Deka-ImmobilienEuropa_JB0906_engl

					Annual report
for the financial year
ended 30 September 2006
Deka-ImmobilienEuropa
– a real-estate fund formed under German law –




                                             Deka Immobilien Investment GmbH
                                                    A company of the Ÿ group
                                                                                              Editorial




Ladies and gentlemen,

The financial year 2005/2006 was perhaps the most difficult and certainly one of the
most difficult experienced by the open-ended real-estate fund sector in the whole of
its almost 40 years’ history. In contrast, the current financial year 2006/2007 could turn
out to be one of the best, now that the sector – and especially our group – has not
only successfully passed the tests confronting it, but also used the ‘hype’ mood prevail-
ing in what was in many cases a sellers’ market to put through the structural changes
that were long overdue in the portfolios of individual funds. Deka Immobilien Invest-
ment GmbH has now completed its first full financial year following restructuring, and
experts who have closely observed the process of strategic and operational realignment
pursued by Deka Immobilien and its public real-estate funds over the last twelve months
all agree that the targets have been reached and even exceeded. Scope, an indepen-
dent firm of consultants and analysts, has paid tribute to our energetic restructuring
efforts in a very tangible way by naming Deka Immobilien as one of the three best of
27 management companies in the open-ended real-estate fund sector and also award-
ing it one of the coveted Scope awards for its activities in the German market. The jury
rewarded its management’s excellent ratings in the six categories of Product Quality,
Transparency, Continuity, Integrity, Innovative Powers and Strategic Vision with the
accolade ‘Best Open-ended Real-estate Fund Targeting the German Market’.

This kind of praise from acknowledged experts is important because it reassures you,
our clients, that your confidence in Deka Immobilien’s products was and still is justified.

But the performance of our funds carries greater weight than praise from outsiders.
The results now being reported for last financial year demonstrate the rewards being
reaped by investors who remained loyal to Deka Immobilien. With a value appreciation
of 2.01 % (last year: 2.02 %) as of 30 September 2006 and a special distribution of
EUR 8.30 (approx. 17 %) Deka-ImmobilienFonds is demonstrating that the downward
trend has been finally and successfully reversed. Deka-ImmobilienEuropa has also made
a big leap forward with performance of 4.13 % (last year: 2.61 %). With a yield of
5.03 % (last year: 3.21 %) Deka-ImmobilienGlobal delivers proof of the attractiveness
of its carefully planned and disciplined investment processes. We have, moreover,
approved a ‘full distribution’ for both Deka-ImmobilienEuropa (6.80 %) and Deka-
ImmobilienGlobal (6.53 %).

The assets of our funds are being optimised by our strategic decision to jettison our
former policy of acquiring real estate and keeping it in the portfolio for years or even
decades in favour of a ‘buy-and-sell’ policy where we review results and performance
against forward planning figures and resell properties to the benefit of our investors
when good opportunities arise. This new policy, together with strict profit and cost
management and our maxim ‘Performance = Cash’, has helped us to pick up consider-
able speed during the year under review. The objective now is to keep this speed up.
The foundation stone has been laid.




                                                                                                      3
    It is, of course, also important to have a good eye for the right investment – to avoid
    overheated markets and focus on continents, countries and regions where yields still hold
    a promise of sustainable growth potential. This may take more time and money, but is
    indubitably better than acquiring ‘tomorrow’s write-downs’.

    We invite you to accompany us along this road. The Performance = Cash formula will
    make it worth your while.



    Sincerely yours,




    Reinhardt Gennies
    Chairman of the Management Board




4
                                                                                                  Contents




Report of the Management Board                                                               6

Introduction                                                                                 6
Situation on real-estate markets                                                             7
Purchases and sales                                                                         10
Renovation and development projects                                                         14
Letting situation                                                                           14
Analysis of portfolio                                                                       15
Currency and loan portfolio management                                                      15
Analysis of percentage yields                                                               16
Tax accrual for profits on disposal                                                         17
Outlook                                                                                     18

Analysis of letting data                                                                    20

Analysis of yields and value adjustments                                                    23

Movements in fund assets                                                                    28

Explanatory notes to movements in fund assets                                               29

Schedule of assets as of 30 September 2006                                                  32

Explanatory notes to schedule of assets                                                     34

Four-year summary of Deka-ImmobilienEuropa’s financial development                          37

Schedule of real estate included in the assets as of 30 September 2006                      38

Schedule of real-estate purchases and sales as of 30 September 2006                         44

Schedule of money market instruments, investment shares,
securities and hedging instruments as of 30 September 2006                                  45

Statement of revenue and expenses
for the period from 1 October 2005 to 30 September 2006                                     48

Notes to Statement of Revenue and Expenses                                                  50

Auditor’s opinion                                                                           53

Supplementary information on real estate held by the fund                                   54

Tax information                                                                             60

Tax liability pursuant to Section 5, Para. 1 (Items 1 and 2)
of German Investment Tax Act (InvStG)                                                       65

Certificate issued pursuant to Section 5, Paragraph 1 (Item 3 of 1st. sentence)
of German Investment Tax Act                                                                66

Key data on Deka-ImmobilienEuropa at a glance                                               67

Your partners in the Ÿ group                                                                68

This annual report will remain valid in conjunction with the sales prospectus until 31 December
2007. The report for the six months to 31 March 2007 must also be appended as from the date
of its publication.

N.B. The percentages for items contained in tables and graphs are rounded off and may not
always add up to 100 %.                                                                                  5
Report of the Management Board




                      Deka-ImmobilienEuropa – Key data.

                      Key data as of balance sheet closing date:
                      - Fund’s net assets                                                                 EUR   6,863,886,628
                      - Total real estate (gross)                                                         EUR   6,119,393,347
                               - of which: held directly                                                  EUR   4,706,681,662
                               - of which: held through real-estate companies                             EUR   1,412,711,685
                      - Total number of properties belonging to fund                                                       84
                               - of which: held through real-estate companies                                              17
                      - Letting status as of 30 September 2006                                                         94.2 %
                               - Average for year                                                                      92.5 %

                      Changes during year under review
                      - Number of properties purchased                                                                     0
                      - Number of properties sold                                                                         15

                      - Net cash flow                                                                     EUR -2,068,158,385

                      -   Dividend distribution on                                                           05 January 2006
                      -   Dividend per unit                                                                         EUR 1.44
                      -   Yield (calculated by the BVI method)                                                        4.13 %
                      -   Unit redemption price                                                                    EUR 48.38
                      -   Unit issue price                                                                         EUR 50.92




                     Introduction                                               tional real-estate markets also enabled us
                                                                                to make significant reductions in Deka-
                     The strategic objective of the Deka-Immo-                  ImmobilienEuropa’s vacancy ratio, which
                     bilienEuropa fund management for the                       gave us a sound basis from which to start
                     financial year 2005/2006 now under review                  operations in financial year 2006/2007.
                     was to create a high-yield core portfolio.
                     And, although Deka Immobilien had                          Structure of fund’s assets
                     anticipated a rise in investor demand as                   Partly as a result of the crisis in the real-
                     from the beginning of 2005, it had initially               estate fund sector at the turn of the
                     underestimated the strength and the slope                  financial year 2005/2006, Deka-Immo-
                     of this trend. Steady work on the portfolio,               bilienEuropa experienced a total cash
                     aided to a certain extent by a little bit                  outflow of approx. EUR 2,068 million from
                     of luck in the markets, has enabled us to                  unit redemptions during the year under
                     more than achieve our set objective.                       review. As of balance sheet closing date,
                                                                                the fund’s assets totalled just under EUR
                     Sale of two properties in Sydney has                       6.9 billion. The real estate portfolio con-
                     brought us closer to our objective of shift-               sists of 84 properties. 17 properties are
                     ing the focus of Deka-ImmobilienEuropa’s                   held through real-estate companies and
                     portfolio to Europe, at the same time                      one property (Général Foy in Paris) is cur-
                     reducing the high cost of currency hedg-                   rently under construction. With this latter
                     ing. The strong demand on the interna-                     property valued in accordance with its




6
completion status at balance sheet closing      The tax-exempt part of this distribution for
date, the fund’s total real estate assets as    private investors is EUR 2.7904 per unit.
of 30 September 2006 were valued at
approx. EUR 6.1 billion (last year EUR 7.3      Please refer to pages 60 to 66 of this report
billion), of which real-estate companies        for more information on taxation of the
located in other EU countries accounted         distribution and of tax treatment of distri-
for 69.8 % (last year 62.9 %).                  butions to investors holding their units as
                                                corporate assets.
The liquidity ratio as of 30 September 2006
was 27.4 %. After deduction of funds
already earmarked for specific purposes         Situation on real-estate markets
the liquidity ratio calculated in accordance
with the German Investments Act (InvG)          Germany
was 13.3 % – and has declined further           Letting market
to a level of 11.3 % as of 30 November          Although vacancy rates are, in general,
2006.                                           tending to stagnate in Germany’s most
                                                important property markets, analysis
Value appreciation                              reveals a trend to lower vacancy rates for
During financial year 2005/2006 Deka-           space of better quality (Category A) and
ImmobilienEuropa achieved performance           correspondingly higher vacancy rates for
(calculated by the BVI method) of 4.13 %        space in older property. In view of the low
to yield investment earnings of EUR 1.93        level of new building activity it seems
per unit. Over the period since its launch      probable that vacancy rates have peaked
the fund has achieved a total value appre-      out and will now start to drop. As usual,
ciation of 55.8 %, equivalent to 4.68 %         there are wide differences in regional
per annum.                                      trends, with Munich leading the field by
                                                a comfortable margin. Space take-up in
Distribution                                    Frankfurt, which had been steadily rising
Deka-ImmobilienEuropa’s dividend distri-        during the first half of the year, accelerat-
bution to holders of actual unit certificates   ed steeply during the third quarter as a
takes place on 05 January 2007 against          result of several large lettings. Space take-
presentation of the tenth coupon and will       up in Düsseldorf and Hamburg continued
be EUR 3.29 per unit. This is equivalent to     at last year’s level and returned to normal
6.80 % of the unit price as of 30 Septem-       level in Berlin after peaking in 2005.
ber 2006. Unit-holders whose holdings are       Although peak rentals have remained sta-
recorded in blanket certificates will also      ble, landlords are still finding it necessary
receive a distribution of EUR 3.29 per unit     to offer rent-free periods and other incen-
on 05 January 2007. The distribution to         tives to prospective tenants.
unit-holders will reduce the unit price by
the amount of the distribution.                 We expect rentals for retail space at loca-
                                                tions with high shopper frequencies to




                                                                                                7
     Overview of leading German office markets

                                             (Nominal) peak rental level    Vacancy rate (%)
                                           EUR /m2/month Change over              inc.
                                                              last year        subletting
     Berlin                                     20.5             ➝               11.8
     Düsseldorf                                 20.0                             11.5




                                                               ➝
     Frankfurt                                  31.0             ➝               18.7
     Hamburg                                    21.0                               9.9




                                                               ➝ ➝
     Munich                                     27.0                               8.2

     Source: PMA                                                              Status as of 30 Sep. 2006




    remain stable. There is persistent demand       ing to the market’s peak segment. The
    from large national and international           greater part of German institutional and
    retail chains, especially from the clothing,    other professional investors are currently
    telecommunications and book sectors,            to be found amongst the sellers. The vol-
    seeking space for branches mainly in prime      ume of transactions on the German mar-
    shopping districts and in heavily frequent-     ket during the first nine months of 2006
    ed urban shopping centres. In contrast,         was 50 % up on the full year 2005 at
    vacancy rates for retail space at 1b and        approx. EUR 30 billion.
    suburban locations are going up and the
    space is in some cases being converted to
    other uses.                                     Europe
                                                    Letting market
                                                    The favourable conditions prevailing dur-
    Investment market                               ing the previous year continued into 2006
    The volume of investment in the German          in most European markets. The positive
    commercial real-estate market in 2006           trends in the services sector brought sig-
    was considerably higher than in the previ-      nificant rises in space take-up. Demand
    ous year and exceeded all expectations.         came mainly from corporate service
    Foreign investors (including foreign funds)     providers like banks, other financial service
    were most in evidence as buyers, account-       companies and telecommunications com-
    ing for over 80 % of the total. They bene-      panies. Although shrinkage in the volume
    fited from the continuing favourable            of new building continues to depress
    financing conditions obtainable and were        vacancy rates in most cases, this does not
    attracted by yields which are (still) higher    apply to the Amsterdam and also the Brus-
    than those attainable elsewhere in Europe.      sels office markets where we expect to see
    Sellers are nevertheless still having to        only slow inroads into the excess supply of
    make significant price concessions when         space, partly because of the new building
    marketing commercial space not belong-          activity still going on there. Despite the




8
 Overview of leading European office markets

                                         (Nominal) peak rental level       Vacancy rate (%)
                                        EUR /m2/year    Change over              inc.
                                                          last year           subletting
 Amsterdam                                   250             ➝                  20.3
 Brussels                                    230             ➝                  10.6
 London                                    1,246                                  6.9




                                                           ➝ ➝
 Madrid                                      354                                  7.0
 Milan                                       430             ➝                  10.2
 Paris                                       642                                  5.6



                                                           ➝
 Source: PMA                                                                Status as of 30 Sep. 2006




wide range of tenant incentives on offer in     North America
most markets, the relationship between          With falling vacancy rates and positive net
nominal and actual rentals has so far tend-     absorption (actual net increase in area of
ed downwards in only a few markets, for         space occupied) the US office markets
example, in London which is traditionally a     continue to expand. Midtown Manhattan,
trend-leader.                                   New York’s core office market, and central
                                                locations in Washington D.C. have the
                                                lowest vacancy rates, and both these cities
Investment market                               report steady upward trends in Category A
The European real-estate investment mar-        segment lettings. The west coast market is
ket is continually making and breaking          similarly buoyant with vacancy rates in San
new volume records. This trend is being         Francisco and Los Angeles down to near
fuelled by sales from fund portfolios. Cross-   the 10 % mark. This positive trend has
border investments financed from global         now spread further to include central loca-
sources are on the increase and over two        tions in Chicago.
thirds of the deals are currently being
struck in the three major markets – Great
Britain, France and Germany. Demand for         An increase in the volume of deals in the
properties offering reliable yields continues   US real-estate investment market is main-
to outstrip supply. It seems probable that      taining the downward pressure on net
this situation will persist throughout the      initial yields (cap rates), as record prices are
whole of Europe in view of current high         paid for top properties. Average yield on
liquidity levels and interest rates which are   properties at central locations in US cities
still relatively low despite the hikes seen     is now running at approx. 7.2 % and the
at the beginning of 2006.                       figure for top locations in Manhattan and
                                                Washington D.C. has hit a historical low
                                                of around 5 %. In view of the favourable
                                                interest rates still obtainable and the




                                                                                                        9
      Overview of leading international office markets

                                                                    (Nominal) peak rental level    Vacancy rate (%)
                                                                   EUR /m2/year    Change over           inc.
                                                                                     last year        subletting
      New York                                                          526                               4.4




                                                                                      ➝
      Washington D.C.                                                   370             ➝                 6.4
      Tokyo                                                           1,092                               2.7




                                                                                      ➝ ➝
      Sydney                                                            360                             10.4

      Source: CB Richard Ellis, Jones Lang LaSalle, Toro Wheaton                                     Status as of 30 Sep. 2006




     absence of comparable, high-yield invest-                             Demand for office space in Sydney, Aus-
     ment opportunities, no significant change                             tralia, during the year to date has been
     in this picture seems likely during financial                         remarkably strong and is spearheaded by
     year 2006/2007.                                                       an increase in the inflow of capital from
                                                                           Asian and US sources. This, together with
                                                                           the slackening in volume of new building
     Asia-Pacific region                                                   which started in 2004, has helped bring
                                                                           down vacancy rates, especially of high-
     Tokyo’s real estate market is generally                               quality space.
     regarded as an index of Japan’s economic
     prosperity. Business in the investment mar-
     ket continues brisk despite the extremely                             Purchases and sales
     low peak yields of 3.0 % to 3.5 % obtain-
     able from office buildings. Fear of interest                          As already explained in the half-year report,
     rate increases is damped down by specula-                             the financial year 2005/2006 saw a variety
     tion that these will be cancelled out by                              of measures aimed at optimising yield on
     rises in rental levels. During the course of                          the fund’s real-estate portfolio. The trad-
     the first half-year the peak rental level has                         ing-oriented approach introduced by the
     risen to the equivalent of EUR 1,092 per                              Deka-ImmobilienEuropa management had
     m2 per year and availability of Category A                            two main objectives – firstly, to actively
     office space is very limited indeed. For this                         take advantage of market opportunities
     reason many companies are now renting                                 available to investors, secondly, to contin-
     space that will not come on to the market                             ue the process of remedying disequilibri-
     until 2007, 2008 or even 2009. This situa-                            um resulting from excessively high concen-
     tion, plus the only moderate level of new                             trations of the fund’s assets in some sec-
     building activity, has reduced the vacancy                            tions of the market. Action was also taken
     rate in Tokyo’s five central districts to a                           to create a sound basis for future perfor-
     level of 2.7 %.                                                       mance by divesting it of some underper-
                                                                           formers.




