SEB ImmoPortfolio Target Return Fund · SEB ImmoPortfolio Target Return Fund Annual Report as of 31 December 2010 SEB INVESTMENT GMBH IP_JB_2010_01_Umschlag_E.indd 1 06.06.2011 15:56:07

SEB ImmoPortfolio Target Return FundAnnual Report as of 31 December 2010SEB INVESTMENT GMBH

IP_JB_2010_01_Umschlag_E.indd 1 06.06.2011 15:56:07 Uhr

2 | SEB ImmoPortfolio Target Return Fund

Table of Contents

Editorial 4

Concept and Investment Strategy 5

Opportunities and Risks of Open-ended Real Estate Funds 6

Risk Management 8

Real Estate Markets – An Overview 10

Results of the Fund in Detail 12

Structure of Fund assets 12

Liquid assets 12

Distribution 12

Investment performance 12

Income components 14

Portfolio Structure 15

Changes to the Portfolio 18

Outlook 21

Overview: Returns, Valuation and Letting 22

Development of Fund Assets 24

Condensed Statement of Assets 26

Regional Distribution of Fund Properties 30

Statement of Assets, Part I: Property Record 32

Statement of Assets, Part II: Liquidity Portfolio 43

Statement of Assets, Part III: Other Assets, Liabilities and Provisions, Additional Disclosures 44

Statement of Income and Expenditure 46

Application of Fund Income 48

Auditors’ Report 49

Tax Information for Investors 50

Bodies 59

Graphics

Geographical distribution of properties 15

Types of use of Fund properties 15

Remaining lease terms 16

Tenant structure by sector 17

Allocation of Fund properties by value class 17

Economic age distribution of Fund properties 17

IP_JB_2010_02_11_Bericht_E.indd 2 06.06.2011 14:02:14 Uhr

Annual Report as of 31 December 2010 | 3

Fund assets EUR 920.3 million

Total property assets (market values) EUR 1,554.7 million

thereof held directly EUR 1,298.9 million

thereof held via real estate companies EUR 255.8 million

Total Fund properties 1) 50

thereof under construction 7

thereof held via real estate companies 17

Changes during the period under review 1)

Purchases 2) 9

Additions 10

Letting rate (estimated gross rental) 3) 89.5%

Letting rate (estimated net rental) 89.8%

Net inflow of funds EUR 62.4 million

Distribution on 1 April 2011 EUR 34.3 million

Distribution per unit EUR 4.70

Income tax-free portion held as private assets EUR 3.0415

Portion liable to income tax held as private assets EUR 1.6585

Total property return 4) for the period 1 January 2010 to 31 December 2010 * 7.2%

Liquidity return 5) for the period 1 January 2010 to 31 December 2010 * 0.4%

Investment performance 6) for the period 1 January 2010 to 31 December 2010 * 5.3%

Investment performance 6) since Fund launch * 101.0%

Unit value/redemption price 7) EUR 126.17

Issuing price EUR 129.96

Total expense ratio (TER) 8) 0.98%

SEB ImmoPortfolio Target Return Fundat a glance as of 31 December 2010

1) The units held in partial ownership in the property under construction in 133 New Bridge Road, Singapore, that were acquired via five special purpose entities are counted

as separate properties in each case.2) Purchases comprise properties for which purchase contracts were signed during the period under review, regardless of whether these properties were also

added to the Fund during this reporting period.3) The estimated gross rental corresponds to the estimated net rental plus service charges.4) Based on the Fund’s average directly and indirectly held property assets financed by equity5) Based on the Fund’s average liquid assets6) Calculated according to the BVI method7) The redemption of unit certificates can be subject to a redemption fee of up to 3% of the unit value.8) Total costs as a percentage of average Fund assets within a financial year, calculated as of 31 December 2010.

* The return figures were not included in the audit for which the Auditors’ Report was issued.

This Annual Report and the Sales Prospectus available separately are to be handed to investors in SEB ImmoPortfolio Target Return Fund units until the publication of the

next Annual Report as of 31 December 2011. Following its publication, the Semi-annual Report must also be provided at the time of sale.

German Securities Code Number: 980231 ISIN: DE0009802314

Launched as SEB ImmoSpezial I, a special fund, on 15 October 2001; transformed into a mutual fund on 1 October 2004.

SEB Investment GmbH has resolved to adapt SEB ImmoPortfolio Target Return Fund’s investment principles dated 1 August 2010 so as to also allow it in future to acquire

equity interests in real estate companies that themselves hold equity interests in real estate companies.

At the same time, the Company resolved to implement amendments to the costs clause. Further information on the planned amendments is available on our website at

www.sebassetmanagement.de under Announcements.

Cäcilienkloster 2, 6, 8 and 10, Cologne, Germany



Editorial

Barbara A. Knoflach,

Siegfried A. Cofalka,

Choy-Soon Chua

and Axel Kraus

Dear investor,

In financial year 2010, the SEB ImmoPortfolio Target Return

Fund once again secured a leading position among open-

ended real estate funds with an impressive performance of

5.3%. Since being launched in October 2001, it has con-

stantly produced excellent positive results with low volatility

and an average annual return of 7.8%.

As a result of its outstanding performance, the Fund won

the “Specialist Funds (Germany)” category at the 2010 IPD

European Property Investment Award for the third year in a

row. This certifies the Fund as having the “highest average

total return relative to the appropriate sector benchmark

over three years in Germany”.

The attractiveness of the Fund again prompted new inflows

of funds in 2010. Investors entrusted the SEB ImmoPortfolio

Target Return Fund with a net amount of approximately

EUR 62.4 million in the period from 1 January to 31 Decem-

ber 2010, bringing the Fund’s total assets to EUR 920.3 mil-

lion in just under ten years.

In the period under review, the Fund’s management contin-

ued to build up the real estate portfolio with the acquisition

of four properties in Poland, Spain, Germany and the United

Kingdom. In addition, it increased its exposure in Asia by

entering the Singapore market, where it acquired an equity

investment in a shopping centre. All purchases were added

to the Fund in financial year 2010, together with a UK prop-

erty acquired at the end of 2009. This means that the SEB

ImmoPortfolio Target Return Fund’s portfolio contained a

total of 50 properties in 13 countries as of the reporting

date.

Thanks to the high quality of the Fund’s real estate portfolio,

its systematic expansion as part of the implementation of its

investment strategy and its proactive management, the SEB

ImmoPortfolio Target Return Fund is set to remain one of

the leading open-ended real estate funds for investors with

a medium risk-return profile in future.



The SEB ImmoPortfolio Target Return Fund is a global open-

ended real estate fund with a core plus investment strategy.

The Fund is aimed at investors who wish to invest relatively

large sums for the medium to long term in an indirect real

estate investment and to exploit the income potential

offered by the professional management of international

real estate investments.

In accordance with the investment strategy, the Fund’s

management is gradually building up a balanced portfolio in

terms of region and type of use, with the target return con-

cept aiming to offer reliable income while providing appro-

priate diversification. The focus of investments is on office

and logistics real estate in Europe, with the portfolio being

rounded off by retail properties and niche products such as

student housing in the USA or investments in Asia.

In accordance with the investment strategy, investments

have a mix of differing risk-return profiles. In order to

achieve this, the portfolio is supplemented by core and

value-added properties. The target return is set at portfolio

level.

Active management ensures continual portfolio optimisa-

tion: purchases and sales in established real estate markets

are combined with investments in growth markets in order

to achieve a balanced mix of potential returns and risk diver-

sification. In addition, selective measures continually safe-

guard the competitive strength of portfolio properties.

The SEB ImmoPortfolio Target Return Fund’s strategic

liquidity weighting is set to a low figure of between 5% and

10% of Fund assets to reduce the dilutive effect on the

return from real estate. This makes active liquidity manage-

ment necessary in order to synchronise inflows and outflows

of funds and real estate transactions. Fund marketing is

therefore performed in line with the principle of “cash on

demand only”.

A combined top-down/bottom-up investment process is

used to select properties. In the top-down approach, the

Fund’s management assesses the economic opportunities

and risks, as well as those relating to the locations of poten-

tial investments and their market prospects. In the case of

specific investment decisions, it analyses individual proper-

ties in terms of their location and the immediate environ-

ment, the building’s quality, the tenants and their credit-

worthiness (bottom-up approach).

An essential decision-making criterion when selecting a

property is the stable ongoing cash flow it generates. In

addition, the Fund’s management buys properties with the

potential for value appreciation. It incurs letting risks selec-

tively and consciously in order to realise appreciation gains.

It also selects markets where anti-cyclical investments

promise positive appreciation in value.

The average holding period for Fund properties is set at five

to seven years. Consequently, potential exit strategies

already play an important role at the stage when properties

are bought. For this reason, we have set up a provision of

100% for deferred taxes.

A target debt ratio (leverage) of up to 50% at Fund level is

one of the strategic parameters of the Fund concept. Loans

are used primarily for tax optimisation and to hedge cur-

rency risks. At the same time, debt finance must be carefully

aligned with the cash flows from the individual properties

and the Fund’s financial structure in order to achieve posi-

tive long-term leverage effects. Fixed interest rate periods

and loan maturities are aligned with the income structure

and planned holding period of the properties, expected

interest rate developments and the Fund’s performance.

The currency risk with property investments in foreign cur-

rencies is reduced by taking out loans in foreign currencies

and through forward exchange transactions. According to

statutory requirements, a maximum of 30% of Fund assets

can be subject to currency risks. The Fund’s management

ensures that foreign currency items are hedged in accord-

ance with statutory requirements and the risk profile of the

product.

Concept and Investment Strategy

Cäcilienkloster 2, 6, 8 and 10, Cologne, Germany



As with other capital investments, investments in open-

ended real estate funds hold both opportunities and risks

for the investor. Real estate investments are long-term and

income-oriented capital investments. Investment perform-

ance depends on a wide variety of legal, economic, tax-

related, real estate-specific and product-dependent factors.

Specific opportunities and risks of open-ended real estate funds as a capital investmentOpen-ended real estate funds invest money that is callable

in the short term in medium- to long-term real estate port-

folios. The following legal requirements have therefore been

introduced in order to protect investors:

This open-ended real estate fund must provide minimum •

liquidity of 5% of the Fund assets at all times in the form

of short-term liquid assets (such as bank deposits).

To cushion high outflows of funds, it is possible to take •

out loans amounting to up to 50% of the market values

of the properties, as well as short-term loans of up to

10% of the Fund assets. If the cost of debt is higher than

the property return, this reduces the Fund return (nega-

tive leverage effect); if the cost of debt is lower than the

property return, the Fund return will increase (positive

leverage effect).

The redemption of units can be suspended. •

Opportunities and Risks of Open-ended Real Estate Funds

In addition, the Fund management company has established

product-specific approaches tailored to specific target

groups for managing the risk of liquidity squeezes:

Sales information tailored to specific target groups•

(Pro)active sales and investor management•

Strategic liquidity management focusing on the liquidity •

ratio and the leverage ratio of Fund assets

Diversification of the real estate portfolio according to •

criteria such as size, age, type of use and location to

ensure that marketable properties are available in any

market situation

Recognition of capital gains tax provisions in accordance •

with the strategic holding period for properties.

In principle, the properties owned by an open-ended real

estate fund are the basis for its stability. However, real

estate income and values may fluctuate according to the

economic situation.

The return generated by the Fund also depends on develop-

ments in the cash flows from, and any appreciation in the

value of, the properties. The Fund’s return can develop posi-

tively or negatively due to market changes.

Trinity Park III, Ulica Domaniewska 49, Warsaw, Poland



Halle E, Strassenbahnring 6 – 18, Hamburg, Germany

Moreover, external factors (such as the closure of other mar-

ket players’ funds) may have a substantial impact on the

Fund’s liquidity situation.

General opportunities and risks of real estate invest-mentsReal estate investments are subject to risks that may have

an effect on the unit value of the Fund:

In any investment decision, political, economic and legal •

risks – including those posed by tax law – should be

noted, along with how transparent and well-developed

the real estate market in question is.

In decisions to invest outside the eurozone, the volatility •

of the national currency should be taken into considera-

tion as well. Exchange rate fluctuations and the costs of

currency hedging have an impact on the Fund’s return.

Any change in the quality of the location may have a •

direct effect on the lettability and current letting situa-

tion. If the location increases in attractiveness, lease con-

tracts can be signed for higher rents; however, in the

worst possible case, a decrease could mean lasting high

vacancy rates.

Building quality and condition also have a direct impact •

on the capacity of a property to generate income. The

condition of the building may require expenditures for

maintenance that exceed budgeted maintenance costs.

Investment costs required in addition may impact the

return over the short term, but may also be necessary to

achieve long-term positive development.

Risks posed by natural disasters (such as earthquakes •

and tornados) and by fire and storm damage are covered

worldwide by insurance if this is possible, reasonable

from a financial point of view and objectively necessary.

Vacancies and expiring leases can mean either earnings •

potential or risk. Properties with vacancies can deliber-

ately be purchased anticyclically to realise later value

increases. Regular observation of the markets invested

in, and the implementation of measures based on this

knowledge with a view to reacting in good time to market

movements, are crucial parts of the process. At the same

time, vacancies result in income shortfalls and increased

costs to enhance the attractiveness of the property for

rental.

The creditworthiness of tenants is also a significant risk •

component. Poor creditworthiness can lead to high out-

standings and insolvencies can lead to a total loss of

income. One of the aims of portfolio management is to

reduce dependencies on individual tenants or sectors.

The risks mentioned above are a selection. For a detailed

description of risks, please see the Sales Prospectus.



Risk management is a continuous, integral process that cov-

ers all areas of the business, comprising all of the measures

applied to systematically deal with risk. One of the key aims

of this process is identifying and mitigating any potential

risks at an early stage. The early identification of risk helps

create room for manoeuvre that can be used to help safe-

guard existing potential for success over the long term and

create new opportunities. The risk management process

established by SEB Investment GmbH consists of risk strat-

egy and the identification, analysis and assessment, man-

agement and monitoring, and communication and docu-

mentation of risks.

In line with the relevant legal provisions, a distinction is

made between the following main risk types:

Counterparty riskDefault by a securities issuer, tenant, or counterparty could

lead to losses for the Fund. Issuer risk describes the effect of

specific developments at an individual issuer that impact the

price of a security in addition to general capital market

trends. Default by tenants is countered through active port-

folio management and regular monitoring. Other measures

include credit rating checks and the avoidance to a large

extent of cluster risk in the rental segment.

Even when securities and tenants are carefully selected,

losses due to the financial collapse of issuers or tenants can-

not be ruled out. Counterparty risk comprises the risk that

the other party to an agreement will partially or fully default

on its obligation. This applies to all contracts signed for the

account of a fund, but particularly in connection with the

derivative transactions that are entered into, for example, to

hedge currency risk.

Interest rate riskThe liquidity portfolio is exposed to interest rate risk and

influences the Fund return. If market interest rates change in

relation to the rate applicable when the investment was

made, this will affect prices and yields and lead to fluctua-

tions. However, these price movements vary depending on

the investment duration. Fixed-income securities with

shorter maturities offer lower price risks than fixed-income

securities with longer maturities. By contrast, fixed-income

securities with shorter maturities generally have lower

returns than fixed-income securities with longer maturities.

Risk Management

Hamburger Welle, Lübecker Strasse 128 / Landwehr 2, Hamburg, Germany



Robert-Koch-Strasse 100, Ottobrunn, Germany

Liquidity was held in current account balances at banks dur-

ing the reporting period.

Currency riskIf the assets belonging to a fund are invested in currencies

other than the fund currency, the fund receives the income,

repayments and proceeds from such investments in the rel-

evant currency. If the value of this currency falls against the

fund currency, the value of the fund declines. In principle,

foreign currency items are largely hedged as part of a low-

risk currency strategy. Thus, in addition to taking out loans

in the relevant currencies, foreign currency items are

hedged using forward exchange transactions.

Real estate riskIn principle, the properties owned form the basis for open-

ended real estate funds. However, a large number of factors

can cause property values and income from properties to

fluctuate. In addition to general economic conditions, such

as the economic climate, political circumstances and tax

conditions, property-specific factors play a decisive role.

Any change in the quality of the location can affect lettabil-

ity and the current letting situation. If the attractiveness of a

location increases, leases can be signed at higher prices. If

its attractiveness declines, however, this can lead to long-

term vacancies in the worst case. In addition, the condition

of a building may mean maintenance costs need to be

incurred, which will reduce returns in the short term, but lay

the foundations for positive development in the long term.

While vacancies and expiring leases can pose a risk, they

can also be a source of earnings potential, particularly if

properties are deliberately purchased as an anti-cyclical

investment and the expected positive development materi-

alises. The Fund’s rental income may decline as a result of

vacancies or tenant defaults. Properties in certain locations

may become less attractive to tenants, pushing down the

rents achievable in the areas concerned. The properties

themselves may be damaged by fire, storms, or other

events. Property values may also decline owing to unex-

pected contamination from past use or construction

defects, for example. Equity interests in real estate compa-

nies, i.e. indirect real estate investments, may pose the risk

of changes to company or tax law, particularly abroad.

Market risks specific to real estate, such as vacancies, letting

rates, lease expiries and the performance of the real estate

portfolio, are regularly monitored. An appropriate depart-

ment is responsible for monitoring performance and for

control of performance components (e.g. returns on real

estate, returns on the liquidity portfolio, other income and

fees). A reporting system has been set up for the relevant

performance indicators.

Operational riskThe investment company is responsible for ensuring the

proper management of the Fund. It has made the appropri-

ate arrangements for this and implemented risk minimisa-

tion measures for all operational risks identified. The Fund’s

operational risks include legal and tax risks, as well as dam-

age caused by natural forces.

Liquidity riskUnlike exchange-traded securities, for example, real estate

cannot always be sold quickly. Depending on internal cash

flows, the Fund therefore holds liquidity over and above the

minimum required by law. In exceptional cases, however,

unit certificate redemptions may be suspended if unex-

pected outflows of funds cannot be covered by the available

liquidity and the required liquidity must first be obtained

through the sale of properties or borrowing, for example.



Lincolnshire Way, Doncaster-Armthorpe, United Kingdom

Dual-speed recoveryThe global economy bounced back from recession in 2010,

recording growth of 5%. It will continue to pick up in 2011

as well, and is set to grow by approximately 4.5%. Many

emerging markets and developing economies will continue

to see above-average growth rates and stronger inflationary

pressure. The recovery in the industrialised nations, with

the exception of certain export-driven countries such as

Germany and Sweden, will be more moderate, meaning that

high unemployment levels will decline only slowly. The pace

of growth in highly indebted countries will continue to be hit

hard.

Capital market environmentCapital market trends were mixed. After touching new all-

time lows in the second half of the year, interest rates expe-

rienced a trend reversal but remained at a low level. Access

to credit on the capital markets and in the banking sector

has improved almost everywhere. In addition, the stock

market environment was positive.

Recovery in the investment marketsGlobal investment activity in the real estate markets in 2010

improved substantially year-on-year in all regions. At the

same time, the drop in initial yields continued, albeit at dif-

ferent speeds in the different areas. Security remained at the

forefront of investment decisions, with investors focusing

strongly on prime properties in core markets. A shortage of

such products put additional pressure on yields.

The recovery on the transaction market is likely to continue

in 2011. One key driver for this is that prices are bottoming

out or are already picking up again in some markets.

Increased financing costs may also contribute to this trend

in the short term. Improved investor sentiment and the

recovery on the capital markets also suggest that the upturn

will continue, and are likely to more than offset longer-term

interest rate risks.

Rental markets – an overviewThe situation on the rental markets is starting to improve

following the usual time lag in comparison to general eco-

nomic trends. Rising take-up rates now reflect not only

moves designed to cut costs, but also and increasingly pri-

mary demand. Rental trends are still mixed and rent

increases were focused on early-cycle leaders or markets

experiencing supply shortages. Although new leases still

generally involved rental concessions and/or incentives,

their size is declining.

Generally speaking, the economic outlook suggests that the

turnaround in rents will occur sooner than expected – to the

extent that this has not already happened, as is the case in

some parts of Asia.

