.<br />
25% tax is withheld on interim profits (plus a solidarity<br />
surcharge and, if applicable, church tax).<br />
Interim profits paid on the purchase of units can be deducted<br />
as negative income for income tax purposes in the year of<br />
payment. They are already recognised as reducing the tax<br />
burden for the purposes of tax withholding. If the interim<br />
profits are not published, 6% of the payment made in<br />
connection with the redemption or sale of the investment<br />
unit must be recognised annually as interim profits.<br />
Interim profits may also be ascertained regularly from the<br />
account and income statements issued by the banks.<br />
EU Savings Tax Directive/Zinsinformationsverordnung<br />
The Zinsinformationsverordnung (ZIV – German Interest<br />
Information Regulation), which implements Council Directive<br />
2003 48/EC of 3 June 2003, OJ EU no. L 157 p. 38, is designed<br />
to ensure the effective cross-border taxation of interest<br />
income accruing to natural persons within the territory of the<br />
<strong>European</strong> Union. The <strong>European</strong> Union has signed agreements<br />
that largely correspond to the Savings Tax Directive<br />
with a number of third-party states (and in particular with<br />
Switzerland, Liechtenstein, the Channel Islands, Monaco<br />
and Andorra).<br />
Under these agreements, interest income that is credited by<br />
a German credit institution (which to this extent acts as a<br />
paying agent) to a natural person living in another country<br />
in Europe or certain third-party states is reported by the<br />
German credit institution to the Bundeszentralamt für<br />
Steuern (German Federal Central Tax Office) and by the latter<br />
ultimately to the foreign tax offices in the person’s country of<br />
residence.<br />
According to the ZIV, the investment company must specify<br />
for each domestic and foreign fund whether it is subject to<br />
the ZIV (“in scope”) or not (“out of scope”).<br />
The ZIV contains two material investment thresholds to<br />
assist in this assessment.<br />
If a maximum of 15% of the fund assets consist of receivables<br />
as defined by the ZIV, the paying agents, which ultimately<br />
42<br />
refer to the data reported by the investment company, do not<br />
have to submit reports to the Bundeszentralamt für Steuern.<br />
Otherwise, exceeding the 15% threshold triggers a requirement<br />
on the part of the paying agents to disclose the interest<br />
portion of the dividend to the Bundeszentralamt für Steuern.<br />
If the 40% threshold is exceeded, the interest portion contained<br />
in the redemption or sale of the fund units must be<br />
disclosed. If the fund is a distributing fund, the interest portion<br />
contained in the dividend must also be reported to the<br />
Bundeszentralamt für Steuern. If the fund is an accumulating<br />
fund, a disclosure is logically only made when fund units are<br />
redeemed or sold.<br />
The proportion of receivables held by <strong>Bouwfonds</strong> <strong>European</strong><br />
<strong>Residential</strong> as at 30 April 2009 was greater than 15% but less<br />
than 40%. The interest portion amounted to €0.0827 per<br />
unit.<br />
Property transfer tax<br />
The sale of units in the Investment Fund does not give rise to<br />
any property transfer tax.<br />
Notice:<br />
The information concerning taxation is based on the legal<br />
situation as it is known to stand at present. It is intended for<br />
those persons with unlimited liability regarding German<br />
income or corporation tax. However, no assurance can be<br />
given that the tax treatment will not change as a result of<br />
legislation, court rulings, or decrees issued by the tax<br />
authorities.<br />
Legal and tax risk<br />
Amendments to inaccurately determined bases of taxation<br />
for the Investment Fund for past financial years (e.g. as a<br />
result of external tax audits) may lead, in the case of a<br />
correction with negative tax consequences for investors, to<br />
investors having to carry the tax burden arising out of the<br />
correction for previous financial years even if they were not<br />
invested in the Fund at the time. Conversely, the situation<br />
may arise for investors in which they no longer benefit from<br />
a positive tax correction for the current and past financial<br />
years in which they were invested in the Fund because they<br />
have redeemed or sold their units before the corresponding<br />
correction is implemented.<br />
In addition, corrections to the tax data may result in taxable<br />
income and tax benefits being assessed for tax purposes in a<br />
different tax period than that actually applicable, which may<br />
have negative effects on individual investors.