10
  Properties with significant vacancy rates (earnings-related vacancy rate of over 33 %)

 Property                                 Average vacancy rate    Vacancy rate         Share of total
                                                   during year at 30 Sep. 2006           vacant space
                                                 under review                         at 30 Sep. 2006
 81541 Munich                                            95 %             93 %                 11.5 %
 Hohenwaldeckstraße 1/St.-Martin-Straße 60
 80339 Munich                                                29 %           37 %               8.4 %
 Barthstraße 22-24, „RONDO“
 81829 Munich                                                51 %           45 %               8.0 %
 Graf-zu-Castell-Straße 1/Josef-Wild-Straße 20,
 “Messe-Campus Riem“
 1101 CM Amsterdam (Southeast)                              100 %          100 %               7.9 %
 Herikenbergweg 74-108, Plaza Arena Block 1, “Jupiter“
 10117 Berlin                                                98 %           98 %               5.9 %
 Reinhardtstraße 52, “Kronprinzen Karree“
 1200 Brussels                                               67 %           72 %               4.9 %
 Avenue Marcel Thiry 79/81
 10117 Berlin                                                44 %           29 %               4.5 %
 Friedrichstraße 50-55 , “Checkpoint Charlie“
 80807 Munich                                                36 %           32 %               2.9 %
 Wilhelm-Wagenfeld-Straße 24, “carrea“
 1027 Budapest                                               38 %           37 %               2.5 %
 Horvát utca 14-24, “Central Business Center“
 20097 Hamburg                                               57 %           75 %               1.7 %
 Wandalenweg 30
 1000 Brussels                                               84 %           64 %               1.6 %
 Boulevard du Régent 47-48
 34117 Kassel                                                33 %           46 %               1.2 %
 Königsplatz 55/Wolfsschlucht 24 a, “Henschelhaus“
 1000 Brussels                                               46 %           18 %               0.8 %
 Boulevard du Régent 45-46/Rue Ducale 83




15 properties with a total sales value of                The sales negotiated on behalf of the fund
around EUR 1.13 billion were disposed of                 made due allowance for future allocation
during financial year 2005/2006. No new                  targets, but also took advantage of oppor-
properties were acquired for the real-                   tunities to realise capital gains offered by
estate portfolio. This reflects the tense                current market trends. Four properties
price situation currently prevailing in the              were sold during the first half of the finan-
markets and conforms to our policy of                    cial year (two in Great Britain, one in the
avoiding the sort of compromises on real-                Netherlands and one in Spain).
estate quality or risks and on the price paid
for them, which could adversely affect                   The price obtained for the Coleman Street
fund performance.                                        office building in London, which was
                                                         acquired for the fund in 2002, was signifi-




                                                                                                         11
     cantly higher than its market value of GBP     July 2006, yielded substantial profits and
     42.75 million. The residual term of the        also reduced (as planned) the share of UK
     tenancy agreements at date of sale was         properties in the fund’s portfolio from
     approx. six years. We were of the opinion      17.8 % to 11.5 %.
     that it would become increasingly difficult
     to obtain this market value as the tenancy     The sale of two office buildings in Sydney,
     agreements came closer to expiry.              Australia, already planned at the beginning
                                                    of last financial year, also went through
     In December 2005 we decided to accept a        during the second half of the year, the
     good offer for sale of the Pedro property      property at 16-32 Bridge Street in August,
     in Alcobendas, a suburb of Madrid, which       the one at 345 George Street in Septem-
     had been added to the fund’s assets in         ber. The sale of these buildings emptied
     2002. In view of the unfavourable condi-       the fund’s Australian portfolio and was in
     tions prevailing in this part of Madrid        accordance with the management’s policy
     (20 % vacancy rate, keen competition) its      of concentration of investment in Europe.
     market value of EUR 67.75 million is           It also eliminated the high cost of currency
     extremely high.                                hedging for these properties.

     Another real-estate asset disposed of in       The so-called Oranje portfolio consisting
     December was the retail property La Vie        of six Dutch properties was disposed of
     situated on the fringe of Utrecht’s inner      shortly before the end of the year under
     city area. Constructed in 1987 and acquired    review. The properties in this portfolio had
     for the fund in 1997, this property was        an overall vacancy rate of approx. 40 %,
     sold at the peak of its value curve and        and it was anticipated that high costs
     would, if it had been retained, have cost      would be incurred in the coming years
     the fund excessive sums for renovation.        from continuing vacancies and letting
     Other latent risks included short residual     expenses. The high vacancy rates and
     terms of existing tenancy agreements and       urgent need for revitalisation were reflect-
     increased competition from a new devel-        ed in the portfolio’s market value of EUR
     opment with approx. 30,000 m2 of retail        111.2 million and the selling price of EUR
     space in the central area. The selling price   109.3 million obtained for these proper-
     of EUR 89.5 million was significantly high-    ties. On the positive side, this difference is
     er than the current market value of EUR        more than compensated by the cost sav-
     78 million and also represented a profit of    ings. The deal reduced the share of Dutch
     EUR 20.1 million on cost of acquisition.       properties in the fund’s portfolio from
                                                    6.4 % to 4.3 %.
     A second British property, The Ark in the
     London suburb of Hammersmith acquired
     for the fund in 1997, was sold in March
     2006. This, together with three other deals
     in London negotiated between May and




12
Purchases and sales

Purchases                                  Seller                  Date              Purchase price                                                 Market value
                                                                                inc. ancillary costs                                                 (EUR mill.)
                                                                                        (EUR mill.)
None

Sales                                      Buyer                   Date               Selling price    Liabilities from     Acquisition costs       Market value
                                                                                less ancillary costs sale of real estate          (EUR mill.)         (EUR mill.)
                                                                                        (EUR mill.)          (EUR mill.)
London, 4 Coleman Street,                  Not disclosed           26.10.2005         Not disclosed                 1.3                 65.5                 62.9
Great Britain                                                                                             (GBP 0.9 mill.)     (GBP 44.5 mill.)     (GBP 42.7 mill.)
Utrecht, “La Vie“,                         Stichting Pensioen-     22.12.2005                  89.5                 1.0                 69.4                 78.0
Lange Viestraat 203-669,                   fonds Metaal
The Netherlands                            en Techniek
Alcobendas, “Cedro“,                       Not disclosed           23.12.2005         Not disclosed                  1.3                  69.1                 67.8
Calle Anabel Segura 14, Spain
London, “The Ark“,                         Not disclosed           28.03.2006         Not disclosed                 1.4                  64.9                 68.0
201 Talgarth Road, Great Britain                                                                          (GBP 0.9 mill.)      (GBP 44.7 mill.)     (GBP 46.8 mill.)
London EC2                                 Not disclosed           25.05.2006         Not disclosed                 4.3                 199.4                201.0
55, Bishopsgate, Great Britain                                                                            (GBP 2.9 mill.)     (GBP 136.5 mill.)    (GBP 137.6 mill.)
London EC1                                 Not disclosed           25.05.2006         Not disclosed                 5.2                 213.1                263.6
1 Bunhill Row, Great Britain                                                                              (GBP 3.5 mill.)     (GBP 145.8 mill.)    (GBP 180.4 mill.)
Sydney                                     Not disclosed           31.08.2006         Not disclosed                 2.2                 121.2                124.2
16-32 Bridge Street,                                                                                      (GBP 3.6 mill.)    (AUD 203.9 mill.)    (AUD 209.0 mill.)
“Exchange Centre“, Australia
London W1                                  Not disclosed           24.07.2006         Not disclosed                 1.4                 55.2                 64.9
10-14 Stratton Street,                                                                                    (GBP 1.0 mill.)     (GBP 37.7 mill.)     (GBP 44.3 mill.)
“Park House“, Great Britain
Sydney                                     Not disclosed           19.09.2006         Not disclosed                1.6                  92.2                 91.3
345 George Street,                                                                                       (AUD 2.7 mill.)     (AUD 155.0 mill.)    (AUD 153.5 mill.)
“The Landmark“, Australia
Hoofddorp, Wegalaan 50-72,                 VA No1 (Debitel) B.V.   25.09.2006                  11.6                  0.2                   8.5                 11.7
“Debitel“, The Netherlands
Amsterdam                                  VA No1 (Vogelstruys)    25.09.2006                  12.3                  0.3                  15.6                 13.8
Hullenbergweg 278-308,                     B.V.
“De Vogelstruys“,
The Netherlands
Capelle aan den Ijssel                     VA No1 (Crystal) B.V.   25.09.2006                  24.6                  0.5                  30.7                 26.3
Riviumboulevard 201-223, 202-216,
“Crystal Building“ Bauteil A + B,
The Netherlands
Schiphol-Rijk                              VA No1                  25.09.2006                  11.2                  0.3                  18.8                 13.5
Tupolevlaan 101-109, “Point of View“       (Point of View
(Logistics building), The Netherlands      Logistics) B.V.
Schiphol-Rijk                              VA No1                  25.09.2006                  22.5                  0.5                  30.4                 23.9
Tupolevlaan 2-24, “Point of View“          (Point of View
(Office building), The Netherlands         Office) B.V.
Amsterdam-Südost                           VA No1 (Apollo) B.V.    25.09.2006                  24.9                  0.4                  31.7                 22.1
Herikenbergweg 1-35,
Plaza Arena Block 3, “Apollo“, The Netherlands


Exchange rates applying on date of sale




                                                                                                                                                                   13
                                                                           Renovation and development projects                           Letting problems persist in some of the
 Geographic spread of real-estate
                                                                                                                                         fund's German properties, in Budapest
 portfolio
                                                                           Following its acquisition on 02 June 2000                     (Hungary) and in some of the Dutch prop-
 by %age of market value 1) 3)                                             the Général Foy building in Paris (8th.                       erties (Amsterdam), where our marketing
 Germany                                                        30.2
                                                                           Arrondissement) underwent a thorough                          efforts failed to bring any significant
 France                                                 17.4
                                                                           renovation. Standing at a first-class central                 improvement. Despite this, we can report
 Great Britain                                11.5
                                                                           location, its 8,200 m2 of net internal area                   a reduction of the vacant space in Belgium
 Austria                             7.0                                   are scheduled to come on to the letting                       from 24.9 % to 17 %, and we also suc-
 USA                             6.8                                       market towards the end of 2007.                               ceeded in negotiating extension of an
 Sweden                         5.3                                                                                                      existing tenancy agreement for 6,000 m2
 Spain                         4.5                                                                                                       of space until 2012 in the building at Hul-
 The Netherlands               4.3                                         Letting situation                                             lenbergweg 250 in Amsterdam.
 Belgium                       3.9
 Eire                          3.8                                         Intensive marketing activities have improved                  A new tenancy agreement running until
 Italy                    1.6                                              the letting status of real estate held by                     2016 for 2,000 m2 in the Westory building
 Japan                   1.3                                               Deka-ImmobilienEuropa (as calculated by                       in Washington D.C. has been negotiated
 Luxemburg               1.3                                               the BVI method) to 94.2 % as of 30 Sep-                       with the tenant Hill & Knowlton. Approx.
 Hungary                0.8                                                tember 2006 (last year: 91.9 %). This                         1,000 m2 of space in the building at
 Poland                0.4                                                 reduced the percentage of vacant space in                     Straße des 17. Juni 106-108 in Berlin have
                                                                           the portfolio from 8.1 % on 30 September                      been let to the law firm Rödl & Partner
                                                                           2005 to a current level of 5.8 %. Our let-                    GmbH in a tenancy agreement running
                                                                           ting offensive was particularly successful in                 until 2011.
 Portfolio Structure
                                                                           France and Belgium, both of which coun-
 by unit size
                                                                           tries have markets which can present                          Please refer to the tables on pages 20 to
 Market values in EUR million                   2) 3)
                                                                           problems.                                                     21 for details of letting ratios and expiring
                                                                                                                                         tenancy agreements, broken down by
                                                                                                                                         directly held real estate and real estate




                                                                                Geographic spread of real-estate portfolio 1)
 ‡ 0-10 (6 units)    0.7 % ‡ 75-100 (11 units)                  15.2%           Location                             Number             Market value EUR mill.     Market value %
 ‡ 10-25 (14 units) 4.4% ‡ 100-150 (8 units)                    15.7%           Total real estate 1):                  84                       6,119.4                 100.0
 ‡ 25-50 (23 units) 12.9% ‡ 150-200 (5 units)                   13.9%           of which: Germany                      32                       1,849.8                   30.2
 ‡ 50-75 (10 units) 10.0% ‡   >200 (6 units)                    27.1%                       Rhine-Main                  6                         535.7                    8.8
                                                                                            Rhine-Ruhr                  7                         427.9                    7.0
                                                                                            Other cities/regions        6                         309.1                    5.1
                                                                                            Berlin                      5                         185.1                    3.0
 Market age structure                                                                       Munich                      5                         245.4                    4.0
 of portfolio                                                                               Hamburg                     1                           7.8                    0.1
                                                                                            Stuttgart                   2                         138.9                    2.3
 Market values in EUR million 2)                                                of which: Europe (excluding Germany)   44                       3,772.3                   61.6
                                                                                            Great Britain               5                         703.4                   11.5
 3,500                                                                                      Eire                        1                         230.3                    3.8
             44.1%




                                                                                            France                      9                       1,063.9                   17.4
 3,000                                                                                      Italy                       1                          96.2                    1.6
                                                                                            Spain                       3                         272.4                    4.5
                       30.4%




 2,500
                                                                                            The Netherlands             5                         260.1                    4.3
 2,000                                                                                      Austria                     6                         425.7                    7.0
                                                                                            Sweden                      2                         323.8                    5.3
 1,500                                                                                      Belgium                     8                         238.6                    3.9
                                                        10.3%




                                                                                            Poland                      1                          27.1                    0.4
                                      9.3 %




                                                                 5.9%




 1,000                                                                                      Luxemburg                   1                          82.0                    1.3
                                                                                            Hungary                     2                          48.9                    0.8
     500
                                                                                of which: foreign outside Europe        8                         497.3                    8.1
         0                                                                                  USA                         6                         415.1                    6.8
             until 5



                       5-10


                                      10-15



                                                        15-20


                                                                 over 20




                                                                                            Japan                       2                          82.2                    1.3


 ‡ Market age structure in years
                                                                           1)
                                                                                including developments still under construction at capitalised cost
                                                                           2)
                                                                                not including developments still under construction
                                                                           3)
                                                                                Percentages are rounded off and may not always add up to 100%.