GermanyThe sharp upswing in the German economy is increasingly

having a knock-on effect on the labour market. The result-

ing demand for office space should drive up prime rents. Ini-

tial yields in the investment market declined slightly. Since

both prices and rents are likely to recover to more or less the

same extent, initial yields are expected to stabilise.

FranceThe recovery in France is also increasingly reaching the

labour market. As a result, prime rents in the office segment

are stabilising. Paris – which has been a key focus for secu-

rity-conscious investors – is quietening down after the rapid

rise in rents seen in 2010. The decline in initial yields seen in

the past few months is likely to continue, but at a slower

pace.

NetherlandsAs the “gateway to Europe”, the Netherlands are an attrac-

tive investment location, even if vacancies limit the potential

for rent increases in some markets. Transaction volumes on

the Dutch investment market increased in 2010 and prime

yields are stabilising after their recent decline.

United KingdomAs a cyclical leader, the United Kingdom was a strong focus

for investors in 2010. Interest was concentrated on London,

which recorded the highest transaction volumes worldwide.

The market is attractive for security-oriented investors as it

is the most liquid in Europe. In addition, the slump in con-

struction activity suggests that above-average rental

increases may be on the cards. In some cases prime yields

for core properties have already fallen back to 2007 levels,

although they are likely to stabilise at this low level.

Real Estate Markets – An Overview



Reporting date31 Dec. 2007

EUR thousand


EUR thousand


EUR thousand


EUR thousand

Properties 417,527 605,511 811,169 1,298,891

Equity interests in real estate companies 62,411 113,929 113,892 134,241

Liquidity portfolio 24,926 62,866 167,496 86,622

Other assets 48,678 56,505 72,488 111,212

Less: liabilities and provisions – 184,916 – 285,475 – 315,083 – 710,704

Fund assets 368,626 553,336 849,962 920,262

Number of units in circulation 2,963,736 4,433,448 6,785,405 7,293,788

Unit value (EUR) 124.37 124.80 125.26 126.17

Distribution per unit (EUR) 7.98 6.00 5.50 4.70

Date of distribution 17 March 2008 1 April 2009 1 April 2010 1 April 2011

Unit value as of 31 December 2010 EUR 126.17

Plus distribution on 1 April 2010 EUR 5.50

Minus unit value on 1 January 2010 EUR – 125.26

Investment performance EUR 6.41

Returnin %

Returnin % p. a.

1 year 5.3 5.3

3 years 18.9 5.9

5 years 37.7 6.6

Since launch 101.0 7.8

Structure of Fund assetsThe SEB ImmoPortfolio Target Return Fund reported a total

net inflow of funds of EUR 62.4 million in the reporting

period from 1 January to 31 December 2010. Fund assets

increased by EUR 70.3 million to EUR 920.3 million. The

number of units in circulation rose to 7,293,788.

Liquid assetsThe gross liquidity ratio as of the reporting date was 9.4%;

all liquid assets were held as demand deposits at the end of

the reporting period. The average liquidity ratio during the

last twelve months amounted to 16.0% of Fund assets. For

strategic reasons, it was kept relatively high for purchases in

the past financial year.

DistributionA total of EUR 34.3 million will be distributed for financial

year 2010. The distribution amounts to EUR 4.70 per unit. Of

this amount, EUR 3.0415 (64.7%) is tax-free for private

investors. Payment to the investors will be made on 1 April

2011. Further information on the distribution and the taxa-

ble results for units held as business assets may be found on

pages 48 and 50.

Results of the Fund in Detail

Note: Calculated according to the BVI method (without front-end load; distribu-

tions reinvested immediately). Historical performance data are no indication

of future performance.

* The tables and the explanatory text were not included in the audit for which the

Auditors’ Report was issued.

Investment performance *The Fund generated a total performance of 5.3% over the

reporting period, or EUR 6.41 per unit. Since the Fund was

launched on 15 October 2001, it has generated a cumulative

performance of 101.0%.

Further information on the liquidity portfolio, loans and pro-

visions for deferred taxes on capital gains (risk provisions)

can be found in the disclosures on the statement of assets

on page 28 onwards.

Development of the SEB ImmoPortfolio Target Return Fund

Return according to the BVI method *



Currency Loan volume(direct)in EUR

in % ofproperty

assets

Fixedinterest

rate term

Loan volume(equity

interests) in EUR

1)

in % ofproperty

assets

Fixedinterest

rate term

Loan volume(total)in EUR

in % ofproperty

assets

EUR loans (Germany) 172,489,950 11.1 1.8 years – – – 172,489,950 11.1

EUR loans (abroad) 218,465,000 14.0 2.8 years 18,500,000 1.2 1.4 years 236,965,000 15.2

USD loans – – – 75,335,534 4.8 4.0 years 75,335,534 4.8

NOK loans – – – 8,508,072 0.5 1.0 years 8,508,072 0.5

SGD loans – – – 25,575,135 1.6 3.8 years 25,575,135 1.6

GBP loans 253,415,602 16.2 4.7 years – – – 253,415,602 16.2

Total 644,370,552 41.3 2.2 years 127,918,741 8.1 3.4 years 772,289,293 49.4

Fixed interest rate term

EUR loansLoan volume

in EUR

USD loansLoan volume

in EUR

NOK loansLoan volume

in EUR

GBP loansLoan volume

in EUR

SGD loansLoan volume

in EUR

Total loansLoan volume

in EUR

under 1 year 116,854,950 14,588,562 – – – 131,443,512

1–2 years 97,840,000 – 8,508,072 – – 106,348,072

2–5 years 183,113,787 36,918,240 – 23,195,936 25,575,135 268,803,098

5–10 years 11,646,213 23,828,732 – 230,219,666 – 265,694,611

over 10 years – – – – – –

Total 409,454,950 75,335,534 8,508,072 253,415,602 25,575,135 772,289,293

Currency Open currency items as of reporting date

in % of Fund volume (incl. loans)

per currency zone

in % of Fund volumeper currency zone

Poland PLN 1,838,300 EUR 464,319 7.4 7.4

Norway NOK – 9,611,421 EUR – 1,230,620 – 16.2 – 16.2 2)

USA USD – 1,300,153 EUR – 971,191 – 2.5 – 2.5 2)

Malaysia MYR 8,601,757 EUR 2,083,789 4.3 4.3

Singapore SGD – 18,915 EUR – 11,022 0.0 0.0

United Kingdom GBP – 358,224 EUR – 415,468 – 0.1 – 0.2 2)

Total EUR – 80,193 0.0 0.0 3)

1) Based on equity interest held2) Overhedged

3) At the reporting date of 31 December 2010, hedges of Fund assets held in foreign

currency amounted to 100.0% of Fund assets.

Overview of loans as of 31 December 2010

Breakdown of loan volumes per currency by fixed interest rate period as of 31 December 2010

Overview of exchange rate risks as of 31 December 2010

Trinity Park III, Ulica Domaniewska 49, Warsaw, Poland



Germany Direct acquisitions

Abroad Direct acquisitions

AbroadEquity interests

Totalabroad

Total

I. Properties

Gross income 1) 6.8 6.3 8.5 6.8 6.8

Management costs 1) – 1.6 – 0.8 – 5.2 – 1.9 – 1.8

Net income 1) 5.2 5.5 3.3 4.9 5.0

Changes in value 1) – 0.9 2.9 – 1.0 2.0 1.1

Foreign income taxes 1) 0.0 – 0.4 – 0.8 – 0.5 – 0.3

Foreign deferred taxes 1) 0.0 0.1 – 0.2 0.0 0.0

Income before borrowing costs 1) 4.3 8.1 1.3 6.4 5.8

Income after borrowing costs 2) 4.8 12.9 – 2.8 8.7 7.3

Exchange rate differences 2) 3) 0.0 – 0.2 – 0.1 – 0.1 – 0.1

Total income in Fund currency 2) 4) 4.8 12.7 – 2.9 8.6 7.2

II. Liquidity 5) 6) 0.4

III. Total Fund income before Fund costs 7) 6.1

Total Fund income after Fund costs (BVI method) 5.3

1) Based on the Fund’s average property assets in the period under review2) Based on the Fund’s average property assets financed by equity in the period

under review3) Exchange rate differences include both changes in exchange rates and currency

hedging costs for the period under review.4) The total income in Fund currency was generated with an average share of Fund

assets invested in property and financed by equity for the period of 83.97%.

5) Based on the Fund‘s average liquid assets in the period under review6) The average share of Fund assets invested in the liquidity portfolio for the period

was 16.03%.7) Based on the average Fund assets in the period under review

* The table and the explanatory text were not included in the audit for which the

Auditors’ Report was issued.

Income components of Fund return in % from 1 January 2010 to 31 December 2010 *

Income components *Fund income comprises the return on the properties and on

the liquidity portfolio. The portfolio properties generated a

gross return of 6.8% during the period under review, based

on average property assets.

Management costs reduced this figure at the portfolio level

by 1.8%. Management costs for the equity interests

amounted to 5.2%. This is mainly due to properties in the

United States where high management costs are the norm.

In addition, marketing costs were incurred for the sale of the

residential units in Malaysia. Management costs in Poland

totalled 2.2%, as maintenance and tenant fit-out measures

were performed in two properties in Warsaw and the prop-

erty in Lodz in connection with letting activities.

The changes in value item is composed of changes in value

determined in the course of appraisals by experts and other

changes in value. The other changes in value item includes

changes in the carrying amounts of properties such as those

arising from construction and modernisation costs, as well

as capital gains from the sale of apartments in Kuala Lum-

pur, Malaysia. At 1.1% of average property assets, the return

on changes in value was positive. The largest proportion of

this change is attributable to the 43–45 Portman Square

property in London, as the market value of this building has

increased sharply due to the signing of a new long-term

lease. Write-downs in France (–2.9%), mainly in Herblay,

and Poland (–2.6%), primarily for the Szturmowa 2a pro-

perty in Warsaw, had a negative effect.

Foreign income taxes (taxes on surpluses generated abroad)

reduced the Fund’s return by 0.3% during the reporting

period.

The targeted use of debt finance and a strategic financing

ratio made it possible to generate positive leverage effects,

which led to an increase in the return on income after borrow-

ing costs to 7.3%. The negative effects in the United States

and Malaysia mentioned above impacted the equity inter-

ests and reduced income before borrowing costs to 1.3%.

Income after borrowing costs decreased further to – 2.8%

due to interest expenses. The above-mentioned mainten-

ance costs also resulted in income before borrowing costs

falling to 1.6% in Poland and in a decline in income after

borrowing costs to – 1.0% as a result of interest expenses.

The average debt ratios at the country level range from

0.0% (Austria and Malaysia) to 68.2% (USA).

Losses from exchange rate differences reduced income by

0.1%. In Norway, 16.2% of the foreign currency was over-

hedged as of the reporting date. On average, the hedging

ratio for this currency during the financial year was 99.6%

while the hedging ratio for all currencies at the reporting

date was 100.0%.

All in all, the Fund’s management once again generated

above-average results with a total property return of 7.2%

in financial year 2010. Investments in the liquidity portfolio

generated an average return of 0.4% due to market-related

factors. This results in a total return of 6.1% before Fund

costs.



Top properties

London, 43 – 45 Portman Square

London, 5 – 14 St. Paul’s Churchyard / 4–6 Dean’s Court

Las Rozas, Calle de Gabriel Garcia Márquez 1

Warsaw, Ulica Domaniewska 49

Cologne, Cäcilienkloster 2, 6, 8 and 10

Top tenants

Caja de Ahorros y Monte de Piedad Madrid, Las Rozas,

Calle de Gabriel Garcia Márquez 1

Cushman & Wakefield LLP, London, 43–45 Portman Square

Hewlett-Packard Polska Sp.z.o.o., Warsaw, Szturmowa 2 and 2a

Unilever, Warsaw, Ulica Domaniewska 49

Gesetzliche Unfallversicherung VBG, Körperschaft öffentlichen Rechts, Hamburg,

Friesenstr. 22

Germany

United Kingdom

Poland

Spain

USA

France

Singapore

Netherlands

Slovakia

Malaysia

Austria

Finland

Norway

Office

Industrial

(warehouses,

halls)

Residential

Retail/

catering

Car park

Hotel

Leisure

Other

Portfolio Structure

As of 31 December 2010, the portfolio comprised 17 proper-

ties held via equity interests and 33 directly held properties.

Of these, two directly held properties and five properties

held via equity interests are under construction. The Fund

has property assets totalling EUR 1,554.7 million, compared

with EUR 1,063.2 million at the end of 2009. The portfolio is

diversified across 13 countries.

Based on their market values, 72.9% of property assets

were invested abroad and 27.1% in Germany as of the

reporting date. Thus, the greatest regional concentration in

the portfolio was on Germany.

59.4% of property assets were invested in properties with

an economic age of no more than ten years. In terms of

types of use, based on the estimated net rental for the year,

the portfolio was dominated by offices (55.2%) and indus-

trial use (warehouses, halls), which accounted for 18.2%.

LettingThe Fund’s management signed 60 new leases for

11,500 m2 in the period from 1 January to 31 December

2010. In addition, 25 existing leases for 84,800 m2 were

extended, corresponding overall to 13.7% of the Fund’s

total estimated net rental (excluding the properties added

to the Fund in the period under review).

Basis: market values (incl. properties held via equity interests and properties under-

going construction/renovation)

Basis: By estimated net rental for the year

By rental space

(incl. properties held via equity interests, but not properties

undergoing construction/renovation

Geographical distribution of properties Types of use of Fund properties

27.1% (13)

26.0% (5)

12.4% (4)

9.9% (2)

7.1% (5)

4.4% (5)

2.8% (5)

2.3% (2)

2.3% (1)

2.1% (3)

1.4% (2)

1.2% (2)

1.0% (1)

55.2%

18.2%

38.9%

13.9%

17.1%

6.3%

4.0%

3.9%

0.0%

1.0%

1.0%

0.2%

0.2%

1.3%

1.2%

37.6%



2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021+

indefinite

Property Vacancy rate at property

level in %

Vacancy rate at Fund level

in %

Saint-Ouen L‘Aumône, 97 Avenue du Château 100.00 0.64Negotiations are currently being held with a potential tenant for the entire space.

Ottobrunn, Robert-Koch-Strasse 100 98.48 2.60The letting concept is bearing fruit; demand at this location is improving. Negotiations are currently being held with potential tenants to lease a large

proportion of the building.

Kuala Lumpur, 77 Jalan Raja Chulan 96.58 1.82The apartments in these new builds that are still in the portfolio will be sold off successively in accordance with the investment strategy.

Labège / Toulouse, Avenue de l’Occitane 52.07 0.45Despite promising negotiations with several potential tenants, no agreement could be signed due to the substantial supply of space available. The eco-

nomic upturn should ease the situation on the letting market in Toulouse in 2011.

Warsaw, Szturmowa 2 40.34 1.05A new lease for 4,350 m2 beginning on 1 May 2011 was signed. As part of this transaction, 260 m2 was let in the neighbouring building (Szturmowa 2a).

In addition, negotiations for a further 1,800 m2 are currently being held with two existing tenants. Interest from potential tenants has risen sharply and

the property is therefore expected to be fully let by the end of 2011.

Bratislava, Suché Mýto 1 36.94 0.77Letting activities have recently increased. Leases with two new tenants were signed in the second half of 2010, in contrast to the first six months of the

year. The new tenants will move into their offices at the beginning of 2011. The market situation and letting activities suggest that the market is picking

up and that the letting rate for the building can be increased significantly in financial year 2011.

Basis: estimated net rental for the year (incl. properties held via equity

interests, but not properties undergoing construction/renovation)

Remaining lease terms

Despite these successes, the letting rate for the SEB Immo-

Portfolio Target Return Fund as of the reporting date fell to

89.8% of the estimated net rental (– 5.7 percentage points

as against 31 December 2009) or 89.5% of the estimated

gross rental (– 6.0 percentage points). The average letting

rate during the period under review was 91.7% of the esti-

mated net rental (– 3.4 percentage points), or 91.5% of the

estimated gross rental (– 3.6 percentage points).

The decline in the letting rate was mainly due to expiring

leases in Germany and Poland. In Germany, the main tenant

of the property in Ottobrunn moved out in March 2010,

accounting for 2.5% of the vacancy rate. Demand at the

location has improved and negotiations are currently being

Letting situation of individual propertiesThe following part of the report on the letting situation pro-

vides a detailed overview of the properties with a vacancy

rate of over 33% of the estimated (gross) rental for the

prop erty as of the reporting date, 31 December 2010.

held with several prospective tenants for a large proportion

of the space. A further 1.7% of the vacancy rate is attribut-

able to the properties at Szturmowa 2 and 2a in Warsaw. A

major tenant moved out of both buildings in 2010. The first

new leases have already been signed but do not begin until

financial year 2011. As demand for the properties is high, a

large proportion of the space will be reoccupied by the end

of 2011.

In addition, the vacancy rate at the three property compa-

nies in Kuala Lumpur was included in the overall rate for the

first time in financial year 2010 in accordance with the BVI

guidelines, accounting for a total of 2.0%. The investment

strategy defined from the outset for these newly built luxury

apartments aims to sell the properties individually and con-

sciously accepts vacancies.

At present, 59.9% of the leases have a term of more than

five years and therefore safeguard the SEB ImmoPortfolio

Target Return Fund’s stability and earnings power.

The terms and staggered durations of the leases are an

important risk management instrument at the portfolio

level. This means that, when making decisions on new

investments, the contribution that individual properties

would make to the lease structure is explicitly taken into

consideration. At the same time, expiring leases offer the

chance to benefit from positive market trends and asso-

ciated increases in rents.

For further information on the portfolio structure, please

refer to the section entitled “Overview: Returns, Valuation

and Letting” on pages 22 and 23.

3.5%

10.2%

7.1%

11.4%

7.9%

5.9%

3.8%

1.4%

6.9%

3.2%

25.5%

13.2%



by rental space

Consumer goods industry and retail

Automotive and transport

Banks and financial services providers

Technology and software

Engineering, raw materials extraction and processing

Utilities and telecommunications companies

Chemical and pharmaceutical industry

Construction companies

Public authorities, associations and educational institutions

Hotels and catering

Media and entertainment

Management consulting, legal and tax advisory

Insurance companies

Other sectors

by total estimated net rental

Consumer goods industry and retail

Banks and financial services providers

Automotive and transport

Utilities and telecommunications companies

Management consulting, legal and tax advisory

Technology and software

Construction companies

Chemical and pharmaceutical industry

Public authorities, associations and educational institutions

Hotels and catering

Media and entertainment

Engineering, raw materials extraction and processing

Insurance companies

Other sectors

Basis: market values (incl. properties held via equity interests, but not properties

undergoing construction/renovation)

Basis: market values (incl. properties held via equity interests, but not properties

undergoing construction/renovation)

Economic age distribution of Fund propertiesAllocation of Fund properties by value class

Number of tenants in brackets (incl. properties held via equity interests, but not properties undergoing construction/renovation)

Tenant structure by sector

34.8% (64)

12.8% (14)

11.0% (27)

3.8% (20)

3.4% (3)

3.3% (24)

2.1% (5)

1.9% (8)

1.6% (6)

1.6% (14)

1.5% (6)

0.9% (6)

1.4% (17)

19.9% (2,556)

22.9% (64)

21.8% (27)

7.4% (14)

4.4% (24)

4.3% (17)

4.1% (20)

3.3% (8)

3.1% (5)

2.4% (6)

2.1% (14)

2.1% (6)

1.4% (6)

2.0% (3)

18.7% (2,556)

(14 properties) 27.2%

up to 5 years

5.3% (3 properties)

15 to 20 years

33.7% (12 properties)

10 to 15 years

1.6% (1 property)

more than 20 years


5 to 10 years

(5 properties) 2.2%

up to EUR 10 million


EUR 50 < 100 million


EUR 100 < 150 million


EUR 10 < 25 million


EUR 25 < 50 million



In financial year 2010, the Fund management company

acquired nine properties that have already been added to

the Fund. In addition, the 43–45 Portman Square property

in London, which was purchased in December 2009, was

transferred to the portfolio in 2010. Additional residential

units in the property companies in Kuala Lumpur were sold

in the period under review. The purchase contract for the

Arkonska Business Park development project (Phase II) in

Gdansk was reversed after the seller failed to attain a letting

rate of 70% by 31 December 2010, a condition specified in

the purchase contract.