Certification in Accordance with Section 5(1)<br />
Sentence 1 No. 3 of the InvStG Regarding the<br />
Preparation of the Tax Information<br />
To <strong>Catella</strong> <strong>Real</strong> <strong>Estate</strong> <strong>AG</strong> Kapitalanlagegesellschaft (hereinafter: the Company):<br />
The Company has appointed us, based on the records audited in accordance with section 44(5) of the InvG and the audited<br />
Annual Report of the <strong>Bouwfonds</strong> <strong>European</strong> <strong>Residential</strong> investment fund for the period from 1 May 2008 to 30 April 2009, to<br />
determine the tax information in accordance with section 5(1) sentence 1 nos. 1 and 2 of the InvStG and to submit a certificate<br />
in accordance with section 5(1) sentence 1 no. 3 of the InvStG as to whether the tax information complies with the<br />
provisions of German tax law.<br />
Our task is to determine the information in accordance with section 5(1) sentence 1 nos. 1 and 2 of the InvStG in accordance<br />
with the provisions of German tax law on the basis of the books/records and the other documents of the Company for the<br />
<strong>Bouwfonds</strong> <strong>European</strong> <strong>Residential</strong> Fund. Assessing the propriety of these documents and the information provided by the<br />
Company did not form part of our task.<br />
During the course of preparation of the reconciliation, the investments, income and expenses and their classification as<br />
income-related expenses, were examined for compliance with the relevant provisions of tax law. Insofar as the Company has<br />
invested funds in units of target funds, our task is limited solely to checking whether the tax information made available for<br />
these target funds was correctly adopted in accordance with the certifications supplied in accordance with section 5(1)<br />
sentence 1 no. 3 of the InvStG. We did not audit the corresponding tax information.<br />
The determination of the tax information in accordance with section 5(1) sentence 1 nos. 1 and 2 of the InvStG is based on<br />
the interpretation of the tax laws to be applied. Insofar as several possible interpretations exist, the decision was incumbent<br />
on the management of the Company. When preparing the information, we satisfied ourselves that the decision reached was<br />
justifiably supported in each case by explanatory memoranda to the legislation, court rulings, relevant specialist literature<br />
and published opinions of the fiscal authorities. Your attention is drawn to the fact that future legal developments and in<br />
particular new court rulings could necessitate a different assessment of the interpretation selected.<br />
On this basis, we have determined the tax information in accordance with section 5(1) sentence 1 nos. 1 and 2 of the InvStG<br />
in accordance with the provisions of German tax law.<br />
Munich, 17 July 2009<br />
Deloitte & Touche GmbH<br />
Wirtschaftsprüfungsgesellschaft<br />
Schulz ppa. Dirnaichner<br />
(Lawyer/Steuerberater) (Wirtschaftsprüfer/Steuerberater)<br />
43
Committees<br />
Investment Company<br />
<strong>Catella</strong> <strong>Real</strong> <strong>Estate</strong> <strong>AG</strong><br />
Kapitalanlagegesellschaft<br />
Alter Hof 5<br />
D-80331 Munich, Germany<br />
Phone +49-89-189 16 65-0<br />
Fax +49-89-189 16 65-66<br />
Commercial register: Munich Local Court<br />
Commercial register number: HRB 169 051<br />
Formation:<br />
18 January 2007<br />
Subscribed and paid-in capital as at 31 December 2008:<br />
€2.5 million<br />
Liable capital as at 31 December 2008:<br />
€3.1 million<br />
Supervisory Board<br />
Johan Ericsson (Chairman)<br />
<strong>Catella</strong> Financial Advisory AB, Sweden<br />
Group Chief Executive<br />
Ando Wikström (Deputy Chairman)<br />
<strong>Catella</strong> Financial Advisory AB, Sweden<br />
Deputy Chief Executive/CFO<br />
Anders Ek<br />
Independent Advisor<br />
Heimo Leopold<br />
Asset Manager<br />
Paul Vismans<br />
Independent Advisor<br />
Lennart Schuss (from 14 May 2009)<br />
<strong>Catella</strong> Corporate Finance AB, Sweden<br />
Chief Executive Officer<br />
44<br />
Managing Board<br />
Dr. Andreas Kneip (Spokesman)<br />
Bernhard Fachtner<br />
Shareholders<br />
<strong>Catella</strong> Property Fund Management AB, Sweden (94.5%)<br />
<strong>Catella</strong> Tellaca Holding AB, Sweden (5.5%)<br />
Custodian Bank<br />
Bayerische Hypo- und Vereinsbank <strong>AG</strong> (until 30 June 2009)<br />
Kardinal-Faulhaber-Strasse 1<br />
80333 Munich, Germany<br />
Subscribed capital as at 31 December 2008:<br />
€2,407,151 thousand<br />
Liable capital as at 31 December 2008:<br />
€26,929,015 thousand<br />
CACEIS Bank Deutschland GmbH (from 1 July 2009)<br />
Lilienthalallee 34-36<br />
80939 Munich, Germany<br />
Subscribed capital as at 31 December 2008:<br />
€5,113 thousand<br />
Liable capital as at 31 December 2008:<br />
€153,392 thousand<br />
Auditors<br />
PricewaterhouseCoopers <strong>AG</strong><br />
Wirtschaftsprüfungsgesellschaft<br />
Elsenheimerstrasse 33<br />
80687 Munich, Germany
Expert Committee<br />
<strong>Catella</strong> <strong>Real</strong> <strong>Estate</strong> <strong>AG</strong>’s Expert Committee, which will be responsible for only <strong>Bouwfonds</strong> <strong>European</strong> <strong>Residential</strong> with<br />
effect from 28 June 2009.<br />
Stefan Brönner<br />
Dipl.-Kfm./MRICS/Chartered Surveyor<br />
Publicly certified and sworn expert for the valuation of<br />
developed and undeveloped properties.<br />
Klaus-Peter Keunecke<br />
Dr.-Ing.<br />
Publicly certified and sworn expert for the valuation of<br />
developed and undeveloped properties. Chairman of the<br />
Expert Committee.<br />
Stefan Wicht<br />
Dipl.-Ing., architect<br />
Publicly certified and sworn expert for the valuation of<br />
developed and undeveloped properties.<br />
Florian Lehn<br />
Dipl.-Ing. (FH)<br />
Publicly certified and sworn expert for the valuation of<br />
developed and undeveloped properties.<br />
45
<strong>Catella</strong> <strong>Real</strong> <strong>Estate</strong> <strong>AG</strong> Kapitalanlagegesellschaft<br />
Alter Hof 5<br />
D-80331 Munich, Germany<br />
Phone: +49 (0)89 189 16 65 - 0<br />
Fax: +49 (0)89 189 16 65 - 66<br />
<strong>Bouwfonds</strong> <strong>Real</strong> <strong>Estate</strong> Services Deutschland GmbH<br />
Potsdammer Strasse 58<br />
10785 Berlin, Germany<br />
Phone: +49 (0)30 59 00 97 - 60<br />
Fax: +49 (0)30 59 00 97 - 89