14
held through real-estate companies, and          10 years old or less and only around 6 % is
                                                                                                      Residual term
also by country and type of use. Letting         20 years old or more.
                                                                                                      of tenancy agreements
ratios of all properties held by the fund are
shown in the supplementary information           Long-term earning power is a guarantee               Share of total rental income (%)
on pages 54 to 58.                               of Deka-ImmobilienEuropa’s stability. The            35                                             31.7
                                                 long-term profitability of a real-estate fund
                                                                                                      30
                                                 depends heavily on the residual term of its                                                                24.8

Analysis of portfolio                            tenancy agreements, and we were able to              25

                                                 improve the overall picture in this respect          20
The majority of Deka-ImmobilienEuropa’s          during the year under review. Approx.                15
                                                                                                                                              10.0
real estate investments representing             75 % of Deka-ImmobilienEuropa’s tenancy                                         8.7    8.1
                                                                                                      10           6.0
                                                                                                             5.1          5.3
91.8 % of total market value are located         agreements run up to or beyond the year
                                                                                                       5                                                            0.5
in European markets, led by Germany              2010 (last year: 64 %) and 25 % of these,
(30.2 %), Great Britain (11.5 %) and France      the same figure as last year, up to the year          0     until 01/07- 01/08- 01/09- 01/10- 01/11- 01/12- 01/17 No
                                                                                                            12/06 12/07 12/08 12/09 12/10 12/11 12/16           or expiry
                                                                                                                                                              later date
(17.4 %). Other large international mar-         2017 or longer.
                                                                                                      ‡ Residual term
kets are under-represented, with USA
accounting for only 6.8 % and Japan for          Office use (including professional prac-
1.3 %. In accordance with our policy of          tices) and retail trading are the main types
                                                                                                      Analysis of types of use
giving preference to Europe when allocat-        of use, but we have succeeded in shifting
                                                                                                      by area 1) 2)
ing the fund’s resources we have already         some of the high concentration on offices
withdrawn from Australia and are also            to other forms of use. Office use (includ-
planning similar withdrawals from other          ing professional practices) now accounts
non-European markets over the medium             for approx. 68.6 % of rental income and a
term, as well as reducing the high percent-      70.9 % share of total space let (last year:
age of German real estate in the portfolio       72 % and 73 % respectively). Trade comes
in favour of a shift to other European           second with 19.7% of rental income and
markets.                                         14.8 % of space let (last year: 17.3 % and
                                                 13.7 % respectively). This increase in the
The breakdown of the real-estate portfolio       trade share reflects our close adherence to          ‡    Office                                              70.9 %
by unit size reveals relatively broad diversi-   the strategic objective of decreasing the            ‡    Hotel                                                5.0 %
                                                                                                      ‡    Trading                                             14.8 %
fication in terms of market values. Proper-      fund’s sensitivity to fluctuations in the            ‡    Warehousing                                          7.1 %
ties with a market value of up to EUR 50         office space market. The remainder is                ‡    Other                                                1.2 %
million account for approx. 18 % of the          warehouse/service space, hotel accommo-              ‡    Residential                                          0.3 %
                                                                                                      ‡    Leisure amenities                                    0.5 %
total portfolio, between EUR 50 and EUR          dation and miscellaneous uses such as
100 million for approx. 25 % and over EUR        parking facilities.
100 million for 56.7 %, of which units
                                                                                                      Analysis of types of use by net
with a market value of over EUR 200 mil-
                                                                                                      annual rent receivable 1) 2)
lion have a relatively high share of 27.1 %.     Currency and loan portfolio
This latter figure is regarded as too high in    management
strategic terms. Consequently, it is planned
to reduce the proportion of very large           German regulations stipulate that not
units held by the fund in favour of smaller      more than 30 % of the fund’s assets may
ones which are more readily saleable at          be exposed to a currency risk. Investments
short notice. In view of the possibility that    denominated in foreign currencies existed
the fund’s financial resources could tend        during the year under review in Great
to become more volatile in the future, an        Britain, Australia, Japan, the USA, Swe-
increase in the proportion of smaller, more      den, Hungary and Poland. Following dis-              ‡    Office                                              68.6 %
easily saleable units will help to make the      posal of the Australian real estate, cash            ‡    Hotel                                                4.5 %
fund more flexible in its ability to react to    balances held in Australian dollars will be          ‡    Trading                                             19.7 %
                                                                                                      ‡    Warehousing                                          2.6 %
new situations.                                  used to settle outstanding tax liabilities.          ‡    Other                                                1.0 %
                                                 The management company pursues a low-                ‡    Residential                                          0.3 %
Analysis of the market age structure of          risk foreign currency strategy for Deka-             ‡    Parking space                                        3.1 %
                                                                                                      ‡    Leisure amenities                                    0.2 %
Deka-ImmobilienEuropa’s real-estate port-        ImmobilienEuropa. It is however permissi-
folio shows that 44.1 % consists of new          ble to make exceptions from the policy of       1)
                                                                                                      not including projects under construction
buildings constructed within the last five       virtually complete hedging of currency          2)
                                                                                                      Percentages are rounded off and may not always
years. Approx. 74 % of the real estate is        risks in the case of individual currencies           add up to 100 %.


                                                                                                                                                                          15
                                                                                                                     where the risk may be only partially hedged     The integrated fixed interest rate policy
 Terms negotiated for fixed-interest loans
                                                                                                                     or even not at all, because specific market     now being applied both to liquid resources
 %age rate and Euro equivalent for each currency                                                                     indicators show low anticipated volatility      and Euro financing transactions means
 1,200                                                                                                               (or probable appreciation) of that currency     that variations in loan charges are always


                                                                                                            100.0%
                                                                                                                     against the Euro and hedging would con-         balanced against corresponding variations
                                          93.41%




 1,000                                                                                                               sequently not be justifiable on cost grounds.   in income, thus creating a virtually no-risk
                                                                                 100.0%




                                                                                                                     The real estate held by the fund in Poland      position in this area.
           88.36%




     800
                                                                                                                     and Hungary is let on Euro-linked tenancy
     600                                                                                                             agreements and its market value is calcu-       After due allowance for taxation nearly all
                                                                                                   100.0%
                    100.0%




                                                                                                                     lated accordingly.                              loan agreements exerted a positive lever-
                                                                                               100.0%




     400
                                 100.0%




                                                                                                                                                                     age effect.
                                                       11.64%




                                                                        6.59%
                             100.0%




                                                                                          100.0%




     200                                                                                                             As of 30 September 2006, a total of 1.9 %
                                                                                                                     of the fund’s assets was exposed to cur-
      0       less than                                         5-10                       Total
                1 year                                          years
                                                                                                                     rency risks.                                    Analysis of percentage yields

 ‡ EUR                                             ‡ GBP                        ‡ JPY
                                                                                                                     Currency futures contracts with a term of       Deka-ImmobilienEuropa’s overall net per-
 ‡ USD                                             ‡ Total
                                                                                                                     less than one year were used during the         centage yield (calculated by the BVI
                                                                                                                     year under review to hedge foreign cur-         method) for financial year 2005/2006 was
                                                                                                                     rency positions. The hedging costs and          4.13 % (last year: 2.6 %). The yield from
 Target structure of types of use                                                                                    profits were not constant because they          interest income on liquid funds was
                                                                                                                     varied according to the interest rates          approx. 2.2 %, from valuation adjustments
                                                                                                                     applying at the time. Short-term hedging        approx. 1.4 % and from net rental income
                                                                                                                     was undertaken in accordance with the           approx. 5.5 %.
                                                                                                                     integrated fixed interest rate strategy used
                                                                                                                     for investments, currency and financing         The gross rental yield during the year
                                                                                                                     and helped to avoid the valuation risk          under review was 6.5 %. The net rental
                                                                                                                     inherent in long-term hedging contracts         yield of around 5.5 % is more or less with-
                                                                                                                     (mark-to-market), whilst at the same time       in the same bracket as last year. Increase
                                                                                                                     maintaining the necessary degree of flexi-      of this figure to around 6% is one of our
 ‡   Office                                                                                   60.0%
 ‡   Logistics                                                                                15.0%
                                                                                                                     bility for real-estate investments outside      medium-term targets. This appears emi-
 ‡   Retail                                                                                   15.0%                  the Euro currency area.                         nently possible in view of the fact that the
 ‡   Mixed use                                                                                10.0%                                                                  current level was depressed by Dutch and
                                                                                                                     The loan portfolio at 30 September 2006         Belgian properties with high vacancy rates
                                                                                                                     totalled approx. EUR 1,160 million (16.90%      which had adversely affected overall per-
                                                                                                                     of the fund’s assets). Most of the interest     formance. These have now either been
                                                                                                                     rates are fixed for terms of less than one      disposed of or are being offered for sale.
                                                                                                                     year (on average 271 days).                     The net value adjustment yield of 1.4 %
                                                                                                                                                                     reflects mainly the high profits realised on
                                                                                                                                                                     sale of real estate. But it also includes neg-




 Currency risks

                                                                                             Open positions at                            Net %age of fund volume             Net percentage of total
                                                                                          closing date (EUR ’000)                             per currency area                    fund volume
 AUD                                                                                               2,436                                         100.0 %                                       0.0 %
 GBP                                                                                               2,311                                            0.6 %                                      0.0 %
 HUF                                                                                               2,947                                         100.0 %                                       0.0 %
 JPY                                                                                                 357                                            0.9 %                                      0.0 %
 SEK                                                                                            115,466                                           33.7 %                                       1.7 %
 USD                                                                                               3,939                                           -1.6 %                                      0.1 %
 PLN                                                                                               1,376                                         100.0 %                                       0.0 %



16
ative items from write-downs in various                     Tax accrual for profits on disposals
                                                                                                                 Investor structure*
countries – including Germany (- 5.5 %).
                                                            An amount of EUR 42.9 million was trans-             Size of unit holdings as percentage of fund volume
After due allowance for taxes on profits                    ferred during the year under review to tax           60




                                                                                                                                            41.53 %
(-0.5 %) and tax deferrals (-0.7 %) the yield               accruals for capital gains tax on anticipat-




                                                                                                                            53.46 %
on real estate was 5.8 % before deduction                   ed profits from sale of directly held foreign        50
of loan interest. After deduction of loan                   properties. This represents an increase in           40
interest charges the net yield on real estate               the level of the accrual from 25 % (30
– calculated on real- estate assets financed                September 2005) to 50% (30 September                 30
by the fund itself – was around 6 %. The                    2006). The balance shown in the accounts
                                                                                                                 20




                                                                                                                                                          3.92 %
foreign currency positions relating to for-                 is the amount remaining after transfers to




                                                                                                                                                                         1.05 %


                                                                                                                                                                                       0.03 %
eign real estate held by the fund are cov-                  the accrual and withdrawals following sale           10
ered more or less completely by currency                    of the relevant properties. The amounts
                                                                                                                  0   < 10 t             < 50 t       < 100 t         < 1mill.      > = 1 mill.
hedging contracts in order to minimise the                  transferred to the accrual were calculated
                                                                                                                 * Analysis relates to 64.9%
currency risk to which the fund is exposed.                 separately for each foreign property by
                                                                                                                   of fund assets
The cost of these hedging contracts totalled                computing the rate of capital gains tax
-0.4 % of rental income, thereby reducing                   payable in the relevant country on 50% of
the yield on real estate to 5.7 %.                          the anticipated profits from sale. Similar
                                                                                                                  Top 10 tenants
                                                            tax accruals for anticipated profits from
The yield of 2.2 % on liquid funds reflects                 sale of foreign real estate carried as assets        Goldman Sachs International                                       5.2 0 %
the defensive strategy pursued during the                   under construction are started as from the           mg vermögensverwaltungs GmbH                                      4.05 %
                                                                                                                 Nordea Bank                                                       3.94 %
year under review on investment of liquid                   date of their transfer to the fund’s real-           BNP Paribas Securities Services                                   3.56 %
resources in low-risk instruments with high                 estate portfolio. Tax accruals are created           Credit Lyonnais                                                   2.94 %
credit ratings and relatively short terms.                  for all other directly held foreign real             DWS Investment GmbH                                               2.64 %
                                                                                                                 Belgacom Mobile s.a.                                              2.19 %
Having regard to the low level of risk to                   estate as from the date of its inclusion in          STARMAN HOTELES ESPANA S.L.                                       1.86 %
which these investments were exposed,                       the fund’s portfolio.                                H&M – Hennes & Mauritz GmbH                                       1.83 %
the fund’s management is satisfied with                                                                          ITT Corporation                                                   1.78%
                                                                                                                 Other tenants (net target rental)                                70.01 %
the yield obtained.
                                                                                                                 Total rental income                                              100.0 %

Inclusion of the yield on liquid funds
increases the yield (before fund costs) to
4.6 %. Deduction of fund costs reduces
this figure to 4.1 %. Please refer to the
tables on pages 23 to 26 for details of
individual yields broken down by directly
held real estate and real estate held
through real-estate companies, and also
by country.




 Loan portfolio

 Currency                     Loan volume       as %age         Loan volume      as %age           Total loan   as %age               Mean interest                      Mean fixed
                             (directly held      of fund         (real-estate     of fund            volume      of fund                       rate                  interest period
                               real estate)        assets        companies)         assets                EUR      assets                                          (residual term to
                                       EUR                               EUR                                                                                         maturity (days)
 EUR (Germany)                         0.00       0.00 %       76,400,000.00        1.11 %      76,400,000.00    1.11 %                           6.0 %                        3,504
 EUR (Other countries) 1)   463,822,399.68        6.76 %      115,920,504.71        1.69 %     579,742,904.40    8.45 %                           4.0 %                           41
 EUR (Total)                463,822,399.68        6.76 %      192,320,504.71        2.80 %     656,142,904.40    9.56 %                           4.2 %                          444
 GBP                        293,384,835.39        4.27 %                 0.00       0.00 %     293,384,835.39    4.27 %                           5.5 %                            6
 JPY                                   0.00       0.00 %       44,855,588.74        0.65 %      44,855,588.74    0.65 %                           2.5 %                          259
 USD                        103,783,561.95        1.51 %       61,559,831.42        0.90 %     165,343,393.37    2.41 %                           5.9 %                           61
 Total                      860,990,797.02       12.54 %      298,735,924.87        4.35 %   1,159,726,721.89   16.90 %                          4.72 %                          271

 1)
      Loan volume (real-estate companies) includes loan of EUR 4,345,980.99 in Hungary.




                                                                                                                                                                                                17
     Outlook                                           continue, with net absorption remaining
                                                       positive, but at a lower rate. This will grad-
     Looking at Europe, we expect the two              ually reduce vacancy rates. Growth in the
     largest markets, London and Paris, and            office-based labour force will be strongest
     also locations in Spain and the Scandina-         in Washington D.C., underlining the US
     vian countries to report further falls in         capital’s role as a ‘centre of stability’. We
     vacancy rates and growth in lettings. The         expect to see the strongest growth in peak
     prospects in Amsterdam and Brussels look          rental levels in New York and San Francis-
     less attractive, firstly, because of the exist-   co, although the latter of these two mar-
     ing high vacancy rates, secondly, because         kets will still lag well behind the peak
     of the prevailing high level of new building      reached in 2001.
     activity, especially at central locations. The
     sector is still waiting for signs of a revival    Although markets in Asia offer good
     in letting activity from Prague, Budapest         opportunities for an upswing in letting
     and Warsaw, but these three ‘emerging             activity, they could tend to weaken during
     markets’ have adequate amounts of excel-          the course of 2007. The supply of first-class
     lent Category A space already on offer,           space in large markets like Tokyo, Singa-
     not to mention a well-filled project              pore and Hong Kong remains limited.
     pipeline.
                                                       Germany’s office space markets are start-
     The high level of liquidity still available,      ing to recover. Although the overall down-
     especially to institutional and other profes-     ward trend in vacancy rates remains slug-
     sional investors, is helping to keep Euro-        gish, there are wide differences for individ-
     pean real-estate prices high, especially          ual types of space. The availability of high-
     those for fully let properties offering a         quality, integrated space at Category A
     steady income. In countries like Great            locations in the five major cities has already
     Britain, where yields on real estate are          gone down sharply. A trend of this kind
     tending to edge closer and closer to bond         does not become visible immediately
     yields, we anticipate a slackening in investor    because official statistics on vacancy rates
     demand over the medium term.                      make no distinction between categories of
                                                       space. The relatively low level of new
     In the USA we expect the positive trend in        building activity will help to accelerate the
     office space markets at central locations to      decline in vacancy rates.




      Geographical spread of targeted allocation of fund resources




                                                                      Europe
                                                                      (outside Euro area)    30 %
                                                                      e.g.
                                                                      Sweden
                                                                      Poland

                                                                      Euroland               70 %
                                                                      e.g.
                                                                      France
                                                                      Spain
                                                                      Italy
                                                                      Portugal
                                                                      Austria




18
We expect to see a two-pronged trend in
the retail space market. Trends in rental
levels at heavily frequented locations will
probably remain stable. Despite inner-city
shopping centre developments, availability
of space at 1A locations will remain limit-
ed, even in medium-sized cities. In con-
trast, the number of specialist supermar-
kets at suburban and fringe locations is
increasing and this is tending to depress
rentals and increase vacancy rates of tradi-
tional types of retail space and at older
shopping centres.

Decisions on any real estate disposals
planned or considered during the current
financial year will be taken on the basis
of, firstly, the selling price options offered
by the market and, secondly, the overall
strategy for allocation of the fund’s finan-
cial resources. It is planned to further reduce
the share occupied by the non-European
real estate in the present portfolio and
also to make a similar, moderate reduction
in the proportion of German real estate.

On the basis of information currently avail-
able, we expect Deka-ImmobilienEuropa’s
performance in financial year 2006/2007
to at least equal that now reported for the
year under review. Should we, despite the
problems currently presented by overheat-
ed markets, succeed in negotiating any new
investments at rational prices, this should
help to accelerate the upward trend.