Purchases and additions

Poland – Warsaw, Ulica Domaniewska 49In March 2010, a third office building in Warsaw was ac-

quired for the SEB ImmoPortfolio Target Return Fund. Tri-

nity Park III has some 32,400 m2 of rental space and

869 parking spaces and was certified as a “green building”

with a “very good” BREEAM classification. When fully let,

the total investment volume for the property is in the region

of EUR 93 million.

Changes to the Portfolio

Chinatown Point, 133 New Bridge Road, Singapore

Spain – Las Rozas, Calle de Gabriel Garcia Márquez 1Following a sale and leaseback transaction worth a total of

EUR 111.9 million in May 2010, the six-storey office building

in Las Rozas-Madrid is now part of the Fund’s portfolio. The

property, which has total space of around 43,700 m2 and

537 parking spaces, is fully let under a 30-year lease to the

oldest savings bank in Spain, Caja de Ahorros y Monte de

Piedad. This financial services provider, the fourth-largest in

the country, is better known as Caja Madrid.

United Kingdom – London, 5–14 St. Paul’s Churchyard / 4–6 Dean’s CourtIn June 2010, a high-quality office and commercial building

in London was added to the SEB ImmoPortfolio Target

Return Fund portfolio. The property, which boasts a fully

renovated facade dating back to the early 20th century, was

completed in 2005 and has approximately 12,200 m2 of ren-

tal space. Total investment costs for the property amounted

to the equivalent of approximately EUR 134.3 million.

Germany – Munich, Am Gleisdreieck 8A newly constructed commercial property dating from 2009

was acquired in August 2010. With an estimated 10,641 m2

of rental space, it is leased in full to Praktiker Bau- und

Heimwerkermärkte AG until 2027. The total investment

volume is in the region of EUR 20 million.

Singapore – Singapore, 133 New Bridge RoadThe Fund entered the Singapore market as part of a joint ven-

ture, increasing the SEB ImmoPortfolio Target Return Fund’s

exposure in Asia. In October, it acquired a 30% stake in China-

town Point, a five-storey shopping mall with office space, for

the equivalent of EUR 63.4 million; the property is held via five

property companies. Built in 1980, the centre has total rental

space of around 16,500 m2 and 361 parking spaces and is

located near the two main financial districts, Raffles Place and

Tanjong Pagar. The location also boasts a number of traditional



Purchases 1): Directly held properties in eurozone countries

Country Postcode City Street Transfer of risks and rewards of ownership as of

Purchase price in millions

Market value 2)

in millionsTotal investment costs 3) in millions

Germany 81243 Munich Am Gleisdreieck 8 08/2010 EUR 19.2 – EUR 20.4

Spain 28230 Las Rozas Calle de Gabriel Garcia Márquez 1 05/2010 EUR 108.0 EUR 117.0 EUR 111.9

Purchases 1): Directly held properties in countries with other currencies



Market value 2)


United

Kingdom

EC4 London 5–14 St. Paul’s Churchyard /

4–6 Dean’s Court

06/2010 GBP 105.0 GBP 109.6 GBP 111.0

Poland 02-672 Warsaw Ulica Domaniewska 49 03/2010 EUR 90.8 – EUR 92.7

Purchases 1): Equity interests in real estate companies in countries with other currencies

Country Domicile Company Equity interest held

Transfer of risks and rewards of ownership as of


Market value 2)


Singapore Singapore Perennial Chinatown Point LLP 4) 30.00000% 10/2010 SGD 40.8 – SGD 43.5

Singapore Singapore CP1 Pte. Ltd. Singapore 100.00000% 10/2010





Additions: Directly held properties in countries with other currencies



Market value 2)


United

KingdomW1A3BG London 43–45 Portman Square 03/2010 GBP 107.0 GBP 123.9 GBP 114.9

Sales 1): Equity interests in real estate companies in countries with other currencies

Country Domicile Company Equity interest held

Transfer of risks and rewards of ownership as of


Market value 2)


Malaysia Kuala Lumpur Immo Pavilion 1 SDN BHD 5) 100.00000% 01 – 12/2010 MYR 23.6 – MYR 23.8

Malaysia Kuala Lumpur Immo Pavilion 2 SDN BHD 5) 100.00000% 01 – 12/2010 MYR 37.4 – MYR 37.8

1) Purchases/sales only comprise properties that were added to the Fund/recog-

nised as disposals during the period under review. 2) In accordance with section 79(1) sentence 1 of the InvG, properties are recog-

nised at their purchase price in the year in which they are added to the Fund. In

derogation of this, the market value may be used where the conditions of section

79(1) sentence 5 of the InvG are met.3) At the time of acquisition.

4) Perennial Chinatown Point LLP owns 100% of the property companies, CP1 –

CP5 Pte. Ltd. Singapore.5) Individual residential units belonging to the companies in Kuala Lumpur are being

sold successively. Twenty-three residential units in Immo Pavilion 1 SDN BHD, 26

in Immo Pavilion 2 SDN BHD and 79 in Immo Pavilion 3 SDN BHD were disposed

of in the period under review. The information provided relates solely to the units

disposed of.

shops that attract a large number of tourists. The property will

be renovated extensively by the beginning of 2013, after which

it will consist of around 19,045 m2 of retail and office space.

Additions

United Kingdom – London, 43–45 Portman SquarePurchased in December 2009 for the equivalent of approxi-

mately EUR 128 million, this property was added to the Fund

in March 2010. A corner building in the West End of London,

it was built behind the original facade in 1998 and offers

some 10,420 m2 of rental space and 14 parking spaces. It is

let in full to four office users and three retailers.

Sales and disposals

Malaysia – Kuala Lumpur, 77 Jalan Raja ChulanThe strategy in all three property companies consists of sel-

ling off the unlet newly constructed residential units indivi-

dually. Purchase contracts had been signed for 142 of the

163 units by the reporting date; of these, 128 had already

been transferred by the same date. This means that some

87% of the apartments had been successfully marketed

by the reporting date. Preliminary contracts exist for three

further apartments. The proceeds of sale will accrue succes-

sively to the Fund once the apartments have been transfer-

red to the purchasers.



Properties under construction – in portfolio

City Street Use Planned area in m2

Planned trans-fer of risks and rewards of ownership/completion

Construction status Letting rate

France

Aix-en-Provence Avenue Galilée Office 11,476 Q2 / 2011 The five parts of the building have

been completed to the finished shell

stage, leasehold improvements are

pending for 38% of the total space.

62%

United Kingdom

London 1 Threadneedle Street Office 4,835 Q1 / 2012 The measures are currently at the

planning stage. Construction is sched-

uled to begin in April 2011 once all

tenants have moved out.

98%

Singapore

Singapore 133 New Bridge Road Office/

retail

19,045 Q1 / 2013 The measures to be taken for the pro-

ject, which is held via five property

companies, are currently at the plan-

ning stage. Construction is scheduled

to begin in Q2/2011.

86%

Properties under construction – not yet in portfolio *

City Street Use Planned area in m2

Planned trans-fer of risks and rewards of ownership/completion

Construction status Letting rate

Malaysia

Subang Jalan Terbang Retail 39,484 Q1 /2011 Work is largely completed. Accept-

ance by the authorities is expected in

February 2011.

22%

Development projects in the financial year from 1 January 2010

to 31 December 2010

Citta Mall, Jalan Terbang, Klang Valley, Subang, Malaysia

* The table was not included in the audit for which the Auditors’ Report was issued.



Outlook

The SEB ImmoPortfolio Target Return Fund has been among

the most successful open-ended real estate funds for years.

Due not only to the high quality of its real estate portfolio,

but also to its investment strategy and active portfolio

management, it is ideally positioned to continue its attrac-

tive performance as a “core plus” product.

The two new acquisitions in London promise attractive in-

creases in value given that the purchases were made early

on in the market cycle. In addition, the modernisation of the

1 Threadneedle Street property in London that was originally

scheduled for 2013 can already begin this year owing to the

early termination of the lease with the main tenant. This will

allow the Fund to place an exquisitely refurbished, prime-

location building on a growing tenant market.

Another example of strategic market entry combined with

active asset management is the partial acquisition of the

shopping centre in Singapore. Modernisation measures are

expected to increase the letting rate and income in the next

two years, allowing the potential value added to be realised.

In February, the German Bundestag (lower house of parlia-

ment) passed the new Anlegerschutzgesetz (Investor Protec-

tion Act). This legislation introduces a series of new regulati-

ons as of 2013 for open-ended real estate funds, such as a

one-year period of notice for investors, a two-year holding

period for new investors and a maximum redemption of

EUR 30,000 per investor per six-month period, regardless of

the notice periods. The new act creates a stable framework

and will therefore help renew confidence in open-ended real

estate funds as an asset class.

Low interest rates, the corrections seen to initial returns and

the easing of the credit markets are currently combining to

create an attractive investment climate. In this environment,

we aim to gradually expand the SEB ImmoPortfolio Target

Return Fund’s portfolio by adding both core and value-

added properties.

In addition, the recovery of the first rental markets is provid-

ing positive momentum for new leases and lease renewals.

Given this situation, we firmly believe that the SEB Immo-

Portfolio Target Return Fund will remain a high-quality prod-

uct offering excellent returns for long-term asset accumula-

tion in 2011. Thank you for the confidence you have shown

in us.

SEB Investment GmbH

Knoflach Cofalka

Chua Kraus

Frankfurt am Main, March 2011



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Key return figures (in % of average Fund assets) 1) *

I. Properties

Gross income 2) 6.8 6.1 6.6 6.4 6.3 6.5 8.5 6.8

Management costs 2) – 1.6 – 0.1 – 0.5 – 2.2 – 0.7 – 1.1 – 5.2 – 1.8

Net income 2) 5.2 6.0 6.1 4.2 5.6 5.4 3.3 5.0

Changes in value 2) – 0.9 7.5 – 2.9 – 2.6 2.1 1.6 – 1.0 1.1

Foreign income taxes 2) 0.0 – 0.3 – 0.9 – 0.4 – 0.4 – 0.3 – 0.8 – 0.3

Foreign deferred taxes 2) 0.0 0.0 0.4 0.4 – 0.2 0.1 – 0.2 0.0

Income before borrowing costs 2) 4.3 13.2 2.7 1.6 7.1 6.8 1.3 5.8

Income after borrowing costs 3) 4.8 28.6 2.1 – 1.0 10.6 9.3 – 2.8 7.3

Exchange rate differences 3) 4) 0.0 – 0.2 0.0 – 0.3 0.0 – 0.1 – 0.1 – 0.1

Total income in Fund currency 3) 5) 4.8 28.4 2.1 – 1.3 10.6 9.2 – 2.9 7.2

II. Liquidity 6) 7) 0.4

III. Total Fund income before Fund costs 8) 6.1

Total Fund income after Fund costs (BVI method) 5.3

Net asset information (weighted average figures in EUR thousand) 1) *

Directly held properties 408,383 321,172 65,794 168,116 176,329 1,139,794 0 1,139,794

Properties held via equity interests 0 0 0 0 0 0 236,948 236,948

Total properties 408,383 321,172 65,794 168,116 176,329 1,139,794 236,948 1,376,742

of which equity-financed property assets 278,501 119,061 45,574 84,913 90,406 618,455 120,572 739,027

Loan volume 129,882 202,111 20,220 83,203 85,923 521,339 116,376 637,715

Liquidity 96,928 3,444 2,581 4,316 2,762 110,031 31,033 141,064

Fund volume 375,429 122,505 48,155 89,229 93,168 728,486 151,605 880,091

Information on changes in value (at the reporting date in EUR thousand)

Portfolio market values (expert opinions) 9) 420,268 409,060 68,470 188,881 212,150 1,298,829 255,809 1,554,638

Portfolio rental valuations (expert opinions) 10) * 26,231 24,165 4,848 13,715 13,929 82,888 22,212 105,100

Positive changes in value acc. to expert opinions 11) 200 25,338 20 0 9,000 34,558 1,697 36,255

Other positive changes in value 12) 459 105 0 15 0 579 0 579

Negative changes in value acc. to expert opinions 11) – 4,120 – 122 – 1,930 – 4,200 – 5,200 – 15,572 – 6,500 – 22,072

Other negative changes in value 12) – 42 0 0 0 0 – 42 – 9,092 – 9,134

Total changes in value acc. to expert opinions 11) – 3,920 25,216 – 1,910 – 4,200 3,800 18,986 – 4,803 14,183

Total other changes in value 12) 417 105 0 15 0 537 – 9,092 – 8,555

Addition (capital gains tax) and reduction in

accordance with section 27(2) no. 2 sentence 7 of

the InvRBV 0 0 306 618 – 365 559 – 374 185

Total changes in value 13) – 3,503 25,321 – 1,604 – 3,567 3,435 20,082 – 14,269 5,813

Overview: Returns, Valuation and Letting

1) The weighted average figures for the financial year were calculated using 13

month-end values (31 December 2009 to 31 December 2010).2) Based on the Fund’s average property assets in the period under review3) Based on the Fund’s average property assets financed by equity in the period

under review4) Exchange rate differences include both changes in exchange rates and currency

hedging costs for the period under review.5) The total income in Fund currency was generated with an average share of Fund

assets invested in property and financed by equity for the period of 83.97%.6) Based on the Fund’s average liquid assets in the period under review7) The average share of Fund assets invested in the liquidity portfolio for the period

was 16.03%.8) Based on the average Fund assets in the period under review9) Properties under construction are included in the amount of their construction

costs. Wherever portfolio properties were reclassified as properties under con-

struction, they are included at the market value plus construction costs paid.10) Rental valuations (expert opinions) are defined as the gross profit from rental

determined by experts. Gross profit in this case equates to the sustainable net

basic rent estimated by the experts.11) Total changes in market values established by experts12) Other changes in value comprise changes in carrying amounts such as purchase

costs and purchase price settlements subsequently included in the carrying

amounts.13) The difference between the overall change in value and the amounts recognised

in the development of Fund assets is attributable to the net income from equity

interests.

The “Changes in value” item in the “Key return figures” table also includes capital

gains. This reflects the sales made during the period under review. The “Informa-

tion on changes in value” table only includes data for properties held in the Fund as

of the reporting date of 31 December 2010. For this reason, the proceeds of the

sales are not presented here.

* This table or line was not included in the audit for which the Auditors’ Report was

issued.



Ge

rma

ny

Fra

nce

Un

ite

d K

ing

do

m

Ne

the

rla

nd

s

Au

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a

Po

lan

d

Sp

ain

To

tal d

ire

ct

inv

est

me

nts

Eq

uit

y in

tere

sts

(FIN

. MY

. N.

SK

. US

A)

To

tal

Letting information (in % of estimated net rental for the year) 1) *

Office 15.3 1.7 13.6 0.2 0.0 11.7 7.2 49.7 5.5 55.2

Retail/catering 4.5 0.0 1.2 0.0 0.0 0.3 0.0 6.0 0.3 6.3

Hotel 1.0 0.0 0.0 0.0 0.0 0.0 0.0 1.0 0.0 1.0

Industrial (warehouses, halls) 2.5 1.6 6.4 2.6 1.3 0.2 2.4 17.0 1.2 18.2

Residential 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 13.9 13.9

Leisure 0.2 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.0 0.2

Car park 1.8 0.0 0.1 0.0 0.0 1.4 0.0 3.3 0.6 3.9

Other 1.1 0.1 0.0 0.0 0.0 0.1 0.0 1.3 0.0 1.3

% of total annual rental income 26.4 3.4 21.3 2.8 1.3 13.7 9.6 78.5 21.5 100.0

Vacancy rate (in % of estimated net rental for the year) 1) *

Office 2.0 0.4 0.0 0.0 0.0 1.6 0.0 4.0 1.4 5.4

Retail/catering 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Hotel 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Industrial (warehouses, halls) 0.4 0.6 0.1 0.0 0.0 0.0 0.5 1.6 0.0 1.6

Residential 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 2.4 2.4

Leisure 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Car park 0.2 0.0 0.0 0.0 0.0 0.1 0.0 0.3 0.4 0.7

Other 0.0 0.1 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.1

Portion of total vacancies 2.6 1.1 0.1 0.0 0.0 1.7 0.5 6.0 4.2 10.2

Letting rate (at the reporting date) in % of

the estimated net rental for the year and country 1) 89.8 69.5 99.7 100.0 100.0 87.6 94.8 92.4 80.4 89.8

Letting rate (at the reporting date) in % of

the estimated gross rental for the year and country 2) 89.7 68.9 99.7 100.0 100.0 87.0 94.9 91.8 80.5 89.5

Remaining lease terms (in % of estimated net rental for the year) 1) *

indefinite 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.4 12.8 13.2

2011 0.7 0.0 0.0 0.0 0.0 0.2 0.7 1.6 1.9 3.5

2012 6.7 0.0 0.0 1.2 0.0 1.5 0.0 9.4 0.8 10.2

2013 0.8 0.1 2.3 1.7 0.0 0.1 1.5 6.5 0.6 7.1

2014 1.8 1.6 0.0 0.0 0.0 5.6 0.0 9.0 2.4 11.4

2015 3.0 0.7 0.0 0.1 1.0 2.9 0.0 7.7 0.2 7.9

2016 1.2 0.1 1.8 0.0 0.0 2.8 0.0 5.9 0.0 5.9

2017 0.1 0.0 2.7 0.0 0.5 0.0 0.0 3.3 0.5 3.8

2018 1.2 0.2 0.0 0.0 0.0 0.0 0.0 1.4 0.0 1.4

2019 6.5 0.1 0.2 0.0 0.0 0.1 0.0 6.9 0.0 6.9

2020 1.1 0.0 1.9 0.0 0.0 0.2 0.0 3.2 0.0 3.2

2021 + 2.8 0.0 14.7 0.0 0.0 0.0 8.0 25.5 0.0 25.5

Proportion of estimated net rental for the year 26.3 2.8 23.6 3.0 1.5 13.4 10.2 80.8 19.2 100.0

1) Based on the ratio of the estimated net rental for the year from directly or indi-

rectly held properties to the total estimated net rental for the Fund. In the case of

the equity interests, the estimated rental is included in proportion to the equity

interest held.2) The estimated gross rental comprises net rental (“basic rent”) along with service

charges to be paid by the tenant, e.g. heating, power, cleaning and insurance,

which are represented by the advance service charge payments.

* The table was not included in the audit for which the Auditors’ Report was issued.



EUR EUR EUR

I. Fund assets at start of the financial year on 1 January 2010 849,961,815.60

1. Distribution for the previous year – 37,574,993.50

of which distribution in acc. with Annual Report – 37,319,727.50

of which adjustment item for units issued/redeemed up

to the distribution date – 255,266.00

2. Net inflow of funds 62,396,432.72

a) Inflow of funds from sale of units 124,616,057.01

b) Outflow of funds from redemption of units – 62,219,624.29

3. Equalisation paid – 654,195.79

4. Ordinary net income 33,443,844.22

of which equalisation paid 654,195.79

4a. Amortisation of transaction costs – 1,522,112.53

of which for properties – 1,488,673.21

of which for equity interests in real estate companies – 33,439.32

5. Realised gains

on forward exchange transactions 456,325.93

of which in foreign currency 0.00

Miscellaneous 1,147,005.00

of which in foreign currency 0.00 1,603,330.93

6. Realised losses

on forward exchange transactions – 23,942,418.01


Miscellaneous – 577,688.15

of which in foreign currency 0.00 – 24,520,106.16

7. Net change in value of unrealised gains/losses

on properties 20,081,513.01

of which in foreign currency 25,321,058.66

on equity interests in real estate companies – 5,242,622.38

of which in foreign currency – 872,817.78

on forward exchange transactions 3,934,613.05


Changes in exchange rates 18,354,618.14 36,110,584.39

II. Fund assets at end of the financial year on 31 December 2010 920,262,137.31

Development of Fund Assets from 1 January 2010 to 31 December 2010

IP_JB_2010_24_25_Fondsvermoegen_E.indd 24 06.06.2011 14:38:18 Uhr


The development of Fund assets shows which transactions

entered into during the period under review are responsible

for the new assets disclosed in the Fund’s statement of

assets. It thus presents a breakdown of the difference be-

tween the assets at the beginning and the end of the finan-

cial year.

