Performance –made by MEC.Property Management, Center Management, Leasing Management, Project Development

Source: CBRE Research

5%

6%

7%

4%IV 2005 IV 2006 IV 2007 IV 2008 IV 2009 IV 2010 IV 2011 IV 2012

Transaction volumes2012 (accumulated):

9.15 bn euros

4%

34%

31%

31%

Source: CBRE Research

Retail park

Shopping center (B-location)

Shopping center (A-location)

1A-retail properties

Speciality store / Retail park Shopping center

1A-retail properties

Other retail

In Germany there are a wide variety of trade and retail locations, from specialty store agglomerations, all the way to premium shopping centers.

Retail parks in particular are more popular than ever, with both consumers and investors. As suppliers in regional and local areas, their ranges of products and services provide customers with all their daily needs under a single roof – generally with first-class transportation connections and large, free parking facilities right at the door.

The classical shopping center in a city center location is planned, built and managed as a single unit, a collection of retail and service businesses with a specific mix of industries and tenants, and a high degree of competency in the areas of fashion and lifestyle.

Usually, retail parks are located on the periphery of a city. The anchor tenants are large-area hypermarkets, entertainment electronics stores, fashion stores and home improvement stores. The tenant structure consists of discount-oriented suppliers selling a large proportion of basic consumables. Few restaurants are generally present, and then often only fast-food options. Occasionally, there are also entertainment options, fitness centers, petrol stations or car washes at these locations.

Retail parks are a safe investment for investors and a growth segment for retailers. Due to their specialisations, they offer special opportunities. Ultimately, almost a third of the entire retail property transaction volume in 2012 was invested in speciality stores and retail parks. These shopping centers are particularly interesting for investors because they are more frequently available and due to smaller transaction volumes more fungible than shopping centers in city center locations. New tenant groups are also increasingly interested in retail parks. Here they not only find attractive boundary conditions, but also space to expand and a continuous flow of customers.

The latest trend for shopping centers is the “hybrid mall”, or “speciality store-oriented shopping center”. This refers to shopping centers that combine the supplier function of the retail park with classical shopping center elements such as greater fashion com-petence, more appealing architecture, and modern restaurant concepts.

Retail parks in Germany – a market with potential.

Transaction volumes based on type:

Maximum returns retail properties:

With around 300 retail parks, the German market is highly fragmented. There are a large number of operators, but no conventional standards guaranteeing participants transparency and orientation in all management areas.

MEC METRO-ECE Centermanagement is recommended as an experienced service provider for property management, center management, leasing and project devel-opment. We create, retain and increase value for our clients and customers, intelli-gently and cost-consciously.

As the national market leader in this segment, we are currently responsible for man-aging a total of 38 centers. This means around 900,000 m2 of selling space, 1,350 retail units and 720 leasing partners, with an annual turnover of around 2.7 billion euros.

As an independent joint venture of the globally active METRO GROUP and the Euro-pean market leader for shopping centers, ECE, we have access to comprehensive expertise and an excellent network. No other center management company knows the retail trade as well as we do. We have a great deal of expertise in all fields of retail property management, and therefore make a decisive contribution to the success of our customers.

The clear positioning of MEC METRO-ECE Centermanagement as a specialist in retail parks, covering the entire spectrum of value creation, gives investors the neces-sary confidence in optimal revenue development. At the same time, as part of our network, the specialists of our parent companies are at your disposal at any time for any other questions you may have or services you may require.

MEC METRO-ECE Centermanagement: Better concepts for higher returns.

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· Commercial property management

· Technical property management

· Infrastructural property management

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· long-term and stable development

of rental income

· long-term and stable development

of property management costs

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· Center management

· leasing management

· project development

increase

· Turnover rents

· Short-term leasing /

Mall commercialisation

· Trade-mix

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Operating retail parks is just as complex as operating classical shopping centers. Only professional management of a retail park or specialty store-oriented shopping center can ensure its full economic potential is absorbed. MEC METRO-ECE Centermanage-ment has developed standards and tools, differentiating itself from other operators, and offering its investors clear added value.

Increase values with the MEC return gearbox.

The basic revenue of a retail park consists of the returns on the real estate – the interest from the leasing of shop space. Classical property managers often settle for that and do not tap the total return potential.

The retail and management competence of MEC offers each investor a considerably broader revenue base. This is because the retail business, i.e. the mix of industries and tenants, active mall marketing, provision of services, etc., represents a decisive second pillar for increasing the returns and value of a retail park.