                                                  19
Analysis of letting data




 Sources of rental income, vacancy rates, structure of tenancy agreements 3)

 Country                                                            Belgium   Germany    France    Great      Eire               Italy
 Direct investments                                                                               Britain
 Number of properties                                                     7        31         3         5       1                   1
 Valuation of properties (EUR mill.)                                  121.5    1,688.4    627.1    703.4    230.3                96.2
 Annual rental income broken down by type of use 5)
 Office space                                                        87.2%      67.3%    90.3%    84.4%      1.7%              93.5%
 Retail/catering space                                                0.5%      19.2%     2.9%    13.6%     90.2%               2.8%
 Hotel space                                                          0.0%       5.5%     0.0%     0.0%      0.0%               0.0%
 Industrial space (warehouses etc.)                                   1.7%       3.6%     3.5%     0.0%      1.9%               2.4%
 Residential space                                                    0.2%       0.1%     0.1%     0.0%      0.0%               0.0%
 Leisure amenities                                                    0.0%       0.0%     0.0%     0.0%      5.6%               0.0%
 Vehicle parking space                                               10.2%       4.0%     2.6%     0.0%      0.0%               1.3%
 Other space                                                          0.2%       0.3%     0.6%     1.9%      0.5%               0.0%
 Vacancy rates (at closing date)
 Office space                                                        26.4%      15.9%     0.6%      0.0%     0.0%               0.0%
 Retail/catering space                                                0.0%       2.7%     0.0%      0.0%     3.8%               0.0%
 Hotels                                                               0.0%       0.0%     0.0%      0.0%     0.0%               0.0%
 Industrial space (warehouses etc.)                                  45.8%      10.8%    14.4%      0.0%     0.0%               0.0%
 Residential space                                                    0.0%      15.6%     0.0%      0.0%     0.0%               0.0%
 Leisure amenities                                                    0.0%       0.0%     0.0%      0.0%     0.0%               0.0%
 Vehicle parking space                                               33.2%      17.1%     0.5%      0.0%     0.0%               0.0%
 Other space                                                         89.1%      30.7%     7.2%      0.0%     0.0%               0.0%
 Letting ratio                                                       72.6%      87.7%    98.9%    100.0%    96.5%             100.0%
 Residual time to expiry of tenancy agreement 4)
 No expiry date                                                       0.2%       0.4%     0.0%     0.0%      0.0%               0.0%
 2006                                                                 4.0%       0.1%     0.0%     6.2%      0.9%               0.0%
 2007                                                                12.3%       4.6%     8.5%     0.7%      0.9%               0.0%
 2008                                                                14.4%       3.9%     0.0%     0.6%      0.0%               0.0%
 2009                                                                 2.5%       7.2%     3.0%     9.4%      0.6%               0.0%
 2010                                                                 0.0%       5.5%    44.9%     0.4%      1.2%               0.0%
 2011                                                                21.8%       4.6%     0.0%     2.1%      0.0%               0.0%
 2012                                                                 6.6%      16.3%    29.5%     0.0%      0.0%             100.0%
 2013                                                                 0.0%      12.0%     0.0%     0.0%      0.0%               0.0%
 2014                                                                 0.6%      14.6%     1.9%     5.7%      0.0%               0.0%
 2015                                                                19.2%      11.0%     0.0%     0.0%      0.2%               0.0%
 2016                                                                 0.0%       1.0%     0.0%     1.2%      0.0%               0.0%
 2017+                                                               18.4%      18.7%    12.1%    73.7%     96.1%               0.0%
 Country                                         The Netherlands               Austria   Poland    Spain     USA               Total 1)
 Direct investments                                                                                                  Direct investment
 Number of properties                                          5                    6         1        3        5                  68
 Valuation of properties (EUR mill.)                       260.1                425.7      27.1    272.4    257.7             4.709.8
 Annual rental income broken down by type of use 5)


 Office space                                             96.2%                 39.6%    89.0%    24.7%     78.2%              69.1%
 Retail/catering space                                     0.0%                 31.3%     0.0%    30.6%     19.6%              19.0%
 Hotel space                                               0.0%                 22.5%     0.0%    41.9%      0.0%               6.0%
 Industrial space (warehouses etc.)                        0.0%                  2.1%     5.6%     0.0%      0.5%               2.1%
 Residential space                                         0.0%                  0.0%     0.0%     0.0%      0.0%               0.0%
 Leisure amenities                                         0.0%                  0.0%     0.0%     0.0%      0.0%               0.2%
 Vehicle parking space                                     3.7%                  3.9%     5.4%     2.9%      0.0%               2.8%
 Other space                                               0.1%                  0.6%     0.0%     0.0%      1.7%               0.7%
 Vacancy rates (at closing date)
 Office space                                             11.5%                  0.1%      0.0%     0.0%     9.2%               8.4%
 Retail/catering space                                     0.0%                  6.8%      0.0%     0.0%     0.4%               2.7%
 Hotels                                                    0.0%                  0.0%      0.0%     0.0%     0.0%               0.0%
 Industrial space (warehouses etc.)                        0.0%                  1.9%      0.0%     0.0%    19.2%              10.7%
 Residential space                                         0.0%                  0.0%      0.0%     0.0%     0.0%              10.5%
 Leisure amenities                                         0.0%                  0.0%      0.0%     0.0%     0.0%               0.0%
 Vehicle parking space                                     0.0%                  0.0%      0.0%     0.0%     0.0%              11.8%
 Other space                                               0.0%                  0.0%      0.0%     0.0%     1.3%               7.0%
 Letting ratio                                            88.9%                 97.8%    100.0%   100.0%    92.7%              93.1%
 Residual time to expiry of tenancy agreement 4)
 No expiry date                                            0.0%                  1.9%      0.0%    0.0%      0.1%               0.3%
 2006                                                      0.0%                  6.1%      0.0%    2.0%      0.1%               1.8%
 2007                                                      0.0%                  8.0%      0.0%    8.4%      3.1%               4.5%
 2008                                                     12.4%                  2.5%      0.0%   19.7%      8.1%               4.5%
 2009                                                      0.0%                  2.8%      0.0%    5.2%     12.9%               5.9%
 2010                                                      0.3%                 10.6%      0.0%    0.8%     11.4%               9.7%
 2011                                                     44.0%                 20.1%      0.0%    0.9%     10.7%               7.7%
 2012                                                     12.8%                 12.9%      0.0%    0.0%      1.6%              13.5%
 2013                                                     15.9%                  1.0%      0.0%    0.0%      5.9%               5.5%
 2014                                                      0.0%                  0.0%    100.0%    8.4%     20.1%               8.8%
 2015                                                     14.4%                  0.2%      0.0%   11.1%      2.9%               5.9%
 2016                                                      0.0%                  0.0%      0.0%    0.0%      3.4%               0.8%
 2017+                                                     0.0%                 33.8%      0.0%   43.7%     19.7%              31.0%
 1)
      inc. land held through a real-estate company in Belgium
 2)
      not inc. land held through a real-estate company in Belgium
 3)
      not inc. developments under construction


20
Sources of rental income, vacancy rates, structure of tenancy agreements                     3)



Country                                                              Belgium       Germany   France      Luxemburg
Investments through real-estate companies
Number of properties                                                        1            1        5              1
Valuation of properties (EUR mill.)                                     117.1        161.5    381.8             82
Annual rental income broken down by type of use 5)
Office space                                                           90.5%          3.6%   47.6%           84.6%
Retail/catering space                                                   0.0%         81.8%   38.8%            0.0%
Hotel space                                                             0.0%          0.0%    0.0%            0.0%
Industrial space (warehouses etc.)                                      2.7%          7.9%    8.7%            6.6%
Residential space                                                       0.0%          0.0%    0.0%            0.0%
Leisure amenities                                                       0.0%          0.0%    0.0%            0.0%
Vehicle parking space                                                   6.8%          2.9%    4.1%            8.7%
Other space                                                             0.0%          3.8%    0.8%            0.0%
Vacancy rates (at closing date)
Office space                                                            0.0%         11.7%    0.0%            0.0%
Retail/catering space                                                   0.0%          0.0%    0.0%            0.0%
Hotel space                                                             0.0%          0.0%    0.0%            0.0%
Industrial space (warehouses etc.)                                      0.0%          2.8%    0.0%            0.0%
Residential space                                                       0.0%          0.0%    0.0%            0.0%
Leisure amenities                                                       0.0%          0.0%    0.0%            0.0%
Vehicle parking space                                                   0.0%          1.0%    3.7%            0.0%
Other space                                                             0.0%          0.0%    0.0%            0.0%
Letting ratio                                                         100.0%         99.4%   99.8%          100.0%
Residual time to expiry of tenancy agreement 4)
No expiry date                                                          0.0%          0.0%    0.1%            0.0%
2006                                                                    0.0%          0.0%   18.2%            0.0%
2007                                                                    0.0%          0.1%   10.6%            0.0%
2008                                                                    0.0%          0.0%   23.9%            0.0%
2009                                                                  100.0%          0.0%   10.6%            0.0%
2010                                                                    0.0%          8.9%    0.0%            0.0%
2011                                                                    0.0%          0.3%    5.9%            0.0%
2012                                                                    0.0%          0.0%   30.6%            0.0%
2013                                                                    0.0%          0.0%    0.0%            0.0%
2014                                                                    0.0%          3.5%    0.0%            0.0%
2015                                                                    0.0%         72.0%    0.0%            0.0%
2016                                                                    0.0%         12.9%    0.0%            0.0%
2017+                                                                   0.0%          2.4%    0.0%          100.0%
Country                                                              Sweden        Hungary   Japan            USA            Total 2)     Grand total
Investments through real-estate companies                                                                        through real-estate companies
Number of properties                                                        2            2           2           1              15                 83
Valuation of properties (EUR mill.)                                     323.8         48.9        82.2       157.4        1,354.60           6,064.40
Annual rental income broken down by type of use 5)
Office space                                                           76.6%         88.4%   79.5%           94.0%           67.1%               68.6%
Retail/catering space                                                  11.9%          0.1%   18.6%            0.0%           22.0%               19.7%
Hotel space                                                             0.0%          0.0%    0.0%            0.0%            0.0%                4.5%
Industrial space (warehouses etc.)                                      0.7%          0.5%    0.0%            0.0%            3.8%                2.6%
Residential space                                                       5.2%          0.0%    0.0%            0.0%            1.1%                0.3%
Leisure amenities                                                       0.0%          0.0%    0.0%            0.0%            0.0%                0.2%
Vehicle parking space                                                   2.5%          8.7%    1.8%            4.0%            4.2%                3.1%
Other space                                                             3.0%          2.3%    0.1%            2.0%            1.8%                1.0%
Vacancy rates (at closing date)
Office space                                                            0.0%         26.3%    0.0%            6.6%            3.1%                7.2%
Retail/catering space                                                   0.0%          0.0%   32.0%            0.0%            1.0%                2.2%
Hotel space                                                             0.0%          0.0%    0.0%            0.0%            0.0%                0.0%
Industrial space (warehouses etc.)                                      0.0%         11.8%    0.0%            0.0%            0.7%                7.0%
Residential space                                                       0.0%          0.0%    0.0%            0.0%            0.0%                1.3%
Leisure amenities                                                       0.0%          0.0%    0.0%            0.0%            0.0%                0.0%
Vehicle parking space                                                   9.6%         25.2%    0.0%            0.0%            4.4%                9.3%
Other space                                                             0.0%          0.0%   58.8%            0.0%            0.1%                4.0%
Letting ratio                                                          99.8%         74.7%   94.2%           93.8%           97.6%               94.2%
Residual time to expiry of tenancy agreement 4)
No expiry date                                                          1.4%          0.2%    0.1%            2.8%            0.9%                0.5%
2006                                                                    0.1%          0.2%   40.5%           42.2%           14.5%                5.1%
2007                                                                    3.1%         14.0%   51.7%           20.6%           10.0%                6.0%
2008                                                                    0.4%          4.0%    7.7%            4.6%            7.5%                5.3%
2009                                                                   10.4%         79.6%    0.0%            4.2%           16.5%                8.7%
2010                                                                    6.2%          1.9%    0.0%            5.1%            3.4%                8.1%
2011                                                                   68.7%          0.0%    0.0%            0.1%           16.6%               10.0%
2012                                                                    8.2%          0.0%    0.0%            2.3%           10.0%               12.6%
2013                                                                    1.6%          0.0%    0.0%            7.6%            1.8%                4.5%
2014                                                                    0.0%          0.0%    0.0%            4.3%            1.2%                6.8%
2015                                                                    0.0%          0.0%    0.0%            6.0%            9.3%                6.8%
2016                                                                    0.0%          0.0%    0.0%            0.0%            1.5%                1.0%
2017+                                                                   0.0%          0.0%    0.0%            0.3%            6.8%               24.8%
4)
     inc. value of rent-free periods (incentives) at closing date
5)
     inc. valued vacancy rate and rent-free periods (incentives) at closing date



                                                                                                                                                         21
                                                                          Analysis of yields and value adjustments




Yields and value adjustments

Direct investments                             Belgium 3)         Germany               France             Great                 Eire              Italy
Percentage yields                                                                                         Britain

I. Real estate
Gross yield                                         4.5%               5.5%              5.3%               6.8%               6.3%               5.5%
Operating expenses                                 -2.7%              -0.6%             -0.7%              -0.4%              -0.3%              -0.1%
Yield after operating exp.                          1.8%               4.9%              4.6%               6.4%               5.9%               5.4%
Value adjustments                                  -7.4%              -5.4%              4.3%              13.7%               4.8%               0.0%
Foreign taxation on profits                        -0.3%               0.0%              0.0%              -0.9%              -0.1%              -0.4%
Foreign tax deferrals                              -0.2%               0.0%             -4.2%               0.0%              -2.3%              -1.0%
Yield before interest charges                      -6.0%              -0.5%              4.6%              20.0%               8.3%               4.0%
Yield after interest charges                       -9.0%              -0.5%              5.0%              29.9%               8.3%               6.3%
Currency adjustment                                 0.0%               0.0%              0.0%              -2.1%               0.0%               0.0%
Final net yield (in fund’s currency)               -9.0%              -0.5%              5.0%              27.8%               8.3%               6.3%

II. Liquid resources

III. Overall yield
Before fund management expenses
After fund management expenses (calculated by BVI method)

Analysis of invested capital
Weighted averages (EUR mill.)

Real estate                                        120.3            1,723.4              590.5            1,011.6              209.0              111.0
Loan volume                                         27.6                0.0              273.5              442.9                0.0               88.6
Liquidity
Fund assets

Value adjustments 2)
as at closing date (EUR mill.)

Expert valuations (market values)                  121.5            1,688.4              627.1              703.4              230.3               96.2
Rentals used for expert valuation                    8.2              101.7               34.5               41.7               14.3                6.2

Total value adjustment                               -9.1              -93.8               0.2              138.1                5.1                -1.1
Total value adjustment as per expert opinion         -8.8              -93.9              25.1               27.8               10.0                 0.0
Other value adjustments                              -0.2                0.1             -24.9              110.3               -4.8                -1.1
Positive value adjustments as per expert opinion      0.1                4.0              25.1               27.8               10.0                 0.0
Other positive value adjustments                      0.0                0.2               0.0              110.3                0.0                 0.0
 Positive value adjustments from amendment of
 acquisition cost of existing properties              0.0                0.2               0.0                0.3                 0.0                0.0
 Profit on initial valuation                          0.0                0.0               0.0                0.0                 0.0                0.0
 Profit on projects                                   0.0                0.0               0.0                0.0                 0.0                0.0
 Profit on sale 1)                                    0.0                0.0               0.0              110.0                 0.0                0.0
Negative value adjustments as per expert opinion     -9.0              -97.9               0.0                0.0                 0.0                0.0
Other negative value adjustments                     -0.2               -0.1             -24.9                0.0                -4.8               -1.1
 Negative value adjustments from amendment of
 acquisition cost                                     0.0               -0.1               0.0                0.0                 0.0                0.0
 Loss against initial valuation                       0.0                0.0               0.0                0.0                 0.0                0.0
 Loss on projects                                     0.0                0.0               0.0                0.0                 0.0                0.0
 Loss on sale 1)                                      0.0                0.0               0.0                0.0                 0.0                0.0
 Foreign tax deferrals                               -0.2                0.0             -24.9                0.0                -4.8               -1.1


1)
     Profit or loss on sale are spread across several items in the schedule ‘Movements in fund assets’ and are shown here inc. adjustments in expert valuation of market
     value for the properties sold during the course of the year under review.
2)
     ‘Other negative value adjustments’ inc. foreign tax deferrals
3)
     In order to present a true picture of the yield, the value of the land held through a real-estate company in Belgium has been added to the corresponding directly
     owned properties.