The distribution for the previous year is the distribution

amount reported in the Annual Report for the previous year

(see the total distribution item under “Calculation of the dis-

tribution” in the section on the statement of income and

expenditure in the Annual Report) plus the adjustment item. The latter item reflects units issued and redeemed

between the end of the financial year and the distribution

date. Investors who acquire units between these two dates

participate in the distribution although their unit purchases

were not recognised as an inflow of funds in the period

under review. Conversely, investors who sell their units be-

tween these two dates do not participate in the distribution,

although their unit redemption was not reflected in the out-

flow of funds in the period under review.

The inflow of funds from sale of units and the outflow of funds from redemption of units are calculated as the re-

spective redemption price multiplied by the number of units

sold or redeemed.

The redemption price includes the accumulated income per

unit. The equalisation paid is deducted from or added to the

inflow and outflow of funds, which consequently only indi-

cate the change in assets. Ultimately, the result of the equa-

lisation paid is that the distributable amount per unit is not

influenced by changes in the units in issue.

The ordinary net income can be seen from the statement

of income and expenditure.

The amortisation of transaction costs item is used to

report the amounts by which the transaction costs for prop-

erties or equity interests in real estate companies were

amortised in the year under review. This includes both

straight-line amortisation and write-offs on the disposal of

assets in the financial year.

Realised gains and losses can be seen from the statement

of income and expenditure.

The net change in value of unrealised gains/losses on

properties and on equity interests in real estate companies

items is the result of remeasurement gains and losses and

changes in carrying amounts during the financial year.

Changes in market value due to initial valuations by the

Expert Committee or subsequent reappraisals are recog-

nised, as are all other changes in the carrying amounts of

the properties/equity interests. These can be the result, for

example, of the recognition or reversal of provisions, subse-

quent purchase price adjustments or cost refunds, the

acquisition of additional minor spaces, etc.

The net change in value of unrealised gains/losses on for-

ward exchange transactions is the result of changes in mar-

ket values in the financial year.

This item also includes changes in value resulting from

exchange rate fluctuations.

Disclosures on the development of Fund assets

IP_JB_2010_24_25_Fondsvermoegen_E.indd 25 06.06.2011 14:38:19 Uhr


EUR EUR EUR EUR % ofFund

assets

I. Properties(see Statement of Assets Part I, page 32 ff.)

1. Commercial properties 1,229,230,677.43 133.57


2. Properties under construction 69,659,837.32 7.57


Total properties 1,298,890,514.75 141.14

Total in foreign currency 409,121,699.17

II. Equity interests in real estate companies(see Statement of Assets Part I, page 36 ff.)

1. Majority interests 109,029,299.58


2. Minority interests 25,211,559.35


Total equity interests in real estate companies 134,240,858.93 14.59


III. Liquidity portfolio(see Statement of Assets Part II, page 43)

1. Bank deposits 86,622,191.23


Total liquidity portfolio 86,622,191.23 9.41

IV. Other assets(see Statement of Assets Part III, page 44 ff.)

1. Receivables from real estate management 21,559,549.25


2. Receivables from real estate companies 27,333,502.86


3. Interest claims 696,723.19

of which in foreign currency 502,040.93

4. Transaction costs

for properties 21,526,672.58


for equity interests in real estate companies 1,508,611.27


5. Miscellaneous 38,587,505.56


Total other assets 111,212,564.71 12.08


Total 1,630,966,129.62 177.22


V. Liabilities from(see Statement of Assets Part III, page 44 ff.)

1. Loans 644,370,551.59

of which collateralised 523,275,601.59


2. Land purchases and construction projects 7,063,172.92


3. Real estate management 28,318,120.37




Total liabilities 685,709,786.33 74.51


VI. Provisions 24,994,205.98 2.71


Total 710,703,992.31 77.22


Total Fund assets 920,262,137.31 100.00


Unit value (EUR) 126.17

Units in circulation 7,293,788

Condensed Statement of Assets as of 31 December 2010

IP_JB_2010_26_29_Vermo ̈gensaufstellung_E.indd 26 06.06.2011 14:47:12 Uhr


GermanyEUR

Other EU countries

EUR

USAEUR

AsiaEUR

420,268,000.00 808,962,677.43 0.00 0.00

0.00 69,659,837.32 0.00 0.00

420,268,000.00 878,622,514.75 0.00 0.00

0.00 33,808,764.13 38,704,400.75 36,516,134.70

0.00 1,414,495.63 0.00 23,797,063.72

0.00 35,223,259.76 38,704,400.75 60,313,198.42

75,958,664.82 10,663,526.41 0.00 0.00

75,958,664.82 10,663,526.41 0.00 0.00

6,079,446.40 16,609,870.42 0.00 0.00

0.00 13,900,187.57 0.00 13,433,315.29

0.00 224,317.31 0.00 472,405.88

1,184,228.14 20,342,444.44 0.00 0.00

0.00 0.00 0.00 1,508,611.27

4,885,975.46 28,481,826.01 164,554.20 5,055,149.89

12,149,650.00 79,558,645.75 164,554.20 20,469,482.33

508,376,314.82 1,004,067,946.67 38,868,954.95 80,782,680.75

172,489,950.00 471,880,601.59 0.00 0.00

928,416.31 4,490,725.68 0.00 1,644,030.93

4,772,650.32 23,545,470.05 0.00 0.00

3,328,948.06 3,705,170.49 29,317.83 24,272.64

181,519,964.69 503,621,967.81 29,317.83 1,668,303.57

1,214,811.00 19,408,171.31 2,865,703.06 1,505,520.61

182,734,775.69 523,030,139.12 2,895,020.89 3,173,824.18

325,641,539.13 481,037,807.55 35,973,934.06 77,608,856.57



Fund assets increased by EUR 70.3 million to EUR 920.3

million in the financial year from 1 January 2010 to 31

December 2010.

I. PropertiesFive properties were added to the Fund in the reporting

period. Generally, these must be recognised at their

purchase price for twelve months after acquisition. By way

of exception, the market value must be recognised in the

case of changes in value in accordance with section 79(1)

sentence 5 of the InvG (see table of purchases/additions

on page 19).

The commercial properties were included in the Fund

assets at the market values calculated by the experts in

each case. Two properties are under construction, of which

one is included in the Fund assets at the value of the land

plus the accumulated construction costs, and the other is

included at its market value according to an expert opinion

plus the accumulated construction costs. Property assets

increased by EUR 487.7 million to EUR 1,298.9 million in

the period under review, and comprised 31 directly held

properties and two properties under construction as of the

reporting date, 31 December 2010.

II. Equity interests in real estate companiesA 30% equity interest in the 133 New Bridge Road property

in Singapore, which in turn is held via five property compa-

nies, was added to the Fund in financial year 2010.

Equity interests in real estate companies comprise 13

companies with 17 properties and an aggregate market

value of EUR 255.8 million. After adjustment for the com-

panies’ liabilities and other assets (EUR 33.6 million),

debt finance (EUR 127.9 million) and shareholder loans

(EUR 27.3 million), the value of the equity investments is

EUR 134.2 million.

Liabilities from debt finance comprise loans in US dollars

totalling EUR 75.3 million, a loan in Singapore dollars of

EUR 25.6 million, a EUR 18.5 million loan in euros and a

loan in Norwegian kroner of EUR 8.5 million. The duration

of the companies’ debt finance is 3.4 years.

The minority interests item relates to the equity interest of

19.9% held by the Fund in the Finnish company Kiinteistö

Oy Plaza 2 Park. This company holds a car park in Vantaa

(Finland). A corresponding number of the property’s park-

ing spaces are allocated to the adjacent property, which is

held by Kiinteistö Oy Plaza Allegro. A Singapore-based

equity interest of 30.0% was also added to the Fund in the

financial year.

III. Liquidity portfolioThe bank deposits reported under the liquidity portfolio item serve to meet ongoing payment obligations arising

in connection with the management of the properties, as

well as purchase price payments for acquired properties.

EUR 46.0 million has been set aside to fulfil the statutory

requirements on minimum liquidity.

IV. Other assetsReceivables from real estate management comprise

rent receivables totalling EUR 8.7 million and expenditures

relating to service charges that are allocable to tenants in

the amount of EUR 12.8 million. These are matched by

appropriate prepayments by tenants of allocable costs in

the amount of EUR 16.9 million, which are included in the

liabilities from real estate management item.

The receivables from real estate companies item con-

tains five shareholder loans. EUR 13.4 million relates to

three loans in Malaysian ringgits, EUR 11.5 million to a loan

in euros and EUR 2.4 million to a loan in Norwegian kroner.

Interest claims result from the shareholder loans to the

real estate companies.

Transaction costs comprise the ancillary costs relating to

properties and equity interests in real estate companies

that were added to the Fund on or after 15 January 2010

(see also the purchases and sales on page 19). At the

above-mentioned date, the Fund’s application of the statu-

tory transition period ended and the Fund Rules were

amended to reflect the version of the investment law that

came into force in December 2007.

Transaction costs comprise those ancillary costs that had

not yet been amortised at the reporting date because the

property/equity interest acquired was still part of the Fund

assets and the amortisation period since acquisition had

not expired.

This item does not include transaction costs incurred by a

real estate company when it acquires a property or another

equity interest. Such transaction costs only have an indi-

rect effect on Fund assets via the value of the equity inter-

est in the relevant company.

Transaction costs include property purchase tax, costs of

legal advice, court costs and notary fees, property agent

fees, due diligence costs as well as expert fees and con-

struction and purchase fees. They are amortised in equal

annual amounts over ten years.

Disclosures on the statement of assets



The other assets disclosed under the miscellaneous item

mainly represent sales tax receivables from domestic and

foreign fiscal authorities in the amount of EUR 17.0 million,

receivables from advance payments for operating costs

due in the amount of EUR 8.7 million from property mana-

gers abroad, advance payments for the acquisition of land

in the amount of EUR 5.6 million and receivables from

counterparties to forward exchange transactions in the

amount of EUR 4.5 million.

Where properties and real estate companies are acquired

in foreign currencies, part of the exchange rate risk is

hedged by taking out loans in the relevant local currency.

The internal portion of the financing is hedged against

changes in exchange rates using forward exchange transactions.

An overview of open currency items is given in the State-

ment of Assets Part III.

A total of 27 forward exchange transactions with an aggre-

gate volume of USD 191.4 million, twelve forward exchange

transactions with an aggregate volume of NOK 346.8 mil-

lion, 34 forward exchange transactions with an aggregate

volume of MYR 1,515.8 million, 49 forward exchange trans-

actions with an aggregate volume of GBP 418.7 million and

41 forward exchange transactions with an aggregate volume

of PLN 287.7 million, as well as nine forward exchange

trans actions with an aggregate volume of SGD 89.2 million

were entered into in the period under review to hedge

exchange rate risks.

Receivables from counterparties to forward exchange trans-

actions denominated in sterling amount to EUR 3.4 million

and in US dollars to EUR 1.1 million.

V. LiabilitiesLiabilities from loans refer to loans taken out to acquire

properties. Please see the tables on page 13 for a break-

down of the loan portfolio by currency and the duration in

each case, as well as the breakdown of the loan volume by

fixed interest rate period.

Liabilities from land purchases and construction pro-jects are the result of outstanding payment obligations

relating to the acquisition of properties and real estate

companies in the amount of EUR 7.1 million.

Liabilities from real estate management primarily con-

sist of EUR 16.9 million for prepaid allocable costs, EUR

6.5 million for advance rental payments and EUR 4.9 mil-

lion for cash security bonds.

The miscellaneous item includes EUR 1.3 million in sales

tax liabilities to domestic and foreign fiscal authorities,

EUR 1.3 million in liabilities to creditors, EUR 1.0 million in

loan interest liabilities and EUR 0.8 million in liabilities

from management and custodian bank fees. Liabilities to

counterparties to forward exchange transactions amount

to EUR 1.6 million.

VI. ProvisionsProvisions relate mainly to taxes – of which EUR 8.0 mil-

lion is attributable to provisions for deferred taxes on

potential capital gains and EUR 2.9 million to current taxes

on income abroad. Provisions were also recognised for

construction projects (EUR 8.6 million), for non-allocable

operating costs (EUR 3.0 million) and for maintenance

measures (EUR 2.3 million).

Capital gains taxTaxes on foreign capital gains are only incurred if a prop-

erty is disposed of and actually generates a book profit.

The timing and amount of such taxes is uncertain, as both

market conditions and the basis for tax assessment can

change constantly. Deferred tax liabilities were recognised

in full (100%) and classified as provisions. The difference

between the current market values and the carrying

amounts for tax purposes of the properties was taken as

the basis for assessment in calculating the size of the pro-

vision for deferred taxes on foreign capital gains, using

country-specific tax rates; generally applicable sales costs

were taken into consideration during this process. The pro-

vision was charged to Fund capital as it is not classified as

a distributable reserve.

The Finnish, Malaysian and US real estate companies were

also included in the calculation. These are treated as direct

acquisitions for tax purposes, with the result that any gain

on the disposal of shares in the companies is subject to

capital gains tax. Capital gains tax was calculated in the

same manner as the method described above. The market

value of the property was merely replaced by the going

concern value.



SpainThe economy in Spain is being held back by the need to cut

both public and private sector debt. High vacancy levels

mean that rents on the office markets remain under pres-

sure, whereas they are stabilising in the logistics sector.

Transaction volumes firmed slightly, while initial yields in

the core markets eased somewhat. Following the sharp cor-

rection in rents and yields, core properties now offer selec-

tive investment opportunities.

Northern Europe As with Germany, the economies in the export- and com-

modity-sensitive countries of Northern Europe are bouncing

back fast. As a result, demand in the prime office and logis-

tics market segment is picking up and a positive rental trend

can be expected. Increased investor interest means the

decline in initial yields in the prime segment is expected to

continue.

Central Eastern EuropeThe economies of Central Eastern Europe also offer positive

growth prospects. At just under 4%, economic growth in

Poland will clearly exceed the European average, whereas

high levels of debt in Hungary are acting as a brake on eco-

nomic development. Demand on the rental markets has

picked up and rents are stabilising. The largest increases can

be expected in Poland. With respect to the investment mar-

kets, prime yields have seen a trend reversal everywhere

and are likely to continue to decline slightly in 2011. Given

the prospects of recovery, the prime markets in particular

will continue to offer selective investment opportunities.

USAThe US economy will continue gathering momentum in 2011

but will remain dependent on economic policy support. As a

result, the situation on the labour market is also expected to

improve further. Risks exist in connection with the need to

consolidate public sector finances, which is inevitable

sooner or later. The ongoing recovery has also led to an

upturn in investment market activity in North America,

although this is currently still limited to a handful of markets

led by New York and Washington, D.C. At the same time,

these markets saw a tangible drop in initial yields. Retail and

office rental markets are being boosted by what are in some

cases extremely low levels of completions. In line with this,

the trend towards a stabilisation in office rents, which has

been seen to date in isolated markets such as New York and

San Francisco, will become more broad-based. Rising con-

sumer spending will lead to a recovery in retail rents.

Asia-PacificDespite an expected slowdown Asia will continue to see the

strongest economic growth in the world in 2011. The danger

of the economy as a whole or the residential real estate mar-

kets overheating makes additional restrictive economic pol-

icy measures likely. Demand for space on the commercial

real estate markets is picking up and the rise in rents should

continue. High levels of construction on the South Korean

and Malaysian markets and in China’s Tier II cities are acting

as a brake on rent rises. Activity on the Asian investment

markets has continued to increase, with development

projects in China playing a major role. In the commercial

segment, investor interest is mainly focused on Tokyo, Hong

Kong and Singapore. Price trends on most markets have

started to reverse.

77 Jalan Raja Chulan, Kuala Lumpur, Malaysia



Labège / Toulouse

Aix-en-Provence

Madrid

Lisbon

Porto

Seville

Barcelona

Marseille

Bordeaux

Capital with investment

Capital

Town/city with investment

Town/city

Ciempozuelos

Las Rozas

Ljubljana

Rome

Palermo

Stuttgart

Ottobrunn

Herblay

Saint-Ouen L’Aumône

Paris

Berne

Munich

Nuremberg

Korntal-Münchingen

Hamburg

Langenfeld

Venlo

Amsterdam

Brussels

Berlin

PragueFrankfurt

Düsseldorf

Doncaster-Armthorpe

London

Milton Keynes

Cologne

Münster

LanghusOslo

Copenhagen

Regional Distribution of Fund Properties

Europe: 37 properties, of which

13 properties in Germany

USA: 5 properties

Asia: 8 properties

IP_JB_2010_30_31_Karte_E.indd 30 06.06.2011 16:22:33 Uhr


Asia

USA

Zagreb

Belgrade

Sarajevo

Tirana

Athens

Vienna

Budapest

Bratislava

Werndorf

Singapore

Warsaw

Lodz

Vantaa

Stockholm

Helsinki

Tallinn

Riga

Kuala Lumpur

Bangkok

San FranciscoWashington, D.C.