Make use of the full potential.

b Commercial property management

We control the expenditures of every location, preventing rev-enues from narrowing. For this purpose, we take care of all commercial matters relating to the management of real estate, e.g. proper accounting in accordance with national and inter-national standards. Warranty tracking, insurance management and the control of legal cases are further services we provide.

Our clients are continuously kept informed about the econom-ic development and situation of the real estate through our SAP-based reporting system. Our transparent reporting sys-tem provides a comprehensive portfolio of reports and flexible analyses, ensuring the clarity and traceability of our activities.

We measure successful center management in terms of e.g.:• Total sales development• Frequency development • Tenancy revenue/m2 • Empty unit quotas • Incidental costs/m2

Microeconomic developments are also taken into considera-tion. In addition to this, surveys of customer and tenant satis-faction also supply qualitative values. Through the use of SAP, we guarantee auditing standards compliance, as well as com-prehensive communication with auditors and supervisory or inspection authorities.

Further services, always based on the latest SAP data:

• Leasing contract administration and tenant support • Debt collection, receivables management and payment transactions• Budget and liquidity planning • Incidental costs accounting• Investment planning• Financial accounting

b Technical property management

Refurbishing, repairing and optimising, the control and coordi-nation of the technical maintenance of retail properties is our daily business. Our service providers take care of the entire building and systems technology, both indoors and outdoors. In addition, experts take care of the acceptance testing and handover of construction projects. We coordinate, control and inspect the management of trade and retail properties, control the selection and contracting of service providers for outdoor facilities, heating, ventilation, sanitary systems, escalators, en-trance facilities etc., and act on behalf of the owners to ensure optimal care of the buildings and long-term value reten-tion. Compliance with and the coordination of safety-relevant and statutory regulations for periodic inspections and mainte-nance are likewise components of our scope of services, as is technical risk management.

b Infrastructural property management

We work with experts and service providers to develop a tailor-made management concept for each individual piece of real estate. Whether for waste management, building cleaning and gardening services, pest control or snow clearing services, we guarantee intelligent management, and ensure that all quality and hygiene standards are fulfilled. Through the use of the latest materials and equipment, we protect valuable resources. Safety and security services such as fire prevention, site security and traffic safety round off our range of services, and ensure that customers, tenants and employees are safe and secure at all times.

Efficient property management is the basis for good real estate returns. MEC provides the owner with all strategic and operative services from a single supplier – commercial, technical and infrastructural.

In the process, we develop and set (new) standards in an industry that has thus far been characterised by its limited uniformity. We naturally also ensure compliance with existing standards. Moreover, uniform contract documentation, whether for business procurement or for service providers, makes collaboration easier.

We always keep track of our customers’ costs, with the objective of reducing operating and maintenance costs; we increase economic profits through active control of service providers in the areas of facility management and energy, and by bundling orders to achieve economies of scale. We utilise statutory and contractual specifications as the basis for an efficient incidental costs assessment policy.

A customised dunning process is an essential component of our liquidity management service. An active receivables manage-ment system is also ensured, complete with payment monitoring and outstanding payments lists, all the way up to enforcement proceedings in court.

MEC property management: Cost-efficiency for higher returns.

Active center management teams onsite implement central technical and infrastructural property manage-ment services at a local level, and thus contribute to ensuring economic success. They plan, coordinate and monitor all necessary activities and the assignment of service providers. They ensure the maintenance of operational and functional capacity, as well as the security of the property. In addition, they also take care of the schedule planning and inspection of the personnel working in the property.

The second contribution to returns of the respective center management team consists in directing and controlling the local retail operation. Through their knowledge of the location, they make a major contribu-tion to the development of the center in regard to the market and competition situation. They also achieve additional revenues through active mall commercialisation, and supply added value for the center custom-ers. Contact with and provision of support to the tenants are further tasks of the center management.

In terms of marketing, MEC METRO-ECE Centermanagement builds on individual concepts to position a center as a preferred shopping location. The center manager ensures the implementation of the marketing concept. In addition, we also chair the tenants’ associations. The center managers work closely with local partners such as the city administration, the press, and various associations.

On the basis of comprehensive market observation as well as analysis, and using customer surveys and tenant analysis, we develop location strategies and leasing concepts. The development of the location includes not only marketing and advertising initiatives, but also the determination of leasing requirements, and the possibilities for trade mix. Alongside analysis, the focus is on implementing appropriate measures in close collaboration with the leasing team.