                                                                                                                                                                           23
Analysis of yields and value adjustments




 Yields and value adjustments

 Direct investments                     The Netherlands              Austria            Poland             Spain 4)       Australia 4)              USA                 Total
 Percentage yields                                                                                                                                          Direct investments

 I. Real estate
 Gross yield                                         6.8%               5.9%              6.4%               6.8%               7.0%               9.6%                 6.2%
 Operating expenses                                  0.1%              -0.3%              0.0%               0.6%              -3.4%              -4.1%                -0.7%
 Yield after operating exp.                          6.9%               5.6%              6.4%               7.4%               3.6%               5.5%                 5.4%
 Value adjustments                                  -4.7%               1.3%              1.4%               0.5%              -0.2%               3.2%                 1.3%
 Foreign taxation on profits                         0.0%               0.0%             -1.0%              -1.6%              -0.2%              -1.3%                -0.4%
 Foreign tax deferrals                              -0.9%               0.0%             -0.7%              -1.7%               1.4%              -3.0%                -0.8%
 Yield before interest charges                       2.2%               6.9%              6.1%               4.6%               4.6%               4.3%                 5.5%
 Yield after interest charges (in local currency)    1.3%               6.9%              6.1%               5.2%               4.1%               3.4%                 5.8%
 Currency adjustment                                 0.0%               0.0%              0.1%               0.0%              -3.9%              -2.2%                -0.5%
 Final net yield (in fund’s currency)                1.3%               6.9%              6.3%               5.2%               0.2%               1.2%                 5.3%

 II. Liquid resources

 III. Overall yield
 Before fund management expenses
 After fund management expenses (calculated by BVI method)

 Analysis of invested capital
 Weighted averages (EUR mill.)

 Real estate                                        375.6              416.9               28.7              267.4              192.1              239.8             5,287.7
 Loan volume                                          0.0                0.0                0.0               81.2               54.7              104.2             1,072.7
 Liquidity
 Fund assets

 Value adjustments 2)
 (as at closing date (EUR mill.)

 Expert valuations (market values)                  260.1              425.7               27.1              272.4                0.0              257.7             4,709.8
 Rentals used for expert valuation                   16.5               24.5                2.0               16.1                0.0               26.9               292.5

 Total value adjustment                           -20.9                   5.4                0.2              -3.1                2.4                 0.4               23.8
 Total value adjustment as per expert opinion       8.8                   5.3                0.4               9.7                0.0                 7.6               -8.0
 Other value adjustments                          -29.7                   0.0               -0.2             -12.8                2.4                -7.2               31.8
 Positive value adjustments as per expert opinion 13.1                    5.8                0.4               9.7                0.0                 7.6              103.5
 Other positive value adjustments                   4.2                   0.0                0.0               0.0                0.0                 0.0              114.8
  Positive value adjustments from amendment of
  acquisition cost of existing properties           0.0                   0.0                0.0                                                      0.0                0.6
  Profit on initial valuation                       0.0                   0.0                0.0                                                      0.0                0.0
  Profit on projects                                0.0                   0.0                0.0                                                      0.0                0.0
  Profit on sale 1)                                 4.2                   0.0                0.0                                                      0.0              114.2
 Negative value adjustments as per expert opinion -4.3                   -0.5                0.0               0.0                0.0                 0.0             -111.6
 Other negative value adjustments                 -33.9                   0.0               -0.2             -12.8                2.4                -7.2              -82.9
  Negative value adjustments from amendment of
  acquisition cost                                  0.0                   0.0                0.0                                                      0.0                -6.4
  Loss on initial valuation                         0.0                   0.0                0.0                                                      0.0                 0.0
  Loss on projects                                  0.0                   0.0                0.0                                                      0.0                 0.0
  Loss on sale  1)
                                                  -30.6                   0.0                0.0                                                      0.0               -33.1
  Foreign tax deferrals                            -3.3                   0.0               -0.2               -4.4               2.7                -7.2               -43.5


 1)
      Profit or loss on sale are spread across several items in the schedule ‘Movements in fund assets’ and are shown here inc. adjustments in expert valuation of market
      value for the properties sold during the course of the year under review.
 2)
      ‘Other negative value adjustments’ inc. foreign tax deferrals
 3)
      In order to present a true picture of the yield, the land held through a real-estate company in Belgium has been added to the corresponding
       directly owned properties.
 4)
      It is impossible to give further details of ‘Other positive value adjustments’ because of contractual undertakings not to disclose selling price.




24
                                                                         Analysis of yields and value adjustments




Yields and value adjustments

Investments through real-estate companies                         Belgium           Germany               France       Luxemburg              Sweden
Percentage yields

I. Real estate
Gross yield                                                           9.9%               8.2%               6.6%              7.9%               6.4%
Operating expenses                                                   -0.7%              -1.5%              -0.9%             -0.2%              -0.4%
Yield after operating exp.                                            9.3%               6.7%               5.7%              7.7%               6.1%
Value adjustments                                                    -1.6%               0.4%               2.2%              0.3%               3.7%
Foreign taxation on profits                                          -1.7%               0.0%              -0.7%             -1.1%              -1.5%
Foreign tax deferrals                                                 0.0%               0.0%               0.0%              0.0%               0.0%
Yield before interest charges                                         6.0%               7.1%               7.2%              6.9%               8.2%
Yield after interest charges (in local currency)                      4.7%               9.1%               7.2%              9.2%               8.2%
Currency adjustment                                                   0.0%               0.0%               0.0%              0.0%               0.4%
Final net yield (in fund’s currency)                                  4.7%               9.1%               7.2%              9.2%               8.6%

II: Liquid resources

III. Overall yield
Before fund management expenses
After fund management expenses (calculated by BVI method)

Analysis of invested capital
Weighted averages ((EUR mill.)

Real estate                                                            77.0             142.4              409.7               80.4              309.7
Loan volume                                                            19.5              75.6               22.7               31.3                0.0
Liquidity
Fund assets

Value adjustments 2)
as at closing date (EUR mill.)

Expert valuations (market values)                                     117.1             161.5              436.8               82.0              323.8
Rentals used for expert valuation                                       7.3              13.5               26.5                5.1               19.1

Total value adjustment                                                 -1.2                0.5               9.2                0.2               11.3
Total value adjustment as per expert opinion                           -1.2                1.6               8.4                0.0               11.3
Other value adjustments                                                 0.0               -1.1               0.8                0.2                0.0
Positive value adjustments as per expert opinion                        0.0                1.6              13.5                0.0               11.5
Other positive value adjustments                                        0.0                0.0               1.5                0.2                0.0
 Positive value adjustments from amendment of
 acquisition cost of existing properties                                0.0                0.0                1.5               0.2                0.0
 Profit on initial valuation                                            0.0                0.0                0.0               0.0                0.0
 Profit on projects                                                     0.0                0.0                0.0               0.0                0.0
 Profit on sale 1)                                                      0.0                0.0                0.0               0.0                0.0
Negative value adjustments as per expert opinion                       -1.2                0.0               -5.1               0.0               -0.2
Other negative value adjustments                                        0.0               -1.1               -0.7               0.0                0.0
 Negative value adjustments from amendment of
 acquisition cost                                                       0.0               -1.1               -0.7               0.0                0.0
 Loss on initial valuation                                              0.0                0.0                0.0               0.0                0.0
 Loss on projects                                                       0.0                0.0                0.0               0.0                0.0
 Loss on sale 1)                                                        0.0                0.0                0.0               0.0                0.0
 Foreign tax deferrals                                                  0.0                0.0                0.0               0.0                0.0


1)
     Profit or loss on sale are spread across several items in the schedule ‘Movements in fund assets’ and are shown here inc. adjustments in expert
      valuation of market value for the properties sold during the course of the year under review.
2)
     ‘Other negative value adjustments’ inc. foreign tax deferrals
3)
     In order to present a true picture of the yield, the land held through a real-estate company in Belgium has been added to the corresponding directly owned properties.




                                                                                                                                                                          25
Analysis of yields and value adjustments




 Yields and value adjustments

 Investments through real-estate companies                                            Hungary               Japan               USA            Total     Grand total
 Percentage yields                                                                                                                 through real-estate companies

 I. Real estate
 Gross yield                                                                              5.4%               5.6%             13.3%               7.7%               6.5%
 Operating expenses                                                                      -1.5%              -3.5%             -7.9%              -1.8%              -0.9%
 Yield after operating exp.                                                               3.9%               2.2%              5.5%               5.9%               5.5%
 Value adjustments                                                                       -2.6%               0.4%              1.8%               1.7%               1.4%
 Foreign taxation on profits                                                             -0.1%              -0.3%             -0.8%              -0.9%              -0.5%
 Foreign tax deferrals                                                                    0.0%               0.0%              0.0%               0.0%              -0.7%
 Yield before interest charges                                                            1.2%               2.3%              6.4%               6.7%               5.8%
 Yield after interest charges (in local currency)                                         0.9%               2.2%              7.2%               7.2%               6.0%
 Currency adjustment                                                                      1.9%               1.3%             -2.2%               0.0%              -0.4%
 Final net yield (in fund’s currency)                                                     2.8%               3.5%              4.9%               7.2%               5.7%

 II. Liquid resources                                                                                                                                                2.2%

 III. Overall yield
 Before fund management expenses                                                                                                                                     4.6%
 After fund management expenses (calculated by BVI method)                                                                                                           4.1%

 Analysis of invested capital
 Weighted averages (EUR mill.)

 Real estate                                                                               48.9              81.5              160.9            1.309.4           6,597.0
 Loan volume                                                                                4.1              47.0               63.3              263.5           1,336.2
 Liquidity                                                                                                                                                        2,318.9
 Fund assets                                                                                                                                                      7,579.7

 Value adjustments 2)
 as at closing date (EUR mill.)

 Expert valuations (market values)                                                         48.9              82.2              157.4            1.409.6           6,119.4
 Rentals used for expert valuation                                                          3.8               4.0               18.5               97.9             390.4

 Total value adjustment                                                                    -1.3                0.4                2.9              22.1              45.9
 Total value adjustment as per expert opinion                                              -1.1                0.4                3.2              22.7              14.6
 Other value adjustments                                                                   -0.2                0.0               -0.4              -0.6              31.2
 Positive value adjustments as per expert opinion                                           0.0                0.4                3.2              30.3             133.8
 Other positive value adjustments                                                           0.0                0.0                0.0               1.7             116.5
  Positive value adjustments from amendment of
  acquisition cost of existing properties                                                   0.0                0.0                0.0               1.7                2.3
  Profit on initial valuation                                                               0.0                0.0                0.0               0.0                0.0
  Profit on projects                                                                        0.0                0.0                0.0               0.0                0.0
  Profit on sale 1)                                                                         0.0                0.0                0.0               0.0              114.2
 Negative value adjustments as per expert opinion                                          -1.1                0.0                0.0              -7.6             -119.2
 Other negative value adjustments                                                          -0.2                0.0               -0.4              -2.3              -85.3
  Negative value adjustments from amendment of
  acquisition cost                                                                         -0.2                0.0               -0.4              -2.3               -8.7
  Loss on initial valuation                                                                 0.0                0.0                0.0               0.0                0.0
  Loss on projects                                                                          0.0                0.0                0.0               0.0                0.0
  Loss on sale 1)                                                                           0.0                0.0                0.0               0.0              -33.1
  Foreign tax deferrals                                                                     0.0                0.0                0.0               0.0              -43.5


 1)
      Profit or loss on sale are spread across several items in the schedule ‘Movements in fund assets’ and are shown here inc. adjustments in expert valuation of market
      value for the properties sold during the course of the year under review.
 2)
      ‘Other negative value adjustments’ inc. foreign tax deferrals
 3)
      In order to present a true picture of the yield, the land held through a real-estate company in Belgium has been added to the corresponding directly owned properties.




26
Movements in fund assets




                                                            EUR              EUR                 EUR                EUR
     Fund assets at 01 October 2005                                                                     8,884,266,244.57
     Distribution for prior year 1)                                                                      -267,094,324.80
     Adjustment for units issued or
     redeemed on or before
     date of distribution 2)                                                                               17,487,773.28

     Cash inflow from unit sales 3)                                                    572,664,828.61
     Cash outflow from unit redemptions 3)                                          -2,640,823,213.30
     Net cash flow                                                                                      -2,068,158,384.69
     Earnings adjustment 4)                                                                                 35,242,193.47
     Net revenue from ordinary activities5)                                                                213,564,118.53
     Realised profits
     less unrealised valuation adjustments
     from prior years
        on real estate 6)                         204,673,489.28    44,856,280.47     159,817,208.81
           (of which: in foreign currency 16)     179,472,320.43    29,213,924.10     150,258,396.33)
        on holdings in real-estate companies 6)             0.00             0.00               0.00
           (of which: in foreign currency: 16)              0.00             0.00               0.00)
        on investments of liquid funds 7)          18,135,782.04    20,686,402.06      -2,550,620.02
           (of which: in foreign currency: 16)              0.00             0.00               0.00)
                                                                                                          157,266,588.79
     Realised losses
     less unrealised valuation adjustments
     from prior years
        on real estate 8)                         -21,201,390.76      -451,983.14     -20,749,407.62
           (of which: in foreign currency 16)               0.00             0.00               0.00)
        on holdings in real-estate companies 8)             0.00             0.00               0.00
           (of which: in foreign currency 16)               0.00             0.00               0.00)
        on investments of liquid funds 9)          -3,055,075.00             0.00      -3,055,075.00
           (of which: in foreign currency 16)               0.00             0.00               0.00)
                                                                                                          -23,804,482.62
     Valuation adjustment of unrealised profits
       on real estate 10)                                                             105,319,146.47
          (of which: in foreign currency 16)       38,578,167.70)
       to accruals for capital gains tax 15)                                          -43,455,586.65
          (of which: in foreign currency 16)       -4,670,886.65)
       on holdings in real-estate companies 10)                                        57,070,108.48
          (of which: in foreign currency 16)       18,654,872.05)
       on investments of liquid funds 11)                                               8,604,523.08
          (of which: in foreign currency: 16)               0.00)
                                                                                                          127,538,191.38
     Valuation adjustment of unrealised losses
       on real estate 12)                                                            -189,014,053.25
          (of which: in foreign currency: 16)     -58,303,379.71)
       on holdings in real-estate companies 12)                                         -3,331,624.21
          (of which: in foreign currency 16)         378,790.55)
       on investments of liquid funds 13)                                                       0.00
          (of which: in foreign currency: 16)               0.00)
                                                                                                         -192,345,677.46
     Exchange rate adjustments 14)                                                                        -20,075,612.21


     Fund assets at 30 September 2006                                                                    6,863,886,628.24




28
                                                 Explanatory notes to movements in fund assets




The schedule of movements in fund assets          5)   Net income from ordinary activities      9)    Losses realised on liquid resources
shows the events occurring during the peri-            is shown in the Statement of Rev-              (securities, money market instru-
od under review culminating in the sched-              enue and Expenses.                             ments, fund units) are calculated in
ule of assets as of the end of that period. It                                                        the same way as for realised profits.
gives details of the changes that took place      6)   Profits realised on directly held real
in the assets between the beginning and                estate and on holdings in real-estate    10)   The net valuation adjustment of
the end of the financial year.                         companies are the difference                   unrealised profits on real estate and
                                                       between proceeds from sale and                 on holdings in real-estate compa-
1)     This is the amount of the distribu-             book value for tax purposes.                   nies represents value reassessments
       tion shown in last year’s annual                                                               and adjustments in book values
       report (please refer to the total dis-          Unrealised valuation adjustments               during the financial year. These
       tribution shown there in the State-             from prior years on real estate and            include changes in market value fol-
       ment of Revenue and Expenses                    holdings in real-estate companies              lowing value reassessment, book
       under the heading ‘Calculation of               result from value reassessments and            profits on inclusion of real estate in
       distribution’).                                 adjustments in book value. Deduc-              the fund’s portfolio and any other
                                                       tion of unrealised profits from the            adjustments to the book value of
2)     This item shows the net value of                prior year yields the profits realised         real estate or holdings in real-estate
       units issued and redeemed between               during the year under review. In               companies. These can, for example,
       the end of the financial year and               cases where taxes on profits were              result from creation or reversal of
       the date of distribution. Persons               paid on sale of directly held foreign          accruals, subsequent adjustments
       acquiring units during this period              real estate or holdings in foreign             to the purchase price, reimburse-
       are entitled to a distribution, even            real-estate companies, the realised            ment of costs or acquisition of addi-
       though their units are not includ-              profit is reduced by the amount of             tional small areas of land.
       ed in the cash inflow from units                tax paid.
       issued during the year under review.                                                     11)   The net adjustment of unrealised
       Conversely, persons selling their          7)   Profits realised on investments of             profits on investment of liquid
       units during this period do not                 liquid funds (securities, money mar-           resources represents the changes in
       qualify for a distribution, even                ket instruments, fund units) are the           quoted prices of securities, money
       though their units are not includ-              difference between purchase price              market instruments and investment
       ed in the cash outflow from units               and the higher amount received at              shares held by the fund during the
       redeemed during the year under                  sale or maturity. Unrealised valua-            year under review.
       review.                                         tion adjustments on investments of
                                                       liquid funds include changes in          12)   The net valuation adjustment of
3)     Cash inflow from unit sales and                 quoted prices of sold or matured               unrealised losses on real estate and
       outflow from unit redemptions are               securities, money market instru-               on holdings in real-estate compa-
       calculated by multiplying the rele-             ments, fund units up to the end of             nies represents reassessments and
       vant redemption price by the num-               the prior year. The deduction of               changes in book values during the
       ber of units issued or redeemed.                unrealised profits from the prior              financial year. The explanations con-
       The redemption price includes the               year yields the profits actually               tained in Note 10) above also apply
       accumulated income per unit.                    realised during the period under               to this item.
                                                       review. In cases where taxes on
4)     Income adjustments are therefore                profits were paid on sale of fund        13)   The net adjustment of unrealised
       deducted from the cash inflow and               assets in foreign countries, the               losses on investment of liquid
       outflow from the sale and redemp-               realised profit is reduced by the              resources represents changes in
       tion of units and the resulting net             amount of tax paid.                            the quoted prices of securities,
       amount represents the actual                                                                   money market instruments and
       changes in assets. Consequently,           8)   Losses realised on directly held real          investment shares held by the
       the earnings adjustment ensures                 estate and on holdings in real-estate          fund during the year under review.
       that the distribution per unit is not           companies are calculated in the
       influenced by changes in units                  same way as for realised profits.
       issued.




