This year, the DERECO Fund Services GmbH, Cologne, is working on a concept for a participation
model for an associated Dutch family office in the form of a private placement with property investments
in Germany. So far, equity capital commitments of 20 million euros have already been received for this
real estate fund, which is structured as a blind pool. The investment volume aimed at amounts to
approx. 65 million euros.

For the realisation of the agreed investment strategy, the company is concentrating on acquiring
fully let properties in pristine condition (new building projects as forward deals or 2- to 3-year-old
existing properties) of a high standard in the Top 10 cities of the Federal Republic of Germany.
Smaller and attractive cities with correspondingly high buying power and centrally located in the
immediate vicinity of the Top 10 are also being taken into consideration for the establishment of the planned portfolio. Decisive for all locations is the fact that these are exclusively established, inner-city 1A and 1B locations and that they are convincing on the grounds of their individual micro-locations. For this real estate fund, DERECO Fund Services is only considering investment properties that, with a volume of 10 million euros each up to a maximum of 25 million euros, will be used as retail, residential or office buildings and contribute towards compiling a balanced portfolio. In doing so, apart from purely single-use properties, investments can also be convincing that offer mixed usage and average lease terms of more than five years. Single tenant investments are completely out of the question in their investment strategy.

The independent capital and property acquisition and corresponding concep-tion resources enable DERECO Fund Services to offer a cost-optimised participation product comparable with a direct investment. For the investor of the fund, that even with an investment strategy that can be described as conservative (Core Plus), planned returns of approx. nine per cent p.a. (acc. to the IRR method) are viable.

Therefore, with regard to the purchase prices of each investment, acquiring factors from 15- to 17-fold of the annual net rent will be taken into consideration and aimed at. The sustainable success of the investments made will be secured by professional asset management that will, likewise, be taken on by DERECO Fund Services. At present, the initiators are already carrying out exclusive inspections of three properties in Frankfurt
and Cologne. The first acquisitions can be expected in July 2012. A further fund is also being conceived at present and will follow in the not-too-distant future.