Requirement-oriented center management: increasing value and close to the customer.

In cooperation with the local center management team, the leasing department ensures the competitiveness of the location, and is thus able to open up further revenue potential. To this end, we take care of the ongoing development of the leasing concept, and securing new tenants in the case of expired tenancy contracts. The services profile also includes flanking measures con-nected with tenants moving into and out of the property.

MEC METRO-ECE Centermanagement supplies comprehensive leasing services, including analysis, leasing concepts and implementation. Access to one of the largest portfolios of tenants and the collaboration of qualified and experienced leasing managers allow the structural adaptation of the range of tenants to meet local requirements, and hence to successively increase rental revenues. This comprehensive leasing service is frequently associated with the necessity of refurbishment, expansion or construction of a new location.

Outstanding leasing competence that can truly claim to be holistic characterises our leasing management services. When leasing a real estate property, our focus is not only on the portfolio of the investor, but also on the added value that our entire portfolio offers to sustain and increase revenues for the investors. Our leasing concepts form the basis for an effective and targeted process of acquiring tenants, from the international to the local scale. In the field of leasing and releasing, too, our extensive experience ensures the continuous optimisation of the tenant and trade mix. We conduct the leasing contract nego-tiations, right up to the point at which the contract is signed. Our standardised leasing contracts guarantee a high degree of calculability and reliability here.

The timely interplay of comprehensive real estate management makes it easier to take advantage of opportunities and exploit return potential. Whether for restructuring or construction of new centers, project development offers comprehensive advisory, conception and implementation services. We have extensive expertise in refurbishment and expansion projects. We can offer an individual and adequate architecture for any requirements. And last but not least, we have a great deal of expertise and creative ideas in the fields of project development and new construction work.

Comprehensive leasing services: individual and location-specific.

Project development: utilise opportunities, exploit potential.

b Pfalz Center KaiserslauternThe attractiveness of the location was sustainably increased in a comprehensive refurbishment between May 2010 and October 2011. This involved the investment of twelve million euros. The mall and the retail areas were given a new layout. This resulted in the generation of twelve new rental spaces for attractive tenants such as Aldi, Ross-mann, Depot and Ernsting’s family. Established tenants like Real and Modepark Röther complete the tenant mix. The food court was redesigned and expanded. In addition, the facade of the center was given an entirely new visual appearance. A contemporary lighting concept now saves 70% of the previous power consumption for illumination. The center was introduced to the region in October 2011 under the new name “Pfalz Center”, and has established itself as a popular location.

What we do, we do successfully: recent reference projects.

In 2012, around six million euros were invested in the expansion of the Ostsee Park in Rostock/Sievershagen. The Ostsee Park is 55,000 m2 in size, having grown by a total of 4,130 m2 in selling space within one year. Through this work, MEC METRO-ECE Centermanagement met the continuously growing demand for greater variety in the range of products and services available, and the sustained high demand for rental space. Fifteen new tenants have moved into the extension, predominantly from the fashion sector, amongst others Esprit, Gerry Weber, Tom Tailor and Runners Point. With its expansion and improved mix of retailers, Ostsee Park has developed into a speciality shopping center (hybrid mall). Maritime flair flows through the center after the conversion. This includes a curvy outline reminiscent of waves, and green areas evoking the impression of dunes. This expansion has increased rental revenues by over 1 million euros.

b Ostsee Park Rostock

b Kurpfalz Center Mannheim The Mannheim district of Vogelstang is getting its own shopping center. By autumn 2013, the former Real hypermarket will have been transformed into an attractive new retail park with 27 shops and six restaurants. To this end, the 32,600 m2 retail prop-erty is being entirely revitalised and expanded, and will be known in future as the Kurpfalz Center. The Real store has reduced its selling space to just 10,000 m2. Specialty stores, shops and restaurants will benefit from the space thus freed up, and from the newly added spaces. Chains such as Aldi, dm-Drogeriemarkt, Toys"R"Us, Adler, Takko, Ernsting’s family, Gina Laura and Jeans Fritz have already signed their leasing contracts. Eight months before it opens, 85% of the center has already been leased.

MEC METRO-ECECentermanagement GmbH & Co. KG

Am Albertussee 140549 DüsseldorfGermany

Phone +49 (0) 211 30153-0 info@mec-cm.com

www.mec-cm.com