                                                                                                                                         29
14)   The item ‘Exchange rate adjust-
      ments’ represents the difference in
      valuation of assets denominated in
      foreign currencies at the exchange
      rates applying at the beginning and
      the end of the period under review
      and do not include adjustments in
      valuation of the assets themselves,
      which are shown at the exchange
      rate applying at the end of the peri-
      od under review in the net adjust-
      ment of unrealised profits/losses on
      real estate, holdings in real-estate
      companies and investments of liq-
      uid resources. In the case of assets
      acquired during the year under
      review the difference between the
      valuation at the exchange rate
      applying on the date of their capi-
      talisation and at the rate applying
      at closing date is stated. This item
      also includes exchange rate profits/
      losses on ongoing transactions in
      non-Euro currencies and fluctua-
      tions in foreign currency derivatives
      transactions not yet completed at
      balance sheet closing date. Realised
      profits/losses on foreign currency
      derivatives transactions completed
      during the year under review which
      are contained therein do not include
      the amount of any value reassess-
      ments.

15)   Tax accruals for capital gains tax on
      anticipated future profits from sale
      of directly owned foreign real estate
      are shown at the exchange rate
      applying at balance sheet closing
      date, adjusted for changes from the
      exchange rate used for the prior
      year’s balance.

16)   Foreign currencies are defined as
      all non-Euro currencies. They
      include British pounds, Australian
      dollars, Japanese yen, Swedish
      crowns, Polish zloty, Hungarian
      forints and US dollars.




30
Schedule of assets as of 30 September 2006




                                                                             EUR                EUR                EUR    Percentage
                                                                                                                             share of
                                                                                                                          fund assets
     I. Real estate (see page 38)
        1. Residential real estate                                                             0.00                             0.00
           (of which: in foreign currency:                                  0.00)
        2. Commercial real estate                                                   4,706,681,662.49                           68.57
           (of which: in foreign currency:                        988,144,854.66)
        3. Mixed-use
           real estate                                                                         0.00                             0.00
           (of which: in foreign currency:                                  0.00)
        4. Commercial sites
           under development                                                                   0.00                             0.00
           (of which: in foreign currency:                                  0.00)
        5. Undeveloped sites                                                                   0.00                             0.00
           (of which: in foreign currency:                                  0.00)
        6. Other sites and land rights (Section 67, Paragraph 2
           of German Investments Act)                                                          0.00                             0.00
           (of which: in foreign currency:                                  0.00)
                                                                                                       4,706,681,662.49        68.57
        (Total in foreign currency:                               988,144,854.66)
     II. Holdings in real-estate companies
         1. Majority holdings                                                        901,725,397.10                            13.14
         2. Minority holdings                                                                  0.00                             0.00
                                                                                                        901,725,397.10         13.14
        (Total in foreign currency:                               368,158,775.37)
     III. Investments of liquid funds (see page 45)
          1. Credit balances at banks                                                753,190,634.79
             (of which: in foreign currency:                       46,498,930.99)
          2. Money market instruments                                                          0.00
             (of which: in foreign currency:                                0.00)
          3. Investment shares                                                                  0.00
          4. Securities                                                             1,127,907,000.00
             (of which: in foreign currency:                                0.00)
                                                                                                       1,881,097,634.79        27.41
     IV. Other assets
         1. Receivables for facility management                                       59,448,360.61
            (of which: in foreign currency:                        19,492,948.48)
         2. Receivables from real-estate companies                                   384,368,507.70
            (of which: in foreign currency:                       151,487,523.32)
         3. Interest receivable                                                       14,844,499.54
            (of which: in foreign currency:                                 0.00)
         4. Miscellaneous                                                             42,726,050.69
            (of which: in foreign currency:                         8,907,009.98)
                                                                                                        501,387,418.54          7.30

        Total                                                                                          7,990,892,112.92       116.42




32
                                                                                  EUR               EUR                EUR    Percentage
                                                                                                                                 share of
                                                                                                                              fund assets
V. Liabilities
   1. Loans (of which: secured by mortgage                                                860,990,797.02                           12.54
      (Section 82, Paragraph 3 of German Investments Act) 103,783,561.95                                                            1.51
       (of which: in foreign currency:                    397,168,397.34)
   2. Site purchases/sales and development projects                                        33,575,325.30
      (of which: in foreign currency:                       3,919,730.41)
   3. Facility management                                                                  84,204,937.11
      (of which: in foreign currency:                      29,972,675.60)
   4. Other                                                                                11,376,865.62
      (of which: in foreign currency:                       1,515,284.61)
                                                                                                            990,147,925.05         14.43
VI. Accruals                                                                                                136,857,559.63          1.99
    (of which: in foreign currency:                                      44,548,557.86)

      Total                                                                                                1,127,005,484.68        16.42
      Fund assets                                                                                          6,863,886,628.24       100.00
   Unit price (EUR )                                                                              48.38
   No. of units in circulation (units)                                                      141,871,905
Exchange rates as of 30 September 2006 1)
   Australian dollar (AUD)                                   1   EUR   = 1.69774 AUD
   British pound (GBP)                                       1   EUR   = 0.67829 GBP
   Japanese yen (JPY)                                        1   EUR   = 149.59117 JPY
   Hungarian forint (HUF)                                    1   EUR   = 273.51209 HUF
   Swedish crown (SEK)                                       1   EUR   =   9.26809 SEK
   Polish zloty (PLN)                                        1   EUR   =   3.98849 PLN
   US dollar (USD)                                           1   EUR   = 1.26706 USD


1)
     Spot rate at Reuters 10 a.m. morning fixing on 29 Sep. 2006.




                                                                                                                                            33
Explanatory notes to schedule of assets




Fund assets decreased by EUR 2,020.4 mil-         17 real-estate companies are listed in the      Currency futures contracts were entered
lion during financial year 2005/2006 from         schedule of assets at closing date. Share-      into and fulfilled during the year under
EUR 8,884.3 million to EUR 6,863.9 mil-           holders’ loans totalling EUR 384.4 million      review to hedge the exchange risk on the
lion. Real-estate assets at balance sheet         and third-party loans totalling EUR 317.5       British, US, Australian, Japanese and
closing date totalled EUR 4,706.7 million.        million have been granted to them. The          Swedish real-estate assets and these no
                                                  real-estate companies hold commercial           longer affect the schedule of assets. Hedg-
The following real estate was sold during         real estate with a market value of EUR          ing contracts to protect British real-estate
financial year 2005/2006: five properties         1,398.1 million. All information on site        assets had a total sales value of EUR
in Great Britain, seven properties in the         area, type, location, year of construction      2,543.7 million, to protect US real-estate
Netherlands, one property in Spain and            or acquisition, net internal area, market       assets EUR 798.9 million, to protect Aus-
two properties in Australia. Please refer to      value and other data required on these          tralian real-estate assets EUR 702.1 mil-
the schedule of real-estate purchases and         real-estate companies pursuant to Section       lion, to protect Swedish real-estate assets
sales for the information on these sales          79 of the German Investments Act (InvG)         EUR 800.1 million and to protect Japanese
transactions required pursuant to Section         are shown in the schedule of real estate.       real-estate assets EUR 145.1 million.
79 of the German Investments Act (InvG).
                                                  The valuation for fire insurance purposes       Other assets totalling EUR 501.4 million
Foreign real-estate assets had a total value      of the real estate owned by real-estate         consist of the following items: receivables
of EUR 3,018.3 million at closing date, of        companies is EUR 857.6 million.                 for facility management EUR 59.5 million,
which EUR 2,030.2 million relate to real                                                          receivables from real-estate companies
estate situated in the Euro currency area.        Investments of liquid assets decreased by       EUR 384.4 million, interest receivable EUR
The foreign currency share of EUR 988.1           EUR 1,232.9 million from EUR 3,114.0 mil-       14.8 million and miscellaneous items EUR
million consists of real estate valued at         lion to EUR 1,881.1 million. Credit bal-        42.7 million.
EUR 703.4 million in Great Britain, EUR           ances with banks total EUR 753.2 million,
27.0 million in Poland and EUR 257.7 mil-         of which EUR 94.2 million are held on cur-      The main items in the receivables for facili-
lion in the USA.                                  rent account and EUR 659.0 million as           ty management totalling EUR 59.5 million
                                                  day-to-day money deposits. Holdings of          are: receivables from tenants EUR 7.2 mil-
A total of 67 directly owned real-estate          fixed-interest securities fell by EUR 1,280.1   lion, claims for expenses not yet allocated
properties were held at closing date. Details     million from EUR 2,408.0 million to EUR         EUR 48.9 million, cash balances, token
of these together with all information on         1,127.9 million. All further details can be     payments, claims against facility managers
site area, type, location, year of construc-      obtained from the schedule of fixed-inter-      together totalling EUR 3.3 million. The
tion or acquisition, net internal area, mar-      est securities. The foreign currency item of    claims for expenses not yet allocated are
ket value and other data required pursuant        EUR 46.5 million in ‘Investments of liquid      balanced by tenants’ advance service
to Section 79 of the German Investments           assets’ includes: 6.8 million British pounds    charge payments of EUR 49.3 million. The
Act (InvG) are shown in the schedule of           at the middle rate of 0.67829 GBP per           foreign currency share of receivables for
real estate.                                      EUR, 114.7 million Swedish crowns at the        facility management totalling EUR 19.5
                                                  middle rate of 9.26809 SEK per EUR, 5.4         million includes EUR 6.3 million from
The costs of acquisition and/or construc-         million Polish zloty at the middle rate of      Great Britain, EUR 10.1 million from the
tion of directly owned real estate total EUR      3.98849 PLN per EUR, 1.7 million US dol-        USA and EUR 3.1 million from Australia.
4,513.1 million, all of which is commercial       lars at the middle rate of 1.26706 USD per
real estate. The valuation of the directly        EUR and 36.4 million Australian dollars at      Receivables from real-estate companies
owned buildings for fire insurance purpos-        the middle rate of 1.69774 AUD per EUR.         totalled EUR 384.4 million and relate solely
es totals EUR 2,995.9 million, all of which       All these rates were those applying on 29       to shareholders’ loans. The foreign curren-
relates only to commercial real estate.           September 2006.                                 cy share of receivables from real-estate
                                                                                                  companies totalling EUR 151.5 million
Holdings in real-estate companies totalled        Of the total liquid funds of EUR 1,881.1        relates solely to holdings in Sweden.
EUR 901.7 million at closing date. These          million, the following amounts were ear-
are all majority interests. Foreign real-estate   marked for specific purposes: EUR 466.7         The interest receivable item of EUR 14.8
companies account for EUR 809.5 million           million for the dividend distribution, EUR      million relates to interest of EUR 14.7 mil-
of this figure, which includes EUR 441.3          343.2 million for compliance with require-      lion receivable on securities and EUR 0.1
million in Euro currency area countries.          ments on minimum liquidity, EUR 210.9           million on call-money and term deposits.
The foreign currency share of EUR 368.2           million for facility management costs, EUR
million consists of real estate valued at         81.8 million for interest payable on loans      The main items under the heading ‘Miscel-
EUR 40.9 million in Hungary, EUR 177.3            and EUR 33.6 million for residual liabilities   laneous’ totalling EUR 42.7 million are:
million in Sweden, EUR 110.2 million in           from real-estate acquisitions and sales.        EUR 17.5 million for refund of input tax,
the USA and EUR 39.8 million in Japan.                                                            a tax deposit of EUR 11.5 million in the
                                                                                                  Netherlands, interest receivable of EUR 4.4


34
million on shareholders’ loans to affiliated        Liabilities of EUR 84.2 million from facility
real-estate companies, a tax deposit of             management include advance rental pay-
EUR 1.9 million in Great Britain, deferred          ments of EUR 20.0 million, tenants’
items receivable totalling EUR 0.9 million,         advance payments against service charges
interest receivable of EUR 0.4 million on a         of EUR 49.3 million, cash security deposits
claim for refund of input tax, EUR 0.4 mil-         of EUR 5.6 million, renovation premiums
lion on a claim for refund of income tax,           of EUR 9.1 million and liabilities for con-
receivables of EUR 0.5 million from third           struction work EUR 0.2 million. The for-
parties, unrealised profits of EUR 0.2 mil-         eign currency share of EUR 30.0 million
lion on open currency futures contracts             includes EUR 13.9 million relating to Great
with a total volume of EUR 65.2 million             Britain, EUR 12.1 million relating to the
and an outstanding claim of EUR 5.0 mil-            USA and EUR 4.0 million relating to Aus-
lion relating to the sale of an Australian          tralia.
property. The foreign currency share totals
EUR 8.9 million, of which EUR 2.4 million           Other liabilities of EUR 11.4 million include
relates to claims in Great Britain, EUR 1.3         the following items: VAT payable EUR 2.9
million in Sweden, EUR 0.2 million in               million, loan interest deferrals of EUR 2.1
Poland and EUR 5.0 million in Australia.            million, EUR 0.8 million for income tax
                                                    refund received in error, EUR 0.1 million
Liabilities decreased during the year under         for foreign withholding tax and unrealised
review by EUR 390.3 million from EUR                losses of EUR 5.5 million on open currency
1,380.4 million to EUR 990.1 million.               futures contracts with a total volume of
                                                    EUR 847.6 million. The foreign currency
Borrowings totalling EUR 861.0 million              share of EUR 1.5 million includes EUR 1.1
relate to loans for part financing of real          million relating to Great Britain, EUR 0.3
estate in Great Britain, Belgium, Spain,            million to the USA and EUR 0.1 million to
France, Italy and the USA. The borrowings           Australia.
include loans denominated in Euro totalling
EUR 463.8 million, loans denominated in             Accruals totalling EUR 136.9 million were
British pounds equivalent to EUR 293.4              created for the following items: fees for
million and loans denominated in US dol-            external management and consultancy
lars equivalent to EUR 103.8 million.               fees EUR 2.7 million, maintenance work
                                                    EUR 4.9 million, tax advisers’ fees EUR 0.4
Liabilities of EUR 33.6 million for real-           million, real-estate expert fees not yet
estate purchases/sales and development              invoiced EUR 0.6 million and audit, report
projects represent residual liabilities of EUR      printing and publication charges EUR 0.2
29.5 million relating to purchases of real          million. There are also accruals totalling
estate and real-estate companies and                EUR 50.9 million for outstanding tax liabil-
residual liabilities of EUR 4.1 million relat-      ities of EUR 30.2 million on income earned
ing to sales of real estate. The main items         in Great Britain, the Netherlands, Spain,
in residual liabilities from sales of real estate   Italy, Eire, Poland, the USA and Australia,
are EUR 1.2 million for estate agents’ fees,        and of EUR 77.2 million for Capital Gains
EUR 1.1 million for selling fees in accor-          Tax on anticipated future profits from sale
dance with Section 14, Paragraph 2 of the           of directly held foreign real estate. The for-
Special Contract Conditions, EUR 0.7 mil-           eign currency share of accruals totalling
lion for solicitors’ and notaries’ fees, EUR        EUR 44.5 million includes EUR 7.0 million
0.5 million for other consultancy fees and          relating to Great Britain, EUR 0.4 million to
EUR 0.1 million for valuations by the inde-         Poland, EUR 15.9 million to the USA and
pendent expert committee. The foreign               EUR 21.2 million to Australia.
currency share of EUR 3.9 million includes
EUR 2.1 million relating to Great Britain,
EUR 0.1 million relating to Poland, EUR 0.1
million relating to the USA, EUR 1.4 mil-
lion relating to Australia and EUR 0.2 mil-
lion relating to a residual liability from the
acquisition of a Hungarian real-estate
company.
                                                                                                     35
Four-year summary of Deka-ImmobilienEuropa’s financial development