New York

New Providence

Gainesville

Tallahassee

IP_JB_2010_30_31_Karte_E.indd 31 06.06.2011 16:22:33 Uhr


Location of property Type of use (as a % of estimated net rental) Area in m2 Property data

Pro

ject

/po

rtfo

lio

d

ev

elo

pm

en

t m

ea

sure

s

Ind

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2

Typ

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Off

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Re

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teri

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itio

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Fe

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I. Directly held properties in eurozone countries

Germany

40472 Düsseldorf

Theodorstrasse 180 C – 100 0 0 0 0 0 0 0 09 / 2008 2002 8,880 10,178 0 182 A, P, H, C 2 C

20097 Hamburg

Friesenstrasse 22/Grüner Deich 21 C – 100 0 0 0 0 0 0 0 05 / 2005 2000 2,162 9,816 0 57 D, P, H, C 3 C

20251 Hamburg

Strassenbahnring 6–18 C – 75 13 0 0 0 0 12 0 10 / 2005 1900 / 2004 7,528 8,611 0 176 D, A, G, S, H, C 2 B

22415 Hamburg

Langenhorner Markt 1–18 C – 16 56 4 0 0 9 2 13 06 / 2006 1964 / 1995 17,966 12,164 0 302 A, P, H, C 3 I

22087 Hamburg

Lübecker Strasse 128/Landwehr 2 C – 94 0 1 0 0 0 5 0 12 / 2005 2004 5,727 16,425 0 122 D, A, P, H, C 2 B

50676 Cologne

Cäcilienkloster 2, 6, 8, 10 C – 90 0 4 0 0 0 6 0 10 / 2009 2009 4,489 18,723 0 141 D, A, P, H 2 A

70825 Korntal-Münchingen

Lingwiesenstrasse 11–13 C – 66 0 27 0 0 0 7 0 02 / 2008 2000 / 2004 12,002 11,139 0 159 P, S, H, C 2 D

40764 Langenfeld

Poensgenstrasse 25 C – 16 0 82 0 0 0 2 0 12 / 2004 1990 / 2002 37,772 23,752 0 147 G, S, H, C 3 G

81243 Munich

Am Gleisdreieck 8 C – 0 72 0 0 0 0 28 0 08 / 2010 2009 24,271 10,641 0 337 D, G, S, H 3 D

48143 Münster

Stubengasse 11–33/Loerstrasse 10 C – 14 49 2 24 0 0 11 0 12 / 2009 2009 8,288 17,040 0 318 D, A, G, P, S, H 1 A

90409 Nuremberg

Am Stadtpark 2 C – 30 13 2 0 1 0 6 48 06 / 2007 2004 1,910 8,790 0 140 A, P, S, H, C 2 C

85521 Ottobrunn

Robert-Koch-Strasse 100 C – 77 0 16 0 0 0 6 1 12 / 2004 2002 18,048 20,493 0 218 D, G, P, S, H 2 D

70499 Stuttgart

Ingersheimer Strasse 10 C – 93 0 0 0 0 0 7 0 04 / 2006 1997 4,203 7,707 0 130 P, H, C 3 C

France

13090 Aix-en-Provence

320 Avenue Archimède C – 100 0 0 0 0 0 0 0 06 / 2006 2006 16,408 5,638 0 300 A, P, H, C 2 C

13100 Aix-en-Provence 1) C (u.

Avenue Galilée con.) – n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 / 2007 n.a. 42,588 n.a. n.a. n.a. A, H, C n.a. C

95220 Herblay

41 Avenue de Gros Chêne C – 8 0 90 0 0 0 0 2 12 / 2005 2005 34,397 17,499 0 163 S, H, C 2 G

33120 Labège/Toulouse

Avenue de l’Occitane C – 100 0 0 0 0 0 0 0 06 / 2006 2006 11,103 6,136 0 260 A, P, H, C 2 C

95310 Saint-Ouen L’Aumône

97 Avenue du Château C – 2 0 92 0 0 0 0 6 10 / 2001 2001 20,647 11,309 0 124 S, H, C 2 G

Statement of Assets, Part I: Property Record as of 31 December 2010

Type of property:

C = Commercial property

H = Heritable building right

R = Residential property for letting

Project/portfolio development

measures:

Po = Portfolio development measure

Pr = Project development measure

Features:

D = District heating

A = Air conditioning/auxiliary cooling

G = Goods lift

P = Passenger lift

S = Sprinkler system

H = Hot water (central/decentralised)

C = Central heating

IP_JB_2010_32_43_Immoverzeichnis.indd 32 06.06.2011 14:52:50 Uhr


Letting Property performance Results of expert valuation

Av

era

ge

re

ma

inin

g le

ase

term

s in

ye

ars

Re

ma

inin

g le

ase

te

rms

exp

irin

g

in t

he

ne

xt 1

2 m

on

ths

in %

Va

can

cy r

ate

in %

o

f e

stim

ate

d g

ross

re

nta

l

Ma

rke

t v

alu

e/p

urc

ha

se p

rice

(a

t th

e r

ep

ort

ing

da

te)

in E

UR

To

tal t

ran

sact

ion

co

sts

in E

UR

o

f w

hic

h o

the

r co

sts

in E

UR

To

tal t

ran

sact

ion

co

sts

in %

of

ma

rke

t v

alu

e/p

urc

ha

se p

rice

Tra

nsa

ctio

n c

ost

s a

mo

rtis

ed

in

the

fin

an

cia

l ye

ar

in E

UR

Tra

nsa

ctio

n c

ost

s st

ill t

o b

e

am

ort

ise

d in

EU

R

Exp

ect

ed

re

ma

inin

g

am

ort

isa

tio

n p

eri

od

in y

ea

rs

De

bt

rati

o in

% o

f m

ark

et

va

lue

/pu

rch

ase

pri

ce

Re

nta

l in

com

e d

uri

ng

th

e

fin

an

cia

l ye

ar

in E

UR

*

Fo

reca

st r

en

tal i

nco

me

fo

r th

e

ne

xt f

ina

nci

al y

ea

r in

EU

R *

Pro

pe

rty

retu

rn in

th

e f

ina

nci

al y

ea

r in

% *

Nu

mb

er

of

ten

an

ts

o

f w

hic

h f

ee

s a

nd

ta

xes

in E

UR

Gro

ss p

rofi

t in

EU

R

Re

ma

inin

g u

sefu

l li

fe in

ye

ars

1 – – 0.0 21,400,000 – – – – – – – – – – 6.1 1,332,091 63

1 – – 0.0 21,800,000 – – – – – – – 51.7 – – 7.2 1,263,192 60

11 5.0 0.0 0.0 27,900,000 – – – – – – – 47.7 1,567,228 1,729,400 5.6 1,705,901 64

95 3.9 28.7 3.4 27,500,000 – – – – – – – 46.5 1,912,108 1,970,996 7.0 1,966,244 41

13 2.8 1.2 1.7 43,600,000 – – – – – – – 20.6 2,387,119 2,376,806 5.5 2,556,755 64

8 8.0 1.5 0.0 75,200,000 – – – – – – – 50.5 3,975,424 4,000,680 5.3 3,942,167 69

4 – – 5.6 17,400,000 – – – – – – – 23.9 – – 5.4 1,164,897 55

2 – – 0.0 19,950,000 – – – – – – – – – – 8.6 1,657,923 34

1 – – 0.0 19,168,000 1,235,687 670,880 564,807 6.4 51,459 1,184,228 9.6 53.2 – – 6.9 1,400,000 39

10 11.8 0.0 0.5 70,900,000 – – – – – – – 47.5 4,111,592 4,110,816 5.8 4,081,990 69

25 6.2 0.0 0.4 27,400,000 – – – – – – – 51.1 1,579,311 1,517,319 5.8 1,605,446 64

1 – – 98.5 32,250,000 – – – – – – – – – – 2.3 2,467,351 57

1 – – 0.0 15,800,000 – – – – – – – 55.7 – – 6.4 1,064,011 57

17 5.4 0.0 0.0 11,600,000 – – – – – – – 43.1 866,744 829,602 7.5 817,504 66

n.a. n.a. n.a. n.a. 25,410,213 – – – – – – – n.a. n.a. n.a. n.a. n.a. n.a.

1 – – 0.0 13,400,000 – – – – – – – 49.3 – – 8.4 941,448 45

7 5.3 0.0 52.1 9,760,000 – – – – – – – 51.2 350,123 381,200 3.6 767,000 66

0 – – 100.0 8,300,000 – – – – – – – 43.4 – – 5.5 621,995 51

Location category:

A = Central business district (CBD)

B = Other city centre locations

C = Local office centre

D = Commercial estate

E = City centre (1a)

F = Solo location (shopping centre)

G = Established logistics location

H = Other locations

I = Urban district centre

Property quality:

1 = Very high

2 = High

3 = Medium

4 = Simple

Footnotes see page 40

* This column was not included in the audit for

which the Auditors’ Report was issued.




Pro

ject

/po

rtfo

lio

d

ev

elo

pm

en

t m

ea

sure

s

Ind

ust

ria

l (w

are

ho

use

s, h

all

s)

Sit

e a

rea

in m

2

Typ

e o

f p

rop

ert

y

Off

ice

Re

tail

/ca

teri

ng

Ho

tel

Re

sid

en

tia

l

Leis

ure

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g s

pa

ces

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er

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uis

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n d

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Co

mm

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ial

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sid

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tia

l

Nu

mb

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of

pa

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g s

pa

ces

Fe

atu

res

Pro

pe

rty

qu

ali

ty

Loca

tio

n c

ate

go

ry

Netherlands

5928 PR Venlo

Celsiusweg 66 C – 13 0 86 0 0 0 1 0 07 / 2005 1994 / 2004 34,607 22,160 0 91 A, H, C 2 G

5928 PR Venlo

Celsiusweg 18–20 C – 0 0 100 0 0 0 0 0 08 / 2007 1997 / 2002 26,282 22,719 0 94 P, S, H, C 4 G

Austria

8402 Werndorf

Am Gewerbepark 2 C – 1 0 94 0 0 0 0 5 10 / 2007 2005 36,022 16,415 0 110 D, A, H 3 G

8402 Werndorf

Am Gewerbepark 4 C – 2 0 98 0 0 0 0 0 10 / 2007 2007 15,254 12,000 0 0 D, A, H 3 G

Spain

28350 Ciempozuelos

Calle Almendro s/n / Calle Enebro s/n C – 2 0 98 0 0 0 0 0 05 / 2008 2006 71,553 45,707 0 222 S, H, C 3 G

28230 Las Rozas

Calle de Gabriel Garcia Márquez 1 C – 100 0 0 0 0 0 0 0 05 / 2010 1996 37,421 43,694 0 537 A, G, P, S, H, C 1 C

II. Directly held properties in countries with other currencies

United Kingdom

DN3 3FF Doncaster-Armthorpe

Lincolnshire Way C – 0 0 100 0 0 0 0 0 07 / 2008 2006 156,300 69,940 0 390 A, G, P, S, H 3 G

W1A 3BG London

43–45 Portman Square C – 93 7 0 0 0 0 0 0 03 / 2010 1998 1,930 10,420 0 14 A, G, P, S, H, C 2 A

EC4 London

5–14 St. Paul’s Churchyard/

4–6 Dean’s Court C – 88 9 3 0 0 0 0 0 06 / 2010 2005 2,049 12,221 0 7 A, G, P, S, H, C 2 A

EC2R 8BE London C (u.

1 Threadneedle Street con.) – n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 / 2009 n.a. 834 n.a. n.a. n.a. A, P, H, C n.a. A

MK4 4AE Milton Keynes

Snelshall Street/2 Standing Way C – 3 0 97 0 0 0 0 0 09 / 2008 2005 67,200 33,206 0 290 A, P, S, H 3 G

Poland

99-051 Lodz

Aleja Pilsudskiego 22 C – 92 0 1 0 0 0 4 3 07 / 2008 2006 9,916 6,534 0 130 D, A, P, S, H 2 A

02-678 Warsaw

Szturmowa 2 C / H – 90 2 0 0 0 0 7 1 06 / 2005 1997 9,928 12,370 0 244 D, A, P, H 3 C

02-678 Warsaw

Szturmowa 2a C / H – 87 0 2 0 0 0 10 1 06 / 2005 2000 5,667 19,789 0 401 D, A, P, H 2 C

02-672 Warsaw

Ulica Domaniewska 49 C / H – 82 4 2 0 0 0 12 0 03 / 2010 2009 10,838 32,434 0 869 D, A, G, P, H, C 2 C

Total properties

Type of property:





measures:



Features:



G = Goods lift

P = Passenger lift



C = Central heating




Av

era

ge

re

ma

inin

g le

ase

term

s in

ye

ars

Re

ma

inin

g le

ase

te

rms

exp

irin

g

in t

he

ne

xt 1

2 m

on

ths

in %

Va

can

cy r

ate

in %

o

f e

stim

ate

d g

ross

re

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Ma

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t v

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urc

ha

se p

rice

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t th

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te)

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UR

To

tal t

ran

sact

ion

co

sts

in E

UR

o

f w

hic

h o

the

r co

sts

in E

UR

To

tal t

ran

sact

ion

co

sts

in %

of

ma

rke

t v

alu

e/p

urc

ha

se p

rice

Tra

nsa

ctio

n c

ost

s a

mo

rtis

ed

in

the

fin

an

cia

l ye

ar

in E

UR

Tra

nsa

ctio

n c

ost

s st

ill t

o b

e

am

ort

ise

d in

EU

R

Exp

ect

ed

re

ma

inin

g

am

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isa

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bt

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o in

% o

f m

ark

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ase

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ce

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nta

l in

com

e d

uri

ng

th

e

fin

an

cia

l ye

ar

in E

UR

*

Fo

reca

st r

en

tal i

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me

fo

r th

e

ne

xt f

ina

nci

al y

ea

r in

EU

R *

Pro

pe

rty

retu

rn in

th

e f

ina

nci

al y

ea

r in

% *

Nu

mb

er

of

ten

an

ts

o

f w

hic

h f

ee

s a

nd

ta

xes

in E

UR

Gro

ss p

rofi

t in

EU

R

Re

ma

inin

g u

sefu

l li

fe in

ye

ars

2 – – 0.0 15,400,000 – – – – – – – 44.4 – – 8.0 1,207,240 40

1 – – 0.0 20,550,000 – – – – – – – 51.8 – – 7.5 1,487,634 40

1 – – 0.0 14,400,000 – – – – – – – – – – 6.3 900,000 55

1 – – 0.0 7,400,000 – – – – – – – – – – 6.8 475,092 57

4 – – 18.9 37,400,000 – – – – – – – 52.7 – – 6.0 2,651,028 56

1 – – 0.0 117,000,000 3,849,803 1,622,500 2,227,303 3.3 188,798 3,661,005 9.5 65.5 – – 6.1 7,211,000 56

1 – – 0.0 60,077,474 – – – – – – – 74.1 – – 6.6 4,470,413 44

8 10.7 0.1 0.0 143,698,824 9,121,490 4,963,930 4,157,560 6.3 712,717 8,419,261 9.2 55.0 6,395,475 8,005,130 5.8 8,288,239 58

13 10.7 0.0 0.9 127,113,730 6,874,523 4,838,858 2,035,665 5.4 380,894 6,501,604 9.5 64.3 3,667,561 6,735,570 5.3 6,871,055 65

n.a. n.a. n.a. n.a. 44,249,625 – – – – – – – – n.a. n.a. n.a. n.a. 60

1 – – 0.0 33,982,046 – – – – – – – 68.3 – – 7.1 2,402,259 45

1 – – 0.0 16,600,000 – – – – – – – 51.8 – – 6.6 1,122,758 66

11 4.9 2.0 40.3 28,900,000 – – – – – – – 45.0 1,341,786 1,588,281 4.6 2,117,708 57

13 5.3 2.8 24.0 52,600,000 – – – – – – – 48.3 2,630,351 1,973,666 5.0 3,867,342 60

21 4.7 0.0 0.0 90,780,603 1,915,380 0 1,915,380 2.1 154,805 1,760,575 9.2 51.8 5,143,294 5,076,873 6.8 6,532,764 69

1,298,890,515 1,488,673 21,526,673

Location category:








H = Other locations


Property quality:

1 = Very high

2 = High

3 = Medium

4 = Simple







Pro

ject

/po

rtfo

lio

d

ev

elo

pm

en

t m

ea

sure

s

Ind

ust

ria

l (w

are

ho

use

s, h

all

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Sit

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rea

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2

Co

mp

an

y

Typ

e o

f p

rop

ert

y

Off

ice

Re

tail

/ca

teri

ng

Ho

tel

Re

sid

en

tia

l

Leis

ure

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pa

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ial

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tia

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Nu

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g

spa

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Fe

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Pro

pe

rty

qu

ali

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Loca

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III. Properties held via real estate companies in eurozone countries

Finland

Kiinteistö Oy Plaza Allegro, Finland, 01510 Vantaa, Äyritie 8b

Company’s capital: EUR 14,702,738.77

Shareholder loans: EUR 0.00

Equity interest held: 100.00000%

1. 01510 Vantaa

Äyritie 8b2) C – 99 0 1 0 0 0 0 0 12 / 2006 2006 2,563 4,648 0 0 D, A, P, S, H, C 3 C

Kiinteistö Oy Plaza 2 Park, Finland, 01510 Vantaa, Äyritie 8b

Company’s capital: EUR 895,120.26



1. 01510 Vantaa

Äyritie 8b3) C – n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 12 / 2006 2008 n.a. n.a. n.a. 114 P n.a. C

Slovakia

Europeum Business Center s.r.o., Slovakia, Nam. SNP 15, 81009 Bratislava


Shareholder loans: EUR 11,500,000.00


1. 81009 Bratislava

Suché Mýto 1 C – 73 15 0 0 0 0 12 0 05 / 2007 2003 3,099 10,447 0 183 A, P, H, C 2 A

IV. Properties held via real estate companies in countries with other currencies

Malaysia

Immo Pavilion 1 SDN BHD, Malaysia, 50460 Kuala Lumpur, Suite 2.03, 2nd Floor, Wisma Mirama, Jalan Wisma Putra

Company’s capital: EUR 9,629,501

Shareholder loans: EUR 6,130,057


1. 55100 Kuala Lumpur

77 Jalan Raja Chulan 4) R / H – 0 0 0 0 87 0 13 0 06 / 2009 2009 259 0 5,350 38 A, P, H 2 A






77 Jalan Raja Chulan4) R / H – 0 0 0 0 87 0 13 0 06 / 2009 2009 291 0 5,467 37 A, P, H 2 A






77 Jalan Raja Chulan4) R / H – 0 0 0 0 82 0 18 0 12 / 2009 2009 483 0 2,334 24 A, P, H 2 A

Type of property:





measures:



Features:



G = Goods lift

P = Passenger lift



C = Central heating




Av

era

ge

re

ma

inin

g le

ase

te

rms

in y

ea

rs

Re

ma

inin

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ase

te

rms

exp

irin

g

in t

he

ne

xt 1

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ths

in %

Va

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cy r

ate

in %

of

est

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ted

gro

ss r

en

tal

To

tal t

ran

sact

ion

co

sts

in E

UR

To

tal t

ran

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ion

co

sts

in &

of

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pu

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Tra

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in t

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fi

na

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EU

R

Tra

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Exp

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UR

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fo

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ext

fi

na

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EU

R *

Pro

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Nu

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ts

Value of the equity interest (at the reporting date) in EUR

Market value/purchase price (at the reporting date) in EUR

of

wh

ich

fe

es

an

d t

axe

s in

EU

R

o

f w

hic

h o

the

r co

sts

in E

UR

Gro

ss p

rofi

t in

EU

R

Re

ma

inin

g u

sefu

l li

fe in

ye

ars

18,928,292

13 2.4 5.4 7.8 16,576,000 – – – – – – – – 967,930 957,465 5.4 1,114,562 66

1,414,495

n.a. n.a. n.a. n.a. 1,424,000 – – – – – – – – n.a. n.a. n.a. n.a. 66

7,227,454

25 3.4 3.3 36.9 35,600,000 – – – – – – – 52.0 1,623,641 2,275,761 4.6 2,239,837 64

10,946,695

n.a. n.a. n.a. n.a. 13,168,436 – – – – – – – – n.a. n.a. n.a. 821,972 79

12,595,291

n.a. n.a. n.a. n.a. 13,471,426 – – – – – – – – n.a. n.a. n.a. 834,650 79

12,974,149

n.a. n.a. n.a. n.a. 5,930,572 – – – – – – – – n.a. n.a. n.a. 390,114 79

Location category:








H = Other locations


Property quality:

1 = Very high

2 = High

3 = Medium

4 = Simple







Pro

ject

/po

rtfo

lio

d

ev

elo

pm

en

t m

ea

sure

s

Ind

ust

ria

l (w

are

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use

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2

Co

mp

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y

Typ

e o

f p

rop

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y

Off

ice

Re

tail

/ca

teri

ng

Ho

tel

Re

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l

Leis

ure

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sid

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Fe

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Pro

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Loca

tio

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Norway

Regnbueveien 9 AS, Norway, 7034 Trondheim, Innherredveien 7


Shareholder loans: EUR 2,400,187.57


1. 1405 Langhus (SKI),

Regnbueveien 9 C – 10 0 90 0 0 0 0 0 01 / 2006 1999 26,801 10,062 0 58 A, S, H, C 3 G

Singapore

Perennial Chinatown Point LLP, 6 Temasek Boulevard, #25-04/05, Suntec Tower Four, Singapore 10/2010


Shareholder loans: EUR 0


CP1 Pte. Ltd., Singapore, 6 Temasek Boulevard, #25-04/05, Suntec Tower Four, Singapore 038986




1. 059413 Singapore C / H

133 New Bridge Road (u. con.) – n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 / 2010 n.a. 1,782 n.a. n.a. n.a. D, A, G, P, S, H n.a. E


Company’s capital: EUR 93,035




133 New Bridge Road (u. con.) – n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. 10 / 2010 n.a. 6 n.a. n.a. n.a. D, A, G, P, S, H n.a. E



















Type of property:





measures:



Features:



G = Goods lift

P = Passenger lift



C = Central heating




Av

era

ge

re

ma

inin

g le

ase

te

rms

in y

ea

rs

Re

ma

inin

g le

ase

te

rms

exp

irin

g

in t

he

ne

xt 1

2 m

on

ths

in %

Va

can

cy r

ate

in %

of

est

ima

ted

gro

ss r

en

tal

To

tal t

ran

sact

ion

co

sts

in E

UR

To

tal t

ran

sact

ion

co

sts

in &

of

ma

rke

t v

alu

e /

pu

rch

ase

pri

ce

Tra

nsa

ctio

n c

ost

s a

mo

rtis

ed

in t

he

fi

na

nci

al y

ea

r in

EU

R

Tra

nsa

ctio

n c

ost

s st

ill t

ob

e a

mo

rtis

ed

in E

UR

Exp

ect

ed

re

ma

inin

g

am

ort

isa

tio

n p

eri

od

in y

ea

rs

De

bt

rati

o in

% o

f m

ark

et

va

lue

/pu

rch

ase

pri

ce

Re

nta

l in

com

e d

uri

ng

th

e

fin

an

cia

l ye

ar

in E

UR

*

Fo

reca

st r

en

tal i

nco

me

fo

r th

e n

ext

fi

na

nci

al y

ea

r in

EU

R *

Pro

pe

rty

retu

rn in

th

e f

ina

nci

al y

ea

r in

% *

Nu

mb

er

of

ten

an

ts



of

wh

ich

fe

es

an

d t

axe

s in

EU

R

o

f w

hic

h o

the

r co

sts

in E

UR

Gro

ss p

rofi

t in

EU

R

Re

ma

inin

g u

sefu

l li

fe in

ye

ars

7,653,017

1 – – 0.0 15,441,287 – – – – – – – 55.0 – – 8.9 1,251,846 38

23,797,064 1,542,050 0.0 1,542,050 6.48 33,439 1,508,611 9.8

n.a. n.a. n.a. n.a. – – – – – – – – – n.a. n.a. n.a. n.a. 40





Location category:








H = Other locations


Property quality:

1 = Very high

2 = High

3 = Medium

4 = Simple







Pro

ject

/po

rtfo

lio

d

ev

elo

pm

en

t m

ea

sure

s

Ind

ust

ria

l (w

are

ho

use

s, h

all

s)

Sit

e a

rea

in m

2

Co

mp

an

y

Typ

e o

f p

rop

ert

y

Off

ice

Re

tail

/ca

teri

ng

Ho

tel

Re

sid

en

tia

l

Leis

ure

Pa

rkin

g s

pa

ces

Oth

er

Acq

uis

itio

n d

ate

Ye

ar

bu

ilt/

ren

ov

ate

d

Co

mm

erc

ial

Re

sid

en

tia

l

Nu

mb

er

of

pa

rkin

g

spa

ces

Fe

atu

res

Pro

pe

rty

qu

ali

ty

Loca

tio

n c

ate

go

ry

USA

Kings Gainesville Apartments, LLC, USA, 32601 Gainesville, 220 North Main Street




1. 32608 Gainesville

2330 SW Williston Road R – 0 0 0 0 100 0 0 0 11 / 2005 1989 / 1994 143,346 0 40,855 1,053 A, H 4 H

Lexington Gainesville Associates, LLC, USA, 32601 Gainesville, 220 North Main Street




1. 32608 Gainesville

3700 SW 27th Street R – 0 0 0 0 100 0 0 0 01 / 2006 1996 107,084 0 33,754 1,070 A, H 4 H

41 Spring Street, LLC, USA, 19046 Jenkintown, 165 Township Line Road




1. 07974 New Providence

41 Spring Street C – 100 0 0 0 0 0 0 0 09 / 2006 1957 / 1998 55,470 14.211 0 605 A, S, H 3 H

VDL Tallahassee Associates, LLC, USA, 32601 Gainesville, 220 North Main Street




1. 32304 Tallahassee

2700 West Pensacola Street R – 0 0 0 0 100 0 0 0 04 / 2006 1998 / 2004 76,149 0 26,501 563 A, H 4 H

Ocala Road Tallahassee Associates, LLC, USA, 32601 Gainesville, 220 North Main Street




1. 32304 Tallahassee

235 Ocala Road South R – 0 0 0 0 100 0 0 0 04 / 2006 1996 / 2003 30,022 0 12,284 292 A, H 4 H

Total equity interests in real estate companies

Footnotes:1) No information has been published since this property is currently under construction.2) The figures also contain the figures for the multi-storey car park.3) Partly-owned multi-storey car park.

4) Sale of individual apartments. No information is published since the apartments

in this property are being sold individually.

Type of property:





measures:



Features:



G = Goods lift

P = Passenger lift



C = Central heating




Av

era

ge

re

ma

inin

g le

ase

te

rms

in y

ea

rs

Re

ma

inin

g le

ase

te

rms

exp

irin

g

in t

he

ne

xt 1

2 m

on

ths

in %

Va

can

cy r

ate

in %

of

est

ima

ted

gro

ss r

en

tal

To

tal t

ran

sact

ion

co

sts

in E

UR

To

tal t

ran

sact

ion

co

sts

in &

of

ma

rke

t v

alu

e /

pu

rch

ase

pri

ce

Tra

nsa

ctio

n c

ost

s a

mo

rtis

ed

in t

he

fi

na

nci

al y

ea

r in

EU

R

Tra

nsa

ctio

n c

ost

s st

ill t

ob

e a

mo

rtis

ed

in E

UR

Exp

ect

ed

re

ma

inin

g

am

ort

isa

tio

n p

eri

od

in y

ea

rs

De

bt

rati

o in

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f m

ark

et

va

lue

/pu

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ase

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ce

Re

nta

l in

com

e d

uri

ng

th

e

fin

an

cia

l ye

ar

in E

UR

*

Fo

reca

st r

en

tal i

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me

fo

r th

e n

ext

fi

na

nci

al y

ea

r in

EU

R *

Pro

pe

rty

retu

rn in

th

e f

ina

nci

al y

ea

r in

% *

Nu

mb

er

of

ten

an

ts



of

wh

ich

fe

es

an

d t

axe

s in

EU

R

o

f w

hic

h o

the

r co

sts

in E

UR

Gro

ss p

rofi

t in

EU

R

Re

ma

inin

g u

sefu

l li

fe in

ye

ars

8,767,093

599 – 0.0 9.9 29,446,038 – – – – – – – 74.2 3,590,875 3,454,748 12.2 4,145,589 32

8,207,677

894 – 0.0 7.6 24,979,084 – – – – – – – 73.9 3,793,994 3,425,641 15.2 4,235,134 36

7,190,569

3 – – 19.7 22,655,970 – – – – – – – 64.4 – – 13.5 2,603,303 36

5,708,489

615 – 0.0 2.1 20,235,748 – – – – – – – 74.59 3,110,706 3,079,769 15.4 2,699,725 41

8,830,573

346 – 0.0 0.0 13,176,766 – – – – – – – 40.8 1,676,587 2,017,264 12.7 1,563,348 40

134,240,858 33,439 1,508,611

Location category:








H = Other locations


Property quality:

1 = Very high

2 = High

3 = Medium

4 = Simple





Property quality – standard of appointments according to normal production costs 2000

Type

of use

Part of

building

Skeleton construction/timbering/

frame

Solid construction Windows Roofs Sanitary installations

Office simple Simple walls, wooden/sheet metal/fibre cement

siding

Brickwork with plaster or combined bedding and pointing

and paint

Wood, single glazing Corrugated fibre cement/sheet metal roofing,

bitumen/plastic film seal

Small number of basic toilet facili-

ties, surface-mounted fittings

medium Lightweight concrete walls with thermal insulation,

concrete sandwich elements, 12 – 25 cm infill

Thermal insulation plaster/composite system, exposed

brickwork with combined bedding and pointing and paint,

medium thermal insulation standard

Wood, plastic, insulation glazing Concrete roof tiles, medium thermal insulation

standard

Adequate number of toilet facili-

ties, flush-mounted fittings

high High-density concrete plates, faced brickwork,

clinker, up to 30 cm infill

Faced brickwork, metal siding, curtain facade, high ther-

mal standard

Aluminium, shutters, solar shad-

ing system, thermal protection

glazing

Clay roof tiles, slate/metal covering, high ther-

mal insulation standard

Good quality toilet fittings

very high Glass siding, over 30 cm infill Natural stone Floor-to-ceiling glazing, large

sliding panels, electric shutters,

sound-proof glazing

Large number of skylights, elaborate roof extensi-

ons and roof heightening, glass roof cut-outs

Generous toilet facilities with

sanitary facilities, high standard

Retail simple Simple walls, wooden/sheet metal/fibre cement

siding


and paint

Wood, steel, single glazing Corrugated fibre cement/sheet metal roofing,


Small number of basic toilet facili-

ties, surface-mounted fittings







standard

Adequate number of toilet facili-

ties, flush-mounted fittings

high High-density concrete plates, faced brickwork,

clinker, up to 30 cm infill

Faced brickwork, metal siding, curtain facade, high ther-

mal standard

Aluminium, shutters, solar

shading system, thermal

protection glazing

Clay roof tiles, slate/metal covering, prefabricated

glass concrete elements, web concrete planks, high

thermal insulation standard

Generous toilet facilities with

good-quality fittings

Logistics simple Simple walls, wooden/sheet metal/fibre cement

siding


and paint

Wood, single glazing Corrugated fibre cement/sheet metal roofing,


Basic toilet facilities, small num-

ber of showers, surface-mounted

fittings







standard

Adequate toilet facilities, several

showers, some surface-mounted

fittings


The property record on the preceding pages contains infor-

mation on properties requiring further explanation.

For reasons of data protection and protection from competi-

tion, data on actual and forecast rental income is not pub-

lished for properties that are occupied exclusively by fewer

than five tenants, or for which one tenant accounts for 75%

of rental income. The data relates to the properties held

directly and indirectly by the Fund. In the case of properties

held via investment companies, rents and market values are

indicated in proportion to the respective equity interest held.

The individual values cannot be extrapolated to the Fund’s

assets as a whole.

Please read the following information in order to interpret the

data:

The year built/ renovated relates to the last year in which

major conversions, extensions, or renovations took place.

The area corresponds to the leased area at the reporting

date.

The average remaining lease terms in years do not include

any indefinite leases.

The market value is determined by the price that would be

obtained within a short time in the normal course of business

in accordance with the legal situation and actual characteris-

tics, the other attributes and the location of the property, dis-

regarding unusual or personal factors. The valuation proce-

dure is based on the income approach (Ertragswertverfahren),

in which a property’s value is calculated on the basis of the

long-term rental income that it will generate. The market

value is determined at least once a year by a committee of

external, publicly certified and sworn experts.

The purchase price and transaction costs are only reported

for properties that were purchased/added to the Fund after

the changeover to the new Investmentgesetz (InvG – German

Investment Act) on 15 January 2010.

The long-term gross profit corresponds to the rental valua-

tions determined by the external experts that are used as a

basis to calculate the income obtainable. This net basic rent

that can be generated from a property in the long term if it is

fully let therefore represents the long-term income achievable

from a property – regardless of short-term fluctuations in

demand. Premiums or discounts that reflect the property’s

current market situation (such as vacancies or leases signed

at above-market conditions) are deducted from or added to

the market value separately. For this reason, the rental valua-

tion based on the expert opinion may differ from the actual

estimated position. Rather, it provides a current estimate of a

property’s long-term earnings power.

Disclosures on the property record


Interior wall finishing

of wetrooms

Floor coverings Interior doors Heating Electrical fittings Installations and

other fittings

Oil-based paintwork Wooden floorboards, needle felt,

linoleum, PVC, wetrooms: PVC

Panel framed doors, painted leaves and

frames

Individual stoves, electric storage heating,

boilers for hot water

One lighting outlet and 1 – 2 surface-

mounted sockets per room

n.a.

Part-tiled walls (1.50 m) Carpet, PVC, tiles, linoleum,

wetrooms: tiles

Plastic/wooden leaves, steel frames Central heating with radiators

(gravity hot water system)

1 – 2 lighting outlets and

2 – 3 sockets per room, IT facilities,

surface-mounted fittings

n.a.

Floor-to-ceiling tiles Large tiles, parquet, cast stone, wetrooms:

large tiles, special coated tiles

Leaves with high-quality wood veneer,

glass doors, wooden frames

Central heating/pumped heating system with

flat radiators, central water heating

Several lighting outlets and sockets per

room, sill trunking with IT cabling

n.a.

Natural stone,

elaborately laid

Natural stone, elaborately laid,

wetrooms: natural stone

Solid construction, intruder protection,

wheelchair-enabled, automatic doors

Underfloor heating, air conditioning and other

HVAC systems

Elaborate fittings, security facilities n.a.

Oil-based paintwork Wooden floorboards, linoleum, PVC,

wetrooms: PVC

n.a. Individual stoves, electric storage heating,

boilers for hot water

Basic surface-mounted fittings n.a.

Part-tiled walls (1.50 m) Coated screed, mastic asphalt,

wetrooms: tiles

n.a. Warm air heating units, warm air heating units

connected to central boiler system, district heating

Adequate flush-mounted fittings n.a.

Floor-to-ceiling tiles Tiles, wood block flooring, cast stone,

wetrooms: large tiles

n.a. Central heating/pumped heating system with

flat radiators, central water heating

Elaborate fittings, security facilities n.a.

Oil-based paintwork Rough concrete, paint n.a. Warm air heating with a direct-fired system n.a. Surface-mounted power and water

outlets, cooking facilities, sink

Part-tiled walls (1.50 m) Screed, mastic asphalt,

block paving without bedding

n.a. Central heating n.a. Surface-mounted power and water

outlets, kitchenette


Market value

EUR

% ofFund

assets

IV. Bank deposits

Germany 75,958,664.82

Netherlands 547,965.85

United Kingdom 1,867,296.80

Austria 657,139.09

France 879,369.12

Spain 210,607.08

Poland 2,621,656.87

Finland 3,879,491.60

Total liquidity portfolio 86,622,191.23 9.41

Statement of Assets, Part II:Liquidity Portfolio



EUR EUR EUR EUR % of Fund

assets

I. Other assets

1. Receivables from real estate management 21,559,549.25


of which rent receivable 12,236,108.99

of which advance payments for operating costs 25,080,114.18

2. Receivables from real estate companies 27,333,502.86


3. Interest claims 696,723.19


4. Transaction costs

for properties 21,526,672.58


for equity interests in real estate companies 1,508,611.27




of which receivables from hedging transactions 4,482,773.65

Currency Market value

sale

EUR

Market value

rept. date

EUR

Preliminary

result

EUR

GBP 177,029,792.37 – 173,660,744.30 3,369,048.07

USD 41,181,236.51 – 40,067,510.93 1,113,725.58

Total other assets 111,212,564.71 12.08


II. Liabilities from

1. Loans 644,370,551.59

of which collateralised 523,275,601.59


2. Land purchases and construction projects 7,063,172.92


3. Real estate management 28,318,120.37




of which from hedging transactions 1,565,698.01

Currency Market value

sale

EUR

Market value

rept. date

EUR

Preliminary

result

EUR

PLN 5,712,674.11 – 5,737,475.73 24,801.62

NOK 8,654,574.40 – 8,798,119.85 143,545.45

SGD 24,086,490.71 – 24,827,552.36 741,061.65

MYR 47,314,213.41 – 47,970,502.70 656,289.29

Total liabilities 685,709,786.33 74.51


Statement of Assets, Part III:Other Assets, Liabilities and Provisions, Additional Disclosures

IP_JB_2010_44_49_Zahlen_4.indd Abs1:44 06.06.2011 15:00:18 Uhr


EUR EUR EUR EUR % of Fund

assets

III. Provisions 24,994,205.98 2.71


Total Fund assets 920,262,137.31 100.00

of wich in foreign currency 298,949,689.11

Units (EUR) 126.17

Units in circulation 7,293,788

Exchange rates* as of 31 December 2010

Norwegian kroner (NOK) 7.81023 = EUR 1

Polish zloty (PLN) 3.95913 = EUR 1

US dollar (USD) 1.33872 = EUR 1

Malayian ringit (MYR) 4.12794 = EUR 1

Sterling (GBP) 0.86222 = EUR 1

Singapore dollar (SGD) 1.71612 = EUR 1

Disclosures on financial instruments

PurchasesMarket value EUR

from 1 Jan. 2010to 31 Dec. 2010

SalesMarket value EUR

from 1 Jan. 2010to 31 Dec. 2010

Purchases and sales of financial instruments that were entered into during the reporting period;

all transactions were entered into with affiliated companies

NOK 22,563,382,00 21,182,621,56

PLN 33,618,288,62 38,554,607,02

USD 60,737,521,93 57,487,554,10

MYR 188,042,174,12 171,587,699,73

GBP 194,287,237,57 293,794,447,67

SGD 13,286,270,30 38,072,452,16

Total 512,534,874,54 620,679,382,24

* Assets denominated in foreign currencies are translated into euros at the exchange rate for the currency calculated using Reuters AG’s midday fixing at 1.30 p.m.

Forward exchange transactions were measured at their

forward rate or repayment amount on 31 December 2010.

Bank deposits were measured at their nominal amount

plus accrued interest.

Liabilities were recognised at their repayment amount.

Disclosures on the measurement policies



For the period from 1 January 2010 to 31 December 2010 EUR EUR EUR

I. Income

1. Income from properties 73,304,926.71


2. Income from equity interests in real estate companies 958,026.97


3. Interest on liquidity portfolio in Germany 287,818.39

4. Interest on liquidity portfolio outside Germany before withholding tax 7,642.64

5. Other income 3,732,877.27


Total income 78,291,291.98

II. Expenditure

1. Management costs

1.1 Operating costs 6,056,281.05


1.2 Maintenance costs 3,189,151.12


1.3 Property management costs 1,147,650.18


1.4 Other costs 572,599.80


2. Foreign taxes 3,356,101.13


3. Interest on loans 20,376,571.89


4. Remuneration of Fund management 7,951,510.53

5. Custodian Bank fee 177,066.64

6. Audit and publication costs 162,784.40

7. Other expenditure 2,511,926.81

of which remuneration of experts 357,722.75

Total expenditure 45,501,643.55

Equalisation paid 654,195.79

III. Ordinary net income 33,443,844.22

IV. Disposals

1. Realised gains

plus unrealised changes in values from previous years

1.1 on forward exchange transactions in the period under review 700,624.63

Changes in value from previous years – 244,298.70 456,325.93


1.2 Miscellaneous 1,147,005.00


2. Realised losses

plus unrealised changes in values from previous years

2.1 on forward exchange transactions in the period under review – 23,169,179.28

Changes in value from previous years – 773,238.73 – 23,942,418.01


2.2 Miscellaneous – 577,688.15


Net loss on disposals – 22,916,775.23

IV. Net profit for the financial year 10,527,068.99

Total expense ratio (TER) 0.98%

Transaction-based remuneration 0.72%

Statement of Income and Expenditure



In accordance with section 11(4) of the BVB, the Custodian

Bank receives a Custodian Bank fee of 0.005% of Fund

assets at the end of each calendar quarter.

Other expenditure in accordance with section 11(5) of the BVB mainly comprises consultancy costs, external

accounting costs, bank fees, financing costs and costs asso-

ciated with abortive acquisitions of properties. In addition,

the Company received construction and purchase fees of

EUR 6.3 million in accordance with section 11(2) of the BVB;

however, these are not reported in the statement of income

and expenditure, but under the transaction costs for the

properties and real estate companies. The members of the

Expert Committee receive remuneration for the statutory

annual valuations. The costs of the initial valuation opinions

are reported as transaction costs, and are therefore not

recognised in the statement of income and expenditure.

The equalisation paid item is the balance of expenditure and

income paid by the unit buyer as part of the issuing price in

order to compensate for accrued income, or recompensed

by the Fund as part of the redemption price when units are

redeemed.

Ordinary net income amounted to EUR 33.4 million on the

reporting date.

The realised gains on forward exchange transactions represent the difference between the lower purchase prices

and the prices at sale or maturity. The unrealised changes in

the value of forward exchange transactions consist of

changes up to the end of the previous year in the market

values of the financial market instruments that fell due

during the financial year. Deducting the unrealised losses

from the previous year results in the realised gains for the

period under review.

The miscellaneous realised gains/losses items are the result

of currency transactions.

Realised losses are calculated in the same way as realised

gains.