                                    Financial year ended   Financial year ended   Financial year ended   Financial year ended
                                            30 Sep. 2006          30 Sep. 2005           30 Sep. 2004           30 Sep. 2003
Schedule of assets                                   EUR                    EUR                    EUR                    EUR
Real estate                            4,706,681,662.49      5,855,090,059.50       5,524,893,396.75       4,745,684,622.20
Holdings in real-estate companies        901,725,397.10        854,033,182.95         955,023,020.16         889,134,210.51
Investments of liquid resources        1,881,097,634.79      3,113,977,694.08       3,966,780,636.71       3,614,774,535.09
Other assets                             501,387,418.54        517,528,560.04         710,821,905.63         704,206,473.81
less: Liabilities and accruals         -1,127,005,484.68    -1,456,363,252.00      -1,282,460,612.15      -1,045,315,171.84
Fund assets                            6,863,886,628.24      8,884,266,244.57       9,875,058,347.10       8,908,484,669.77
Number of units in circulation              141,871,905           185,482,170            205,263,575            184,275,691
Unit price                                        48.38                  47.89                  48.10                  48.34
Distribution per unit                              3.29                   1.44                   1.44                   1.60
Date of distribution                         05.01.2007            05.01.2006             06.01.2005             07.01.2004
Coupon No.                                           10                      9                      8                      7




                                                                                                                                37
Schedule of real estate included in the assets as of 30 September 2006




                                                                                                                                Year of construction/




                                                                                                                                                                      Net internal area for




                                                                                                                                                                                              accommodation m2
                                                                                                                                                                      commercial use m2
                                                                     Development




                                                                                                                                                                                                                    equipment 4)
                                                    real estate 1)




                                                                                                                                                                                                                    Fittings and
                                                                                                                                                                                              Residential
                                                                                                             acquisition




                                                                                                                                conversion
                                                                     status 2)




                                                                                                             Date of




                                                                                                                                                           area m2
                                                                                          Type of
                                                    Type of




                                                                                          use 3)




                                                                                                                                                           Site
Location

I. Directly owned real estate in Euro currency area countries

Belgium
1040 Brussels                                           G               F            B/P: 90%; Ha: 3%;      Jul. 97             1996                        782       5,195                         –               K, Pa
Avenue d' Auderghem 2-14                                                               L: 1%; Kfz: 6%
1200 Brussels                                           G               F             B/P: 86%; L: 3%;      Dec. 99             1997                      4,189      11,783                         –            K, La, Pa
Avenue Marcel Thiry 79/81                                                                 Kfz: 11%
1000 Brussels                                           G               F             B/P: 83%; L: 3%;      May 98          1967/1997 and                 2,519       8,666                         –               K, Pa
Boulevard du Régent 43-44 / Rue Ducale 67-71                                              Kfz: 14%                           1967/ 2004
1000 Brussels                                           G               F             B/P: 90%; L: 2%;      Jul. 97           1989 and                    1,758       6,309                         –               K, Pa
Boulevard du Régent 45-46 /                                                                Kfz: 8%                           1850-1900/
Rue Ducale 83                                                                                                                1989/2004
1000 Brussels                                           G               F             B/P: 89%; L: 3%;      Jul. 04           1974/2004                  1,175 5)     5,276                         –               K, Pa
Boulevard du Régent 47-48                                                                  Kfz: 8%
1040 Brussels                                           G               F             B/P: 89%; L: 2%;      Jul. 97           1993/1994                     515       4,562                         –               K, Pa
Rue Guimard 7-7a                                                                           Kfz: 9%

Germany
14059 Berlin                                            G               F             B/P: 92%; L: 4%;      Apr. 03             2003                        962       3,257                   154                         Pa
Am Bahnhof Westend 9/ Sophie-Charlotten-Straße 21                                     W: 3%; Kfz: 1%
14059 Berlin                                            G               F             B/P: 92%; Ha: 3%;     Jan. 00             1999                      1,877       8,094                   302                  La, Pa
Am Bahnhof Westend 10+11                                                           L: 1%; W: 2%; Kfz: 2%
10117 Berlin                                            G               F           B/P: 65%; Ha: 24%;      Jul. 00             1999                      3,479      18,467                         –            K, La, Pa
Friedrichstraße 50-55, “Checkpoint Charlie“                                        L: 3%; S: 2%; Kfz: 6%
10117 Berlin                                            G               F            B/P: 94%; Kfz: 6%      Jan. 01             2003                      1,689       6,445                         –               K, Pa
Reinhardtstraße 52, “Kronprinzen Karree“
10623 Berlin                                            G               F            B/P: 19%; H: 80%;      Jun. 05             2004                      4,332      18,881                         –            K, La, Pa
Straße des 17. Juni 106-108, “TiergartenTower“                                             Kfz: 1%
44787 Bochum                                            G               F            B/P: 5%; Ha: 91%;      Mar. 03          1956/1989/                   3,236      10,605                         – K, La, Pa, R
Kortumstraße 85/ Bongardstraße, “City Point“                                               L: 4%                                1992
01129 Dresden                                           G               F           B/P: 66%; Ha: 22%;      May 97              1993                      8,824      15,536                         –                     Pa
Riesaer Straße 3-5                                                                 L: 4%; S: 1%; Kfz: 7%
40213 Düsseldorf                                        G               F            B/P: 81%; Ha: 8%;      Aug. 03             2003                      5,121      29,506                         –            K, La, Pa
Benrather Straße 18-20, “Benrather Karree“                                             L: 2%; Kfz: 9%
40235 Düsseldorf                                        G               F             B/P: 87%; L: 4%;      Mrz. 00             1989                      1,491       3,200                         –                     Pa
Cranachstraße 35                                                                           Kfz: 9%
40547 Düsseldorf                                        G               F             B/P: 42%; Ha: 6%;     Sep. 00             1999                      6,992      15,977                         –            K, La, Pa
Fritz-Vomfelde-Straße 34-38,                                                       H: 43%; L: 2%; Kfz: 7%
“Neues Zentrum Seestern”
40547 Düsseldorf                                        G               F            B/P: 92%; Kfz: 8%      Apr. 01             2000                      5,282      13,182                         –               K, Pa
Hansaallee 249, “Forum Oberkassel“
40227 Düsseldorf                                        G               F             B/P: 84%; L: 8%;      Mai 02              1998                      7,808      35,500                         –            K, La, Pa
Moskauer Straße 19                                                                         Kfz: 8%
45127 Essen                                             G               F                Ha: 100%           Apr. 03             1991                     2,178 6)     9,387                         – K, La, Pa, R
Markt 5-6 / Kennedyplatz 9-11
60547 Frankfurt                                         G               F           B/P: 40%; L/S: 52%;     Oct. 03             2003                    33,766 7)    22,295                         –                     Pa
Cargo City Süd “AIR CARGO Center“ 7)                                                      Kfz: 8%
60439 Frankfurt                                         G               F            B/P: 93%; Kfz: 7%      Feb. 98           1987/1989                  80,000      87,719                         – K, La, Pa, R
Lurgiallee 5, “Lurgi-Haus“
60327 Frankfurt                                         G               F             B/P: 93%; L: 1%;      Apr. 03             2003                      7,192      24,687                         –               K, Pa
Mainzer Landstraße 178-190,                                                            S: 3%; Kfz: 3%
“Asset Management Center“
60303 Frankfurt                                         G               F             B/P: 91%; L: 4%;      Feb. 03             2003                        503       1,680                         –            K, La, Pa
Reuterweg 49                                                                               Kfz: 5%
60325 Frankfurt                                         G               F             H: 99%; W: 1%         Apr. 97          1953/1995-96 2,545                       7,009                   151                K, La, Pa
Savignystraße 14-16 / Westendstraße 11-13,                                                                                 and 1863/1993-96
“Sofitel“
20097 Hamburg                                           G               F             B/P: 97%; S: 1%;      Dec. 00             2000                      1,030       4,773                         –                     Pa
Wandalenweg 30                                                                             Kfz: 2%
85737 Ismaning                                          G               F             B/P: 90%; L: 2%;      Feb. 01             2000                      9,796      17,009                         –              La, Pa
Osterfeldstraße 82/ Adalperostraße 31/                                                     Kfz: 8%
Steinheilstraße 10, “ARTICOM“, Haus C, D und E
34117 Kassel                                            G               F           B/P: 30%; Ha: 66%;      Apr. 97          1950/1965/                   1,567       3,969                   397                         Pa
Königsplatz 55 / Wolfsschlucht 24 a,                                                       W: 4%                               1992
“Henschelhaus“
24103 Kiel                                              G               F             Ha: 96%; L: 4%        Jul. 03          1996, 2003                     941       3,936                         – K, La, Pa, R
Holstenstraße 46, 48-50




38
 Schedule of real estate included in the assets as of 30 September 2006




                                                                                                                             Year of construction/




                                                                                                                                                                  Net internal area for




                                                                                                                                                                                          accommodation m2
                                                                                                                                                                  commercial use m2
                                                                   Development




                                                                                                                                                                                                                equipment 4)
                                                  real estate 1)




                                                                                                                                                                                                                Fittings and
                                                                                                                                                                                          Residential
                                                                                                           acquisition




                                                                                                                             conversion
                                                                   status 2)




                                                                                                           Date of




                                                                                                                                                       area m2
                                                                                        Type of
                                                  Type of




                                                                                        use 3)




                                                                                                                                                       Site
Location
55116 Mainz                                           G               F                Ha: 100%           Oct. 03            2003                      1,253      7,265                         – K, La, Pa, R
Markt 19-29
80339 Munich                                          G               F             B/P: 88%; L: 5%;      Aug. 99            2001                     14,360     28,578                         –            K, La, Pa
Barthstraße 22-24, “RONDO“                                                           S: 2%; Kfz: 5%
81829 Munich                                          G               F             B/P: 90%; L: 3%;      Oct. 03            2003                      9,371     21,730                         –            K, La, Pa
Graf-zu-Castell-Straße 1/ Josef-Wild-Straße 20,                                          Kfz: 7%
“Messe-Campus Riem“
81541 Munich                                          G               F             B/P: 91%; L: 4%;      Dec. 02            1991                      9,297     24,723                         –              La, Pa
Hohenwaldeckstraße 1 /                                                                   Kfz: 5%
St.-Martin-Straße 60
80807 Munich                                          G               F            B/P: 71%; Ha: 10%;     Feb. 03            2003                      7,616     11,182                         –            K, La, Pa
Wilhelm-Wagenfeld-Straße 24,                                                     L: 13%; S: 1%; Kfz: 5%
“carrea“
90402 Nuremberg                                       G               F            B/P: 1%; Ha: 87%;      Apr. 03            2003                      3,588     16,582                         – K, La, Pa, R
Karolinenstraße 32-36,                                                           L: 1%; S: 7%; Kfz: 4%
“Kaufhaus Breuninger“
63067 Offenbach                                       G               F             B/P: 90%; L: 4%;      Oct. 03            2004                     13,101     27,921                         –               K, Pa
Kaiserleistraße 10, “Mainoffice“                                                         Kfz: 6%
70173 Stuttgart                                       G               F           B/P: 16%; Ha: 81%;      Nov. 02            2002                      5,822     33,685                         – K, La, Pa, R
Königstraße 10c, 12 /                                                               L: 2%; Kfz: 1%
Kronenstraße 3, “´s ZENTRUM“ 8)
70173 Stuttgart                                       G               F           B/P: 69%; Ha: 19%;      Jun. 00            1982                      3,313      8,147                   240                K, La, Pa
Rotebühlstraße 98-100 /                                                          L: 3%; S: 1%; W: 1%;
Reuchlinstraße 27-29                                                                    Kfz: 7%

France
75009 Paris                                           G               F             B/P: 91%; L: 2%;      Sep. 98            1998                     7,046 9)   29,092                   167                   K, Pa
64-76, Rue de la Victoire / 53,                                                      S: 4%; Kfz: 3%
Rue de Châteaudun, “Opéra-Victoire“
75008 Paris                                           G               F            B/P: 86%; Ha: 7%;      Jun. 00        18th. century /                 784      3,051                         –               K, Pa
120, Rue du Faubourg Saint Honoré                                                    L: 4%; Kfz: 3%                          1997
75002 Paris                                           G               F            B/P: 84%; Ha: 3%;      Dec. 00         1878/2003                    6,400     37,255                         –            K, La, Pa
16/18, Rue du Quatre Septembre /                                                 L: 5%; S: 6%; Kfz: 2%
10-18, Rue de Choiseul /
7-21 Rue de Gramont, “Le Centorial“

Eire
Cork, “Mahon Point Shopping Centre“ 10)               G               F                Ha: 100%           Dec. 02            2005                    116,534     34,379                         – K, La, Pa, R

Italy
20124 Milan,                                          G               F            B/P: 94%; Ha: 3%;      Nov. 04            1984                      6,037     29,126                         –            K, La, Pa
Via Giovanni Battista Pirelli 35                                                     L: 2%; Kfz: 1%

The Netherlands
1101 CM Amsterdam-Südost                              G               F                B/P: 100%          Apr. 04            2004                      2,601     12,126                         –               K, Pa
Herikenbergweg 74-108,
Plaza Arena Block 1, “Jupiter“
1101 BV Amsterdam                                     G               F            B/P: 95%; Kfz: 5%      Sep. 97            1997                      4,095      6,046                         –               K, Pa
Hullenbergweg 250, “Graydon“ 11)
1101 HE Amsterdam                                     G               F                B/P: 100%          Sep. 01            2001                    1,129 12)   24,575                         –               K, Pa
De Entree 99-197, “Oval Tower“ 11)
2516 AK The Hague                                     G               F            B/P: 93%; Kfz: 7%      Oct. 98,        1998/1999/                   7,039     35,190                         –            K, La, Pa
Regulusweg / Zonweg / Wegastraat,                                                                         Apr. 99,           2001
“Haagse Veste IV“,                                                                                        Oct. 99,
Bauteil A, B, C, E, G, H 13) 11)                                                                          Jul. 01
3511 SX Utrecht                                       G               F            B/P: 93%; Kfz: 7%      Jun. 97            1990                      7,555     19,311                         –               K, Pa
Daalseplein 1-101, “Daelse Kwint“ 11)

Austria
1070 Vienna                                           G               F           B/P: 29%; Ha: 69%;      Apr. 99            2000                      2,387      6,472                         – K, La, Pa, R
Mariahilfer Straße 116, “Die 116“                                                        L: 2%
1070 Vienna                                           G               F            B/P: 2%; Ha: 96%;      Dec. 03         1900-1980/                   5,888     28,789                         – K, La, Pa, R
Mariahilfer Straße 42-48, “Kaufhaus Gerngross“                                           L: 2%                               1997
1190 Vienna                                           G               F            B/P: 94%; Kfz: 6%      Nov. 02            2002                      6,209     22,925                         –               K, Pa
Nußdorfer Lände 23-27 / Mooslackengasse,
“Business Center Muthgasse“
1020 Vienna                                           G               F             B/P: 77%; L: 5%;      Jul. 97            1991                     14,380     15,308                         –            K, La, Pa
Obere Donaustraße 23-27, “Siemens-Nixdorfhaus“                                          Kfz: 18%




                                                                                                                                                                                                                         39
Schedule of real estate included in the assets as of 30 September 2006




                                                                                                                                   Year of construction/




                                                                                                                                                                        Net internal area for




                                                                                                                                                                                                accommodation m2
                                                                                                                                                                        commercial use m2
                                                                             Development




                                                                                                                                                                                                                      equipment 4)
                                                            real estate 1)




                                                                                                                                                                                                                      Fittings and
                                                                                                                                                                                                Residential
                                                                                                                 acquisition




                                                                                                                                   conversion
                                                                             status 2)




                                                                                                                 Date of




                                                                                                                                                             area m2
                                                                                                Type of
                                                            Type of




                                                                                                use 3)




                                                                                                                                                             Site
Location
1020 Vienna                                                     G               F           B/P: 88%; L: 3%;    Jan. 00            1999                      8,495     25,014                         –               K, Pa
Obere Donaustraße 29, “Mobilkomhaus“                                                         S: 2%; Kfz: 7%
1010 Vienna                                                     G               F           Ha: 1%; H: 99%      Feb. 04         19th century                 3,006     24,162                         –            K, La, Pa
Opernring 13-15, “Hotel Le Méridien“                                                                                           and 1956/2003

Spain
08002 Barcelona                                                 G               F              H: 100%          Jan. 03           1956/                    1,900 14)   16,173                         –            K, La, Pa
La Rambla 111, “Le MERIDIEN“                                                                                                    1958-1968
08028 Barcelona,                                                G               F          B/P: 31%; Ha: 66%;   Mar. 05            1998                    4,540 16)   24,883                         – K, La, Pa, R
Plaza de Catalunya 2-3, “El Triangle“ 15)                                                        Kfz: 3%
28230 Las Rozas,                                                G               F          B/P: 90%; Kfz: 10%   Nov. 04            1991                    22,140      11,058                         –            K, La, Pa
Gabriel Garcia Márques 2,
Las Rozas Busin. Park,
“Foster Wheeler Building“ 17)