Net profit for the financial year amounted to EUR 10.5

million as of the reporting date and represents the sum of

ordinary net income of EUR 33.4 million and the net loss on

disposals of EUR 22.9 million.

The total expense ratio (TER) shows the impact of costs on

Fund assets. It takes into account management and Custo-

dian Bank fees, the costs of the Expert Committee and other

IncomeIncome from properties comprises the rental income from

the Fund’s German and foreign properties. Of the total

figure, EUR 43.2 million is attributable to domestic and for-

eign properties in the eurozone and EUR 30.1 million to for-

eign properties located outside this area.

Income from equity interests in real estate companies con-

sists of the distributions by US real estate companies that

were received by the Fund in the period under review.

The interest on liquidity portfolio in Germany and inter-

est on liquidity portfolio outside Germany items include

interest from demand deposits.

The other income item primarily consists of interest income

from shareholder loans in the amount of EUR 2.1 million,

income from the reversal of provisions in the amount of

EUR 0.3 million and unit redemption fees in the amount of

EUR 0.8 million.

ExpenditureManagement costs comprise operating costs (EUR 6.1 mil-

lion), maintenance costs (EUR 3.2 million) and property

management costs that cannot be charged to the tenants

(EUR 1.1 million). Valuation allowances on rent receivables

contained in the other expenditure item amount to EUR 0.6

million.

The Fund incurred expenses and recognised provisions

amounting to EUR 3.4 million for the payment of foreign taxes. This tax expense relates to the United Kingdom

(EUR 0.9 million), Poland (EUR 0.7 million), Malaysia

(EUR 0.6 million), France (EUR 0.6 million), Spain

(EUR 0.5 million) and the Netherlands (EUR 0.1 million).

As provisions for taxes on deferred capital gains are not

based on concrete intentions to make disposals, they are

taken directly from Fund assets.

Interest on loans mainly results from debt finance for

property acquisitions.

The remuneration of Fund management item amoun-

ted to EUR 8.0 million, or 0.9% p.a. of average Fund

assets. In accordance with the Fund Rules, remuneration

of up to 1.5% p.a. of average Fund assets may be char-

ged. The investment company pays regular – usually

annual – broker-age fees (trail commission) to brokers

such as credit institutions from the management fee

paid to it.

Disclosures on the statement of income and expenditure



Total inEUR

Per unit inEUR

I. Calculation of the distribution

1. Carried forward from previous year 1,451,907.18 0.20

1a. Equalisation paid on the amount carried forward from previous year 108,781.26 0.01

2. Net profit for the financial year 10,527,068.99 1.44

3. Transfer from the Fund 22,289,231.19 3.06

II. Amount available for distribution 34,376,988.62 4.71

1. Carried forward to new account – 96,185.02 – 0.01

III. Total distribution 34,280,803.60 4.70

Application of Fund Income as of 31 December 2010

Disclosures on the application of Fund income

The equalisation paid on the amount carried forward from the

previous year is the balance of expenditure and income paid

by the unit buyer as part of the issuing price in order to com-

pensate for accrued and undistributed income, or recom-

pensed by the Fund as part of the redemption price when

units are redeemed.

The net profit for the financial year in the amount of EUR 10.5

million can be seen from the statement of income and expen-

diture.

The transfer from the Fund in the amount of EUR 22.3 million

comprises unrealised changes in the value of financial instru-

ments, unrealised changes in exchange rates and realised

changes in the value of financial instruments from the

previous year. Since a loss on financial instruments was

realised, a contra item from Fund assets is recognised here

in the amount of the unrealised gain equivalent to the delta

of correspondingly higher valued Fund assets, in order to

replenish the distributable income. Provided that this does

not result in a requirement for the investor to write down the

acquisition cost, the entire distribution calculated in this way

is therefore treated as arising from ordinary income.

This means that EUR 34.4 million is available for distribution.

EUR 0.1 million will be carried forward to new account.

The total distribution in the amount of EUR 34.3 million

(EUR 4.70 per unit) will be made on 1 April 2011.

costs in accordance with section 11 of the BVB, with the

exception of transaction costs. The TER expresses the total

amount of these costs as a percentage of average Fund

assets within a financial year, thus providing results that

comply with international cost transparency standards. The

method of calculation used is in line with the BVI’s recom-

mended method.

The TER for the SEB ImmoPortfolio Target Return Fund is

0.98%.

The transaction-based remuneration includes construc-

tion and purchase fees amounting to EUR 6.3 million. This

represents 0.72% of the average Fund assets.



primarily on a test basis within the framework of the audit.

The audit includes assessing the accounting principles used

for the Annual Report and significant estimates made by the

investment company’s legal representatives. We believe that

our audit provides a reasonable basis for our opinion.

Our audit has not led to any reservations.

In our opinion, based on the findings of our audit, the Annual

Report complies with the statutory regulations.

Frankfurt am Main, 20 April 2011

Eva Handrick ppa. Sandra Horst

Auditor Auditor

In accordance with section 44(5) of the Investmentgesetz

(InvG – German Investment Act), we have audited the Annual

Report of the SEB ImmoPortfolio Target Return Fund for the

financial year from 1 January 2010 to 31 December 2010. The

preparation of the Annual Report in compliance with the pro-

visions of the InvG is the responsibility of the legal representa-

tives of the investment company.

Our responsibility is to express an opinion on the Annual

Report based on our audit.

We conducted our audit in accordance with section 44(5) of

the InvG and the generally accepted standards for the audit of

financial statements promulgated by the Institut der Wirt-

schaftsprüfer (IDW). Those standards require that we plan

and perform the audit such that misstatements materially

affecting the Annual Report are detected with reasonable

assurance. Knowledge of the management of the Fund and

evaluations of possible misstatements are taken into account

in the determination of audit procedures. The effectiveness of

the internal accounting control system and the evidence sup-

porting the disclosures in the Annual Report are examined

Auditors’ Report *

* Translation of the auditor’s report issued in German language on the annual report prepared in German language by the management of SEB Asset Management.



Tax treatment of the distribution per unit

Private assets

EUR

Units held asbusiness assets

(income taxpayers)

EUR

Units held asbusiness assets

(corporation tax payers)

EUR

Distribution 4.7000 4.7000 4.7000

of which tax-free 3.0415 3.0415 3.0415

Tax-free earnings in accordance with double taxation agreements 1.2113 1.2113 1.2113

Reconciliation of Investmentgesetz to Investmentsteuergesetz 1) 1.9012 1.9012 1.9012

less retained income – 0.0710 – 0.0710 – 0.0710

of which taxable – basis of calculation for investment income tax 1.6585 1.6585 1.6585

Investment income tax (25%) 2) 0.4146

of German tax law), in addition to being disclosed in the

Annual Report.

Taxation at private investor levelIf the investment units are held as private assets, the

income distributed on investment units and the deemed

distributed income are classified as investment income for

tax purposes.

25% tax (plus the solidarity surcharge and, if applicable,

church tax) is withheld on investment income. As the tax

withheld is generally definitive (flat tax), this investment

income does not generally have to be disclosed in the

investor’s income tax return.

The scope of the taxable income, i.e. the assessment basis

for the flat tax, was widened significantly as of 2009. In

addition to distributed and deemed distributed investment

fund income and interim profits, investment income inclu-

des gains from the disposal of investment units where these

were acquired after 31 December 2008. 3)

When the tax is withheld, losses incurred are, as a rule,

already offset by the domestic paying agent (units held in

custody) and foreign withholding taxes are taken into

account.

General taxation principlesUnder German law, real estate funds (hereinafter referred to

as “investment funds”) are exempted from all income and

asset-based taxes. Income is taxed at the level of the invest-

ors. Investors can only be taxed if income is distributed or

retained or if investment units are redeemed or sold. In more

detail, taxation is based on the provisions of the InvStG in

conjunction with general tax law.

In line with the principle of transparency, investors should

be treated as if they had generated the income produced by

the investment fund directly. However, exceptions apply to

this general principle in regard to investments in mutual

funds. For example, negative income generated by invest-

ment funds is offset against positive income of the same

kind at the level of the investment fund. If the negative

income cannot be offset in full, this cannot be claimed by

the investor but must be carried forward at investment fund

level and offset against income of the same kind in following

years.

Thus a distinction needs to be made for tax treatment pur-

poses between investment fund income attributable to pri-

vate investors and that attributable to business investors.

The information on the bases of taxation used to determine

the tax payable by investors is published by the investment

company in the electronic Bundesanzeiger (Federal Gazette;

www.ebanz.de) together with a professional attestation

report in accordance with section 5 of the InvStG (determi-

nation of the information in accordance with the provisions

Tax Information for Investors

The distribution for financial year 2010 on 1 April 2011 amounts to EUR 4.70 per investment unit. In accordance with the Circular

from the German Federal Ministry of Finance (BMF) dated 10 February 2011, the new provisions of the Jahressteuergesetz 2010

(German Annual Tax Act 2010) relating to the Investmentsteuergesetz (InvStG – German Investment Tax Act) are not applicable

to the distribution as it was made before 1 July 2011. The following tax treatment applies to the distribution:

1) Tax-free/non-taxable difference between the statement of income and expenditure under investment law and the tax accounts2) Plus the solidarity surcharge of 5.5% and, if applicable, church tax.

3) Gains from the sale of Fund units acquired prior to 1 January 2009 are tax-free as a rule

for private investors (private disposals), provided that the period between acquisition

and disposal exceeds one year.

IP_JB_2010_50_59_Steuer_E.indd 50 06.06.2011 15:12:11 Uhr


Gains from the sale of domestic properties within the

10-year period that are generated at investment fund level

are always taxable for the investor and are subject to with-

holding tax of 25% (plus the solidarity surcharge and, if

applicable, church tax).

This applies regardless of whether they are distributed or

retained. By contrast, gains from the sale of foreign real

estate within the 10-year period in respect of which Ger-

many has waived taxation in accordance with a double taxa-

tion agreement are not subject to withholding tax.

Gains from the sale of shares, equity-equivalent profit parti-

cipation rights and investment units, gains from forward

transactions and income from option premiums generated

at the investment fund level are not recognised at the level

of the investor unless they are distributed. Gains from the

sale of the capital claims listed in section 1(3) sentence 3

number 1 letters a) to f) of the InvStG are also not recog-

nised at the level of the investor if they are not distributed.

Return of capital distributions (e.g. in the form of develop-

ment project interest) are not taxable. A return of capital

distribution occurs where the distribution exceeds the

income for tax purposes generated by the investment fund.

Return of capital distributions that investors receive during

their period of ownership are treated as reducing the cost

from a tax law point of view, i.e. they take effect on the dis-

posal of the investment units.

Taxation at business investor levelInvestors who hold their investment units as business assets

realise business income as a rule.

25% tax (plus the solidarity surcharge) is withheld on this

income. However, the withheld tax is not definitive, so that

tax prepayments made during the course of the year must

be offset against income tax and corporation tax on assess-

ment. Tax need only not be withheld, or withheld tax can

only be refunded, upon presentation of a corresponding

non-assessment certificate. In other cases, investors receive

a tax certificate documenting the tax withheld.

However, the paying agent will not withhold tax on certain

income (e.g. foreign dividends) if the investor is a corpora-

tion with unlimited tax liability or this investment income is

the business income of a domestic business and a declara-

tion to this effect is submitted to the paying agent by a cre-

ditor of the investment income in an official form.

Business investors with unlimited tax liability in Germany

who qualify as cash-basis taxpayers must tax the investment

income when it accrues. Where profits are determined using

accrual-basis accounting, investors must recognise distributed

and deemed distributed income when the claim arises. To this

extent general tax accounting law rules are applied.

If units of distributing investment funds are not held in a

custody account and coupons are presented to a domestic

bank (self-custody), tax of 25% (plus the solidarity

surcharge and, if applicable, church tax) is withheld.

No tax needs to be withheld if the investor is a German tax

resident and submits an exemption instruction, provided

that the taxable income components do not exceed the

lump-sum savings allowance of EUR 801 for single persons

or EUR 1,602 for married couples filing jointly. The same

applies if a non-assessment certificate is submitted or if for-

eign investors furnish proof of their non-resident status for

tax purposes.

The tax withheld is not definitive if, among other things, the

investor’s personal tax rate is lower than the 25% flat tax

rate. In this case, the investment income may be disclosed in

the income tax return. The tax office will apply the lower

personal tax rate and count the tax withheld towards the

investor’s tax liability (Günstigerprüfung – most favourable

tax treatment).

If no tax has been withheld on investment income (for

example where units are held in custody abroad), this

income must be disclosed in the investor’s tax return. This

investment income is then also subject to the 25% flat tax

rate or to the lower personal tax rate in the course of the

assessment.

Even if tax has been withheld and the investor has a higher

personal tax rate, disclosures on investment income may

have to be made in the investor’s income tax return if, for

example, extraordinary personal expenses or special

personal deductions (e.g. donations) are claimed. However,

income-related expenses (e.g. custody account fees) actu-

ally incurred by the investor cannot be taken into account.

In the case of full profit distribution, investors must pay tax

on the distributed income, while in the case of partial distri-

bution, investors must pay tax on both the distributed and

the deemed distributed income. Income is taxable or is

subject to withholding tax in the year it accrues.

In particular distributed or retained domestic rental income,

interest and similar income and dividends from real estate

corporations are taxable and subject to 25% withholding tax

(plus solidarity surcharge and, if applicable, church tax)

where held in custody in Germany. The Investment fund

assets include properties located outside Germany. As a

rule, rental income from such properties accrues to inves-

tors in Germany tax-free due to existing double taxation

agreements. The tax-free income has no effect on the appli-

cable tax rate (no Progressionsvorbehalt – application of the

progression clause).

Gains from the sale of domestic and foreign real estate not

falling within the 10-year period that are generated at the

investment fund level are always tax-free for private investors.



No investment income tax needs to be withheld if a non-

assessment certificate is issued or a valid exemption instruc-

tion is submitted. If the investor can prove that it is non-

resident for tax purposes, then the investment income tax

withheld is limited to income from German dividends.

Foreign investors can only have investment income tax that

has been remitted for them offset or reimbursed within the

framework of the relevant double taxation agreement be-

tween their state of residence and Germany. The Federal

Central Office of Taxation is responsible for reimburse-

ments.

Solidarity surchargeA 5.5% solidarity surcharge is levied on the tax withheld and

remitted when the investment fund distributes or retains

income. The solidarity surcharge can be credited towards

income tax and corporation tax.

Church taxIf income tax has already been levied via the tax withheld by

a German custodian (withholding agent), the church tax

payable on this is levied as a surcharge to the tax withheld in

accordance with the church tax rate for the religious com-

munity/denomination to which the investor belongs. To

this end, persons subject to church tax must inform the

withholding agent in a written application that they are a

member of a particular religion. In the application, married

couples must also declare the proportion of the spouses’

entire investment income constituted by the investment

income attributable to each spouse, so that the church tax

can be allocated, withheld and remitted on this basis. If no

allocation ratio is indicated then the allocation will be made

on a per capita basis. The deductibility of church tax as a

special personal deduction is already recognised as reducing

the tax burden when the tax is withheld.

Foreign withholding taxIn some cases, withholding tax is retained on the investment

fund’s foreign income in the countries of origin. Moreover, in

some cases investments were made in countries in which no

withholding tax is actually levied on the income, although

withholding tax can be asserted (notional withholding tax).

Imputable foreign withholding tax is already recognised as

reducing the tax burden when the tax is withheld.

Capital gains at investor levelIf investment fund units acquired after 31 December 2008

are disposed of by a private investor, the capital gains are

subject to the flat tax rate of 25%.

Provided the investment units are held in a domestic cus-

tody account, the account custodian will deduct the tax. The

withholding of the 25% tax (plus solidarity surcharge and, if

applicable, church tax) can be avoided by submitting a suf-

The Investment fund assets include properties located out-

side Germany. As a rule, rental income from such properties

ac-crues to investors in Germany tax-free due to existing

double taxation agreements. However, investors that are

not subject to the Körperschaftssteuergesetz (KStG – Ger-

man Corporation Tax Act) are subject to the progression

clause for income from countries outside the European

Union and the European Economic Area (EEA).

Only 60% of domestic and foreign dividends, including

those paid by real estate corporations 1), that are distributed

or retained by the investment fund are taxable at the level

of investors subject to income tax (Teileinkünfteverfahren –

partial income method). This income is tax-free as a rule

for investors subject to corporation tax. However, 5% of

dividends are considered as non-deductible business

expenses.

Income that is tax-free in accordance with double taxation

agreements and income subject to the partial income

method must be deducted from taxable and accounting

profit during preparation of the income tax and corporation

tax returns. In the case of income subject to the partial

income method accruing to investors subject to income tax,

only 40% of the amount shall be deducted. In line with

section 2(2a) of the InvStG, distributed or retained interest

income must be taken into account under the earnings

stripping rule within the meaning of section 4h of the

Einkommensteuergesetz (EStG – German Income Tax Act).

Since 2005, 10% of income-related expenses that cannot be

directly allocated to specific income at the investment fund

level have been non-deductible for business investors as

well. In its decree on 11 January 2008, the Rhineland Regio-

nal Finance Office, in agreement with the German Federal

Ministry of Finance and the Ministry of Finance of North

Rhine-Westphalia, expressed the view that business inves-

tors in investment funds are allowed to create a tax adjust-

ment item for the non-deductible income-related expenses

in the case of non-distributing and distributing investment

funds. Investors required to prepare accounts must provide

evidence of the amount of the adjustment item. If the

amount of the adjustment item is not evidenced, the non-

deductible income-related expenses must be added back as

off-balance sheet items when determining taxable income.

Investment income taxThe investment company and domestic custodians (e.g.

custodian banks) are generally required to withhold and

remit investment income tax for the investor. The invest-

ment income tax is generally definitive for private investors.

However, investors have an assessment option and in some

cases an assessment obligation. If the investment units are

held as business assets, an assessment obligation generally

exists.

1) This does not apply to dividends in according with the REIT-Gesetz

(German REIT Act).



original cost, and the interim income at the time of disposal

from the disposal price, so that interim income is not taxed

twice. In addition, retained income that the investor has

already taxed must be deducted from the disposal price so

as to avoid double taxation in this area, too.

Interim profitsInterim profits consist of payments for interest accrued or

deemed to have accrued contained in the sale or redemp-

tion price as well as gains from the sale of capital claims not

listed in section 1(3) sentence 3 number 1 letters a) to f) of

the InvStG that have not yet been distributed or retained by

the investment fund and that were therefore not yet taxable

for the investor (comparable to accrued income on fixed-

interest securities in the case of direct investments). Interest

income and interest claims generated by the investment

fund are subject to income tax and investment income tax in

the case of the redemption or sale of the investment units

by German tax residents. The investment income tax with-

held on interim profits amounts to 25% (plus 5.5% solida-

rity surcharge and, if applicable, church tax).

Interim profits paid on the purchase of investment units can

be deducted as negative investment income for income tax

purposes in the year of payment, provided that the invest-

ment fund calculates an equalisation paid item. They are

already recognised as reducing the tax burden at the cus-

tody account level for the purposes of tax withholding. In

addition, no tax is withheld in the case of an exemption

instruction or submission of a non-assessment certificate.

In calculating interim profits, rental and leasing income, and

income from the valuation and disposal of properties are

not taken into account.

Interim profits are calculated every time the unit value is

determined and are published on each valuation date. The

interim profits are calculated by multiplying the respective

interim profits per investment unit by the number of invest-

ment units given in the purchase/sale note. Interim profits

may also be ascertained regularly from the account and

income statements issued by the banks.

Gains from real estate and sharesThe regulations governing gains from real estate apply both

to investors whose investment units are held as private

assets and to investors whose investment units are held as

business assets. The regulations governing gains from

shares apply only to investors whose investment units are

held as business assets.

Real estate gains consist of foreign rental income that has

not yet accrued or been deemed to have accrued, and real-

ised and unrealised changes in value of foreign real estate

belonging to the investment fund, in respect of which Ger-

many has waived taxation in accordance with a double

ficient exemption instruction or a non-assessment certifi-

cate. Gains and losses incurred can be offset against other

income from the sale of investments (with the exception of

losses from the sale of shares).

Gains from the sale of investment units acquired after 31

December 2008 are tax-free for private investors insofar as

they relate to income that accrued to the investment fund

during the period of ownership, that has not yet been recog-

nised at investor level, and that is tax-free for the investor

under double taxation agreements (gains from real estate

for the proportionate period of ownership).

If units in an investment fund acquired prior to 1 January

2009 are sold by a private investor within one year of

purchase (capital gains tax period), any capital gains are

taxable in principle as income from private disposals. If the

gains from private disposals during a calendar year total less

than EUR 600, these are tax-free (exemption limit). If the

exemption limit is exceeded, the total private disposal gains

are taxable. Losses incurred can be offset against other

income from private disposals or offset against income from

disposals attributable to investment income until the 2013

assessment period.

Capital gains realised on investment units acquired prior to

1 January 2009 and disposed of outside the capital gains tax

period are tax-free for private investors.

Gains from the sale of investment units held as business

assets are tax-free for business investors insofar as they

consist of foreign rental income that has not yet accrued or

been deemed to have accrued and of realised and unreal-

ised investment fund gains from foreign real estate, insofar

as Germany has waived taxation (gain from real estate for

the proportionate period of ownership).

Furthermore, gains from the sale of investment units held as

business assets are tax-free 1) for corporations if the gains

consist of dividends that have not yet accrued or been

deemed to have accrued and of realised and unrealised

investment fund gains from domestic and foreign real estate

corporations (gain from shares for the proportionate period

of ownership).

Natural persons subject to income tax who hold investment

units as business assets have to tax 60% of these capital

gains.

From a tax law point of view, the redemption of investment

units is treated as a sale, i.e. the investor recognises a dispo-

sal gain or loss. Custodians located in Germany calculate the

capital gain as the assessment basis for the tax to be with-

held for investors.

In this context, a gain or loss is the difference between the

disposal price less any relevant expenses and the original

cost. When calculating the capital gain, the interim income

at the time of acquisition must be deducted from the 1) In the case of corporations 5% of the tax-free capital gains are considered to be

non-deductible business expenses and are therefore taxable.



calculated by multiplying this figure by the number of

investment units held by the respective investor.

The taxable income for the 2010 financial year is nega-•

tive. Losses cannot be carried forward at Fund level.

Losses may only be offset in the current year against

other positive income in Austria (e.g. from other equity

interests in real estate funds holding Austrian property

assets).

Austrian income is taxable for private investors and •

investors who determine their profits on the basis of cash

accounting in the year it accrues (here 2011). If no distri-

bution is paid, the deemed distributed income is deemed

to have accrued at the end of four months after the end

of the Fund’s financial year.

Investors who determine their profits using accrual-•

basis accounting must recognise taxable income (distrib-

uted and deemed distributed income) when the claim

arises (= end of the Fund’s financial year; here: 2010).

Taxation at the level of investors with unlimited tax liabilityUnlimited tax liability in Austria applies to individual invest-

ors who are domiciled or have their habitual residence in

Austria (in the case of corporations, which are headquar-

tered in or managed from Austria):

For natural persons, the rate of tax on this income in Aus-•

tria is 25% (investment income tax or special tax rate in

accordance with section 37(8) no. 5 of the Einkommens-

steuergesetz (EStG – Austrian Income Tax Act)), unless

the standard taxation option in accordance with section

97(4) of the EStG is exercised.

For corporations, the tax rate in Austria is 25%.•

For private foundations, taxable income from real estate •

funds offered via public placements is subject to an in-

terim tax rate of 12.5%.

Insofar as Austrian investment income tax is withheld on •

the entire distribution received by the investor (if the

units are held in an Austrian custody account), an adjust-

ment may be made for the portion of the distribution that

is tax-free in Austria (assessment or reimbursement in

accordance with section 240 of the Bundesabgabenord-

nung (BAO – Austrian Federal Fiscal Code)).

For investors who have unlimited tax liability in Austria, •

the Austrian income applicable to one unit in the SEB

ImmoPortfolio Target Return Fund amounts to

EUR 0.2832 for the 2010 financial year (= distribution

per unit of EUR 4.70, minus the portion of the distribution

that is tax-free in Austria of EUR 4.4168). The amount of

income subject to tax in Austria can be calculated by

multiplying this figure (EUR 0.2832) by the number of

units held by the respective investor. Foreign taxes

amounting to EUR 0.0988 per unit are creditable on the

resulting tax amount.

Austrian income is taxable for private investors and •

investors who determine their profits on the basis of cash

accounting in the year it accrues (here 2011). If no distri-

bution is paid, the distribution-equivalent income is

taxation agreement. The investment company publishes

gains from real estate as a percentage of the value of the

investment unit on each valuation date.

Gains from shares comprise dividend income that has not

yet accrued or been deemed to have accrued to the investor,

including from real estate investment corporations, and

realised and unrealised gains and losses from equity

interests held by the investment fund, especially in real

estate investment corporations. The investment company

publishes the gains from shares on each valuation date as

a percentage of the value of the investment unit.

On the date of the purchase and sale of the investment units,

as well as on the reporting date, the investor must multiply

the published percentages by the respective redemption

price to calculate the absolute investor gains from real

estate and shares. The difference between the two figures

represents the investor’s gains from real estate and shares

for the proportionate period of ownership that are relevant

for tax purposes.

NoticeFurther explanations on the tax treatment of investment

fund income can be found in the notice regarding important

tax regulations for investors in the Sales Prospectus.

Tax liability in Austria

Taxation at the level of investors with limited tax liabilitySince the introduction of the Immobilien-Investmentfonds-

gesetz (ImmoInvFG – Austrian Real Estate Investment Fund

Act), a limited tax liability has been in force in Austria in re-

spect of the gains generated by non-Austrian resident

investors from Austrian real estate held by the investment

fund. Tax is levied on regular rental income and on the

increases in the value of the Austrian real estate resulting

from the annual valuation. This limited tax liability applies

to individual investors who are neither domiciled nor have

their habitual residence in Austria (in the case of corpora-

tions, which are neither headquartered in nor managed

from Austria):

For natural persons, the rate of tax on this income in Aus-•

tria is 25%. If the investor’s taxable income in Austria

amounts to no more than EUR 2,000 per calendar year,

the investor is not required to submit a tax return, and

the income remains tax-free. If this limit is exceeded or if

a notice to this effect is issued by the Austrian tax office,

a tax return must be filed in Austria.

For corporations, the tax rate in Austria has been 25% •

since 2005. There is no statutory allowance as there is for

natural persons.

The income applicable to one investment unit in the SEB •

ImmoPortfolio Target Return Fund subject to tax in Aus-

tria amounts to EUR – 0.1842 for the 2010 financial year.

The amount of income subject to tax in Austria can be



investors who held at least 72,937 units (corresponding

to approximately EUR 9.2 million) in the SEB Immo

Portfolio Target Return Fund as of 1 January 2011 must

be named.

This disclosure has no financial repercussions for you, •

nor does it require you to file a return with or inform the

French tax authorities if you held less than 5% of the

Fund on 1 January and this is the only investment you

have in French property.

If, on 1 January 2011, your equity interest amounted to or •

exceeded 5%, or if you held additional properties in

France either directly or indirectly, you may be liable for

tax in your own right on account of your investment in

French real estate and you must ensure that you are

exempted from taxation by providing the French tax

authorities with your own return.

However, various groups of investors may be covered by •

general exemptions; for example, natural persons and

listed companies are exempted from the 3% tax. In these

cases, no separate return need be submitted. For more

information on the potential obligation to submit a

return, we recommend that you contact a French tax

advisor.

So that the Fund can comply with its obligation to submit •

a return and thus avoid the French 3% tax being levied,

we ask that you send us a written declaration (see the

back cover page for contact details) consenting to the

disclosure of your name, address, the number of units

held and the percentage held to the French tax authori-

ties if your interest in the SEB ImmoPortfolio Target

Return Fund amounted to or exceeded 1% on 1 January

2011.

deemed to have accrued at the end of four months after

the end of the Fund’s financial year.

Investors who determine their profits using accrual-basis •

accounting must recognise taxable income (distributed

and deemed distributed income) when the claim arises

(= end of the Fund’s financial year; here: 2010).

France: Current position and disclosure obligations in relation to the 3% taxSince 1 January 2008, real estate funds have been subject

to a special French tax (known as the “French 3% tax”),

which is levied annually on the market value of properties

located in France. This 3% tax is designed to apply to

French citizens and institutions that hold French properties

indirectly via funds. Despite the minor significance for

investors in German mutual funds, the SEB ImmoPortfolio

Target Return Fund is also required to comply with the

reporting requirements.

The French law provides for the exemption from the 3% tax

for French real estate funds and comparable foreign funds.

In the opinion of the French tax authorities, German real

estate funds are not comparable in principle with French

real estate funds, meaning that they are not exempt in prin-

ciple from the 3% tax.

In order to be exempt from this tax, the French tax autho-•

rities are of the opinion that the SEB ImmoPortfolio Tar-

get Return Fund must issue an annual return specifying

its French properties on 1 January of each year and dis-

closing the names of those unit holders who held 1% or

more of the fund as of 1 January of each year. Thus,



Private assets

Amount per unitin EUR

1) Business assets(income tax

payers)Amount per unit

in EUR

2) Business assets(corporation tax


in EUR

3)

Section 5(1) sentence 1 numbers 1 and 2 of the InvStG letter:

a) Distribution amount (resolution on the distribution dated 25 March 2011) 4) 5.1184433 5.1184433 5.1184433

Return of capital distributions contained in this amount 2.3196058 2.3196058 2.3196058

Deemed distributed income from previous years contained in the distribution 0.0000000 0.0000000 0.0000000

Memo item: distribution amount paid, including investment income tax withheld 4.7000000 4.7000000 4.7000000

b) Income distributed 2.7988375 2.7988375 2.7988375

of which non-deductible income-related expenses as defined by section 3(3) sentence 2 no. 2 of the InvStG 0.0000000 0.0000000 0.0000000

Deemed distributed income (amount partially retained) 0.0709594 0.0709594 0.0709594

of which non-deductible income-related expenses as defined by section 3(3) sentence 2 no. 2 of the InvStG 0.0709594 0.0709594 0.0709594

c) Included in distributed income

aa) (repealed) – – –

bb) Tax-free capital gains as defined by section 2(3) no. 1 sentence 1 of the InvStG in the

version applicable as of 31 Dec. 2008 0.0000000 – –

cc) Income as defined in section 3 no. 40 of the EStG (German Income Tax Act) 5)– 0.0000000 –

dd) Income as defined in section 8b(1) of the KStG (German Corporation Tax Act) – – 0.0000000

ee) Capital gains as defined in section 3 no. 40 of the EStG 5)– 0.0000000 –

ff) Capital gains as defined in section 8b(2) of the KStG – – 0.0000000

gg) Income as defined in section 2(3) no. 1 sentence 2 of the InvStG in the version applic-

able as of 31 Dec. 2008, insofar as the income is not investment income as defined in

section 20 of the EStG 0.0000000 – –

hh) Tax-free capital gains as defined in section 2(3) of the InvStG 0.0000000 – –

Included in the deemed distributed income (amount partially retained)

cc) Income as defined in section 3 no. 40 of the EStG 5)– 0.0000000 –

dd) Income as defined in section 8b(1) of the KStG – – 0.0000000

Cumulatively included in the distribution and deemed distributed income (amount partially retained)

ii) Income as defined in section 4(1) of the InvStG 1.2112833 1.2112833 1.2112833

jj) Income as defined in section 4(2) of the InvStG for which no deduction was made in

accordance with section (4) 6)0.2309029 0.2309029 0.2309029

of which relating to income as defined in section 8b of the KStG or section 3 no. 40 of

the EStG – 0.0000000 0.0000000

kk) Income as defined in section 4(2) of the InvStG giving rise to an entitlement to credit tax

deemed to have been paid against income or corporation tax in accordance with an

agreement to avoid double taxation 6)0.0000000 0.0000000 0.0000000


the EStG – 0.0000000 0.0000000

ll) Income as defined in section 2(2a) of the InvStG 7)– 0.2804564 0.2804564

d) Portion of distribution and deemed distributed income warranting the crediting or reimbursement of investment income tax as defined in section 7(1) to (3) of the InvStG 1.6585136 1.6585136 1.6585136

e) Amount of investment income tax to be credited or reimbursed as defined in sec-tion 7(1) to (3) of the InvStG 0.4146284 0.4146284 0.4146284

Documentation of the bases for taxation in accordance with section 5(1)

sentence 1 nos. 1 and 2 of the InvStG



Private assets

Amount per unitin EUR

1) Business assets(income tax


in EUR

2) Business assets(corporation tax


in EUR

3)

f) Amount of foreign tax incurred on the income as defined in section 4(2) of the InvStG that is included in distributed and deemed distributed income and

aa) Creditable in accordance with section 4(2) and (3) of the InvStG in conjunction with

section 34c(1) of the EStG or an agreement to avoid double taxation if no deduction was

made in accordance with section 4(4) of the InvStG 8)0.0577257 0.0685515 0.0685515


the EStG – 0.0000000 0.0000000

bb) Deductible in accordance with section 4(2) and (3) of the InvStG in conjunction with

section 34c(3) of the EStG if no deduction was made in accordance with section 4(4)

of the InvStG 0.0000000 0.0000000 0.0000000

cc) Deemed to have been paid in accordance with an agreement to avoid double taxation

and creditable in accordance with section 4(2) and (3) of the InvStG in conjunction with

this agreement 8)0.0000000 0.0000000 0.0000000


the EStG – 0.0000000 0.0000000

g) Amount of depreciation or depletion in accordance with section 3(3) sentence 1 of the InvStG 2.5916955 2.5916955 2.5916955

h)

Amount of any corporation tax credit utilised by the distributing corporation in accordance with section 37(3) of the KStG – – 0.0000000

1) Investment units that unit holders hold as private assets according to tax law.2) Investment units that unit holders taxed in accordance with the EStG hold as

business assets.3) Investment units that unit holders taxed in accordance with the KStG hold as

business assets.4) Distribution in accordance with the definition given in the Circular from the Fed-

eral Ministry of Finance (BMF) dated 18 August 2009, section 12.

5) Income is disclosed in full (of which 40% tax-free in accordance with the partial

income method).6) Income is disclosed in full.7) The amount is disclosed net.8) Withholding taxes are disclosed in full in business assets.



Attestation report in accordance with section 5(1) sentence 1 number 3

of the InvStG on the preparation of the tax law information

The scope of our audit did not include an examination of the

completeness and accuracy of the documents and informa-

tion presented to us in the same manner as an audit under

German commercial law; to this extent we relied on the

audit opinion issued by the auditor of the annual financial

statements and did not undertake any further audit activi-

ties. In addition, we have assumed that the documents and

information presented to us by the Company are complete

and accurate.

The determination of the tax law information in accordance

with section 5(1) sentence 1 numbers 1 and 2 of the InvStG

is based on the interpretation of the tax laws to be applied.

Insofar as several possible interpretations exist, the decision

on this is the responsibility of the management of the Com-

pany. When preparing the determination, we satisfied our-

selves that the decision reached was justifiably supported in

each case by legal materials, court rulings, relevant special-

ist literature, and published opinions of the fiscal authori-

ties. Attention is drawn to the fact that future legal develop-

ments and, in particular, new insights from court rulings

could necessitate a different assessment of the interpreta-

tion adopted by the Company.

On the basis of this, we certify to the Company in

accordance with section 5(1) sentence 1 number 3 of the

InvStG that the information in accordance with section 5(1)

sentence 1 numbers 1 and 2 of the InvStG was determined in

accordance with the provisions of German tax law.

Frankfurt am Main, 29 March 2011

PwC FS Tax GmbHWirtschaftsprüfungsgesellschaft

Steuerberatungsgesellschaft

Markus Hammer Timo Hillebrand

Tax consultant

To the SEB Investment GmbH investment company (herein-

after referred to as the Company):

The Company has appointed us to determine the above-

mentioned tax law information for the SEB ImmoPortfolio

Target Return Fund investment fund in accordance with

section 5(1) sentence 1 numbers 1 and 2 of the Investment-

steuergesetz (InvStG – German Investment Tax Act), and to

submit an attestation report in accordance with section 5(1)

sentence 1 number 3 of the InvStG that the tax law informa-

tion was determined in compliance with the provisions of

German tax law.

The financial reporting for the Fund, which serves as the

basis for the determination of the tax law information in

accordance with section 5(1) sentence 1 numbers 1 and 2 of

the InvStG in conjunction with the requirements of German

tax law, is the responsibility of the legal representatives of

the Company.

Our responsibility was to determine the information in

accordance with section 5(1) sentence 1 numbers 1 and 2 of

the InvStG for the Fund in accordance with the provisions of

German tax law on the basis of the books and records and

the annual report. To this end, the Fund’s income and

expenditure were identified as part of a tax law reconcilia-

tion in accordance with German tax provisions. To the

extent that the Company has invested funds in units of tar-

get investment funds, our activities were limited exclusively

to the correct incorporation of the tax law information made

available for these target investment funds on the basis of

certificates supplied to us in accordance with 5(1) sentence

1 number 3 of the InvStG. We did not review the correspond-

ing tax law information. Figures from an equalisation paid

item were also included in the determination of the tax law

information.



Bodies

Investment CompanySEB Investment GmbH

Rotfeder-Ring 7, 60327 Frankfurt am Main

P.O. Box 111625, 60051 Frankfurt am Main

Phone: +49 69 27 299-1000

Fax: +49 69 27 299-090

Subscribed and paid-up capital EUR 5.113 million

Liable capital EUR 11.133 million

(as of 31 December 2010)

Frankfurt am Main Commercial Register, HRB 29859

Established: 30 September 1988

ManagementBarbara A. Knoflach

Matthias Bart

Choy-Soon Chua

Siegfried A. Cofalka

Alexander Klein (from 1 January 2011)

Thomas Körfgen

Axel Kraus

Supervisory BoardFredrik Boheman

Chairman of the Board of Management of SEB AG,

Frankfurt am Main

– Chairman –

Jan Sinclair

Member of the Board of Management of SEB AG,

Frankfurt am Main

– Deputy Chairman –

Peter Kobiela

Auditors

PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft,Frankfurt am Main

Shareholders SEB AG, Frankfurt am Main (6%)

SEB Asset Management AG, Frankfurt am Main (94%)

Expert Committee AUlrich Renner, Dipl.-Kfm.

Publicly certified and sworn expert for the valuation of

developed and undeveloped properties, Wuppertal

Prof. Michael Sohni, Dr.-Ing.


developed and undeveloped properties, Darmstadt

Klaus Thelen, Dipl.-Ing.


developed and undeveloped properties, Gladbeck

Expert Committee BKlaus Peter Keunecke, Dr.-Ing.

Publicly certified and sworn expert for the valuation of rents

and developed and undeveloped properties, Berlin

Günter Schäffler, Dr.-Ing.

Publicly certified and sworn expert for the planning and

control of construction costs, the valuation of developed

and undeveloped properties, rents for properties and

buildings, Stuttgart

Bernd Fischer-Werth, Dipl.-Ing., Dipl.-Wirtsch.-Ing.


developed and undeveloped properties, Wiesbaden


Investment Company:

SEB Investment GmbH

Rotfeder-Ring 7

60327 Frankfurt am Main

P.O. Box 111625

60051 Frankfurt am Main

Internet: www.sebassetmanagement.de

Phone: +49 69 27 299 -1000

Fax: +49 69 27 299 - 090

Sales:

SEB Asset Management AG

Rotfeder-Ring 7

60327 Frankfurt am Main, Germany GEA

M5

102

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Documents

SEB ImmoPortfolio Target Return Fund · SEB ImmoPortfolio Target Return Fund Annual Report as of 31 December 2010 SEB INVESTMENT GMBH IP_JB_2010_01_Umschlag_E.indd 1 06.06.2011 15:56:07