II. Directly owned real estate in countries outside the Euro currency area

Great Britain
Birmingham B3 2QD                                               G               F          B/P: 90%; Ha: 5%;    Mar. 99            1992                      2,683     15,839                         –            K, La, Pa
2-6 Colmore Row, “Colmore Gate“                                                                  Kfz: 5%
London EC4                                                      G               F          B/P: 97%; Ha: 1%;    Nov. 03            2000                    5,352 18)   28,141                         –            K, Pa, R
1 Rose Street / Newgate Street /                                                             L: 1%; Kfz: 1%
Paternoster Square, “Christ Church Court“
London W1                                                       G               F          B/P: 43%; Ha: 57%;   Apr. 01            2003                      1,392      7,118                         – K, La, Pa, R
331-337 Oxford Street,
“333 Oxford Street“
London W1                                                       G               F          B/P: 99%; Kfz: 1%;   Mar. 02            2000                        807      4,437                         – K, La, Pa, R
9 South Street 19)
London SW3                                                      G               F          B/P: 66%; Ha: 33%;   Jun. 02         1911/1994                    3,278      9,951                         – K, La, Pa, R
60 Sloane Avenue,                                                                                Kfz: 1%
“The Leo Burnett Building“

Poland
PL-01-211 Warsaw, 7/9 ul. Gieldowa,                             G               F           B/P: 90%; L: 3%;    Dec. 04            2003                    5,757 20)   12,204                         –            K, La, Pa
“Victoria Building“                                                                              Kfz: 7%

USA
Downers Grove, IL 60515                                         G               F           B/P: 98%; L: 1%;    Dec. 98            1998                    44,514      25,989                         –            K, La, Pa
3025 Highland Parkway, “Highland Landmark II“                                                    Kfz: 1%
San Francisco, CA 94108                                         G               F          B/P: 90%; Ha: 3%;    May 99             1990                      2,954     31,451                         –            K, La, Pa
600 California Street                                                                            Kfz: 7%
San Francisco, CA 94108                                         G               F              Ha: 100%         Aug. 99         1973/1999                      545      1,578                         – K, La, Pa, R
212 One Stockton Street, “Sephora Building“
San Francisco, CA 94108                                         G               F          B/P: 10%; Ha: 87%;   Nov. 99         1987/1999                      505      4,109                         –               K, Pa
One Union Square, “One Union Square“                                                              L: 3%
Washington, D.C. 20005                                          G               F          B/P: 89%; Ha: 8%;    Sep. 97         1908/1990/                   2,244     24,617                         –            K, La, Pa
607 14th Street/ 1333 F Street, “The Westory“                                                    Kfz: 3%                          2002

III. Real estate held through real-estate companies in Euro currency area countries
Name and legal form                                       Domicile of real-estate company                                      Percentage interest held                             Date of acquisition

Belgium
Deka Régent SA 21)                          Rond-point Robert Schuman 6 boîte 5, 1040 Brussels, Belgium                                           100.0%                                        Jul. 04
1000 Brussels                                                   G               –                  –            Jul. 04                    –                 1,175                     –              –                       –
Boulevard du Régent 47-48
La City S.A.                                Rond-point Robert Schuman 6 boîte 5, 1040 Brussels, Belgium                                           100.0%                                        Oct. 00
1210 Brussels                                                   G               F           B/P: 91%; L: 3%;    Okt. 00            2000                      6,262     37,507                         –            K, La, Pa
55, Rue du Progrès, “Boréal“                                                                     Kfz: 6%

Germany
Ettlinger Tor Karlsruhe KG                                 Heegbarg 30, 22391 Hamburg                                                                80.0%                                      Aug. 02
76133 Karlsruhe,                                              G       F       B/P: 3%; Ha: 86%;      Aug. 02                       2005                    24,012      48,785                         – K, La, Pa, R
Rondellplatz, Karl-Friedrich-Straße,                                            L: 8%; Kfz: 3%
Kriegsstraße, Erbprinzenstraße,
“Handels- und Dienstleistungszentrum Ettlinger Tor“
Interest held through 22): Deka Immobilien Beta Karlsruhe GmbH, Mainzer Landstraße 16, 60325 Frankfurt



40
Schedule of real estate included in the assets as of 30 September 2006




                                                                                                                                       Year of construction/




                                                                                                                                                                            Net internal area for




                                                                                                                                                                                                      accommodation m2
                                                                                                                                                                            commercial use m2
                                                                            Development




                                                                                                                                                                                                                            equipment 4)
                                                           real estate 1)




                                                                                                                                                                                                                            Fittings and
                                                                                                                                                                                                      Residential
                                                                                                                     acquisition




                                                                                                                                       conversion
                                                                            status 2)




                                                                                                                     Date of




                                                                                                                                                                area m2
                                                                                                  Type of
                                                           Type of




                                                                                                  use 3)




                                                                                                                                                                Site
Location
France
Deka Central Park SARL                             59, Avenue Victor Hugo, 75116 Paris, France                                                        100.0%                                         Aug. 01
92130 Issy-les-Moulineaux                                      G               F            B/P: 90%; Ha: 2%;       Aug. 01            2000                     2,264     13,214                            –            K, La, Pa
9/15, Rue Maurice Mallet u. 3/5,                                                                  Kfz: 8%
Square Lois Blériot, “Central Park“
MT JEZERCE SAS                                     59, Avenue Victor Hugo, 75116 Paris, France                                                        100.0%                                         Aug. 99
92300 Levallois-Perret                                         G               F             B/P: 88%; S: 4%;       Aug. 99            1994                     2,188     10,550                            –            K, La, Pa
132, Rue de Villiers, “Le Magnum“                                                                 Kfz: 8%
Deka Moissy-Cramayel SARL                          59, Avenue Victor Hugo, 75116 Paris, France                                                        100.0%                                          Dec. 01
77550 Moissy-Cramayel                                          G               F             B/P: 8%; L: 89%;       Dec. 01            2002                    58,672     26,957                            –                       –
104, Rue Denis Papin, “Z.A.C. d' Arvigny“                                                          S: 3%
Deka 54 Boulevard Haussmann SARL            10/12, Avenue de l’Arche, 92419 Courbevoie Cedex, France                                                  100.0%                                          Jan. 02
75009 Paris                                                    G               F            B/P: 6%; Ha: 93%;       Jan. 02          ca. 1880/                  2,356     12,971                            – K, La, Pa, R
54, Boulevard Haussmann                                                                           Kfz: 1%                              2001
21 Rue de la Ville L'Evêque SARL            10/12, Avenue de l’Arche, 92419 Courbevoie Cedex, France                                                  100.0%                                          Jun. 00
75008 Paris                                                    G               F             B/P: 84%; L: 3%;       Jun. 00         1977/1996                   1,278       3,749                           –               K, Pa
21/23, Rue de la Ville l' Evêque                                                              S: 5%; Kfz: 8%
Général Foy SARL                            10/12, Avenue de l’Arche, 92419 Courbevoie Cedex, France                                                  100.0%                                          Jun. 00
75008 Paris                                                    G               B          B/P: 91%; L: 1%; S: 4%;   Jun. 00        19th. century / 1,.737                 8,283 23)                 154 23)                       Pa
6/8/10/12, Rue du Général Foy                                                                 W: 1%; Kfz: 3%                        1990; 2006

Luxemburg
Despa First Real Estate Lux S.A.            121, Avenue de la Faïencerie, 1511 Luxemburg, Luxemburg                                                   100.0%                                          Jun. 00
1855 Luxemburg                                                 G               F             B/P: 84%; L: 7%;       Jun. 00            2002                     5,787     18,221                            –               K, Pa
38, Avenue John F. Kennedy,                                                                       Kfz: 9%
“DekaBank-Gebäude“

IV. Foreign real estate held through real-estate companies in countries outside the Euro currency area

Japan
Deka Shinsen Place Real Estate TMK                 16-5, Minami-Ohi 3-chome, Shinagawa-ku,                                                            100.0%                                          Mar. 02
                                                             Tokyo 140-0013, Japan
Tokyo 150-0045, 9-1 Shinsencho (Shibuya-ku),                   G               F            B/P: 98%; Kfz: 2%       Mar. 02            2001                      537        2,811                           –               K, Pa
“Shinsen Place Building“
Deka Tokyo Real Estate TMK               16-5, Minami-Ohi 3-chome, Shinagawa-ku, Tokyo 140-0013, Japan                                                100.0%                                          Jul. 02
Tokyo 3-1-30, Jingumae, (Shibuya-ku),                          G               F            B/P: 68%; L: 30%;       Jul. 02            2001                     1,438       4,420                           –               K, Pa
“Concept Aoyama Building“                                                                         Kfz: 2%

Sweden
Edsviken Fastighets KB                               Vasagatan 7, 11181 Stockholm, Sweden                                                             100.0%                                          Jul. 04
17072 Solna                                                 G       F       B/P: 86%; L: 1%;                        Jul. 04            2003                     9,850     12,289                            –            K, Pa, La
Björnstigen 85-87, “Skogskarlen 2“                                              Kfz: 13%
Interest held through : Edsviken Holding AB, Vasagatan 7, 11181 Stockholm, Sweden
                     23)



Deka City Cronan Fastighets KB                       Vasagatan 7, 11181 Stockholm, Sweden                                                             100.0%                                          Jun. 03
11144 Stockholm                                             G       F     B/P: 72%; Ha: 15%;                        Jun. 03         1974/2002/                  7,682     38,314                    3,541                  La, Pa
Grävlingen 12 / Jacobsbergsgantan 21-33 /                                L: 3%; S: 4%; W: 5%;                                         2003
Regeringsgatan 57-61 / Mäster Samuelsgatan 28-36 /                              Kfz: 1%
Malmskillnadsgatan 42-44, “City Cronan“
Interest held through : Deka City Cronan AB, Vasagatan 7, 11181 Stockholm, Sweden
                     22)




Hungary
Despa Trust Kft.                               Bajcsy-Zsilinszky út 42-46, 1054 Budapest, Hungary                                                     100.0%                                          Sep. 99
1054 Budapest                                                  G               F             B/P: 89%; S: 4%;       Sep. 99            1998                     1,850     10,500                            –            K, La, Pa
Bajcsy-Zsilinszky út 42-46, “Atrinova“                                                            Kfz: 7%
Central Business Center Rt.                        Horvát utca 14-24, 1027 Budapest, Hungary                                                          100.0%                                          Apr. 99
1027 Budapest                                                  G               F            B/P: 88%; Ha: 2%;       Apr. 99            1996                     3,038       8,655                           –               K, Pa
Horvát utca 14-24, “Central Business Center“                                                     Kfz: 10%

USA
Deka First Real Estate USA LP                  1185 Avenue of the Americas, New York 10036, USA                                                       100.0%                                          Mar. 00
New York, NY 10019                                           G        F       B/P: 95%; Kfz: 5%     Mar. 00                         1966/1990                   2,007     40,829                            –            K, La, Pa
1330 Avenue of the Americas
Interest held through 22): Deka 1330 Corporation, 1185 Avenue of the Americas, New York, NY 10036, USA


                                                                                                                                                                                                                                     41
Schedule of real estate included in the assets as of 30 September 2006




Notes:
1)
    Type of real estate: G = commercial real estate; W = residential real estate; W/G = mixed use
2)
    Development status: B = under construction; F = completed project; R = renovation of existing asset
3)
    Type of use: B/P = office and professional practice; H = hotel; L = warehousing and logistics; Ha = retail and catering; S = miscellaneous; W = residential.
    Kfz = open parking spaces, underground garage and multi-storey garage (Percentage amounts relate to the revenues receivable.)
4)
    Fittings and equipment: K = air-conditioning (partial or total); La = freight elevator; Pa = passenger elevator; R = escalator.
5)
    Droit d’emphytéose (similar to leasehold) through the real-estate company Deka Régent SA until 21 Feb. 2029.
6)
    Of which 268 m2 is leasehold with a residual term of 80 years.
7)
    Leasehold with a residual term of 55 years.
8)
    4,019 m2 site on Kronenstraße is freehold, sites at Königstraße 10c (496 m2) and Königstraße 12 (1,307 m2) are leasehold.
9)
    Plus part ownership (9,750/100,000) of 5,250 m2 for garages.
10)
    20,960 m2 leasehold with a residual term of 771 years, 80,213 m2 freehold.
11)
    Leasehold in perpetuity under Dutch law.
12)
    Plus 4/10ths. co-ownership of square in front of entrance.
13)
    Site area includes 3,454 m2 fully owned and 3,585 m2 leasehold in perpetuity.
14)
    Partially owned property/share of ownership 98%.
15)
    The property held since April 2002 through the real-estate company Deka Delta Immo Spain, S.L. has been transferred to the fund as a directly held property.
16)
    Partially owned property – 96.37% share of 4,540 m2
17)
    The property held since August 2000 through the real-estate company Despa First Real Estate Spain, S.L. has been transferred to the fund as a directly held property.
18)
    Leasehold until 2235.
19)
    Leasehold until 2097.
20)
    Leasehold until 05 Dec. 2089.
21)
    The real-estate company owns the site (as bare owner) and grants a “droit d’emphytéose” (similar to leasehold) for the building standing on it
    (see Note 5 and directly held properties).
22)
    Company holding an interest in the real-estate company, which is wholly owned by the fund.
23)
    Area calculated for planning purposes and subject to final survey.




42
Schedule of purchases and sales
as of 30 September 2006

Location                       Type of        Development     Type of        Date of       Year of       Site area   Net internal Residential      Fittings and      Market value/
                             real estate 1)     status 2)      use 3)      acquisition/ construction/       m2         area for     accom-         equipment 4)       sustainable
                                                                              sale       conversion                  commercial modation                              rental level
                                                                                                                        use m2        m2
I. Purchases 5)
none

II. Sales 5)
Directly owned properties

Australia
NSW 2000 Sydney                   G              F    B/P: 86%; Ha: 11%;     Sep. 06 1988/2001           1,619       21,286             –             K, Pa       153,530,000 AUD
345 George Street,                                           S: 3%                                                                                                 12,010,695 AUD
“The Landmark“
NSW 2000 Sydney                   G              F    B/P: 83%; Ha: 11%;     Aug. 06       1999          1,778       20,639             –       K, La, Pa, R      209,000,000 AUD
16-32 Bridge Street,                                    L: 3%; Kfz: 3%                                                                                             11,678,315 AUD
“Exchange Centre“

Great Britain
London EC1                        G              F     B/P: 99%; S: 1%       May 06        2000          4,301       24,493             –         K, La, Pa       180,400,000 GBP
1 Bunhill Row 6)                                                                                                                                                   11,493,955 GBP
London EC2                        G              F     B/P: 98%; L: 1%       May 06    1991 /       2,787            17,952             –         K, La, Pa       137,570,000 GBP
55, Bishopsgate                                             Kfz:1%                renoviert 1993-95                                                                 8,710,725 GBP
London EC2                        G              F     B/P: 98%; L: 1%;      Oct. 05       1996           920          5,698            –             K, Pa        42,720,000 GBP
4 Coleman Street                                            Kfz: 1%                                                                                                 2,634,914 GBP
London W1                         G              F          B/P: 100%         Jul. 06      1990           965          3,775            –         K, La, Pa        44,310,000 GBP
10-14 Stratton Street,                                                                                                                                              2,374,261 GBP
“Park House“
London W6                         G              F          B/P: 100%        Mar. 06       1992          5,900       14,370             –         K, La, Pa        46,800,000 GBP
201 Talgarth Road,                                                                                                                                                  3,585,600 GBP
“The Ark“

The Netherlands
3511 BK Utrecht 2003-609          G              F    B/P: 27%; Ha: 53%;     Dec. 05 1987/1999           6,116       20,656             –       K, La, Pa, R       78,000,000 EUR
Lange Viestraat 669,                                         S: 20%                                                                                                 5,247,371 EUR
St. Jacobsstraat 1-109,
“La Vie“ 7)
1101 CN Amsterdam (Southeast) G                  F          B/P: 100%        Sep. 06       2004          2,601       12,196             –             K, Pa        22,140,000 EUR
Herikenbergweg 1-35,                                                                                                                                                1,951,360 EUR
Plaza Arena Block 3,
“Apollo“
1101 BV Amsterdam                 G              F     B/P: 95%; S: 5%       Sep. 06       1999          3,780         7,423            –             K, Pa        13,750,000 EUR
Hullenbergweg 278-308,                                                                                                                                                948,810 EUR
“De Vogelstruys“ 7)
2909 LK Capelle aan den Ijssel    G              F     B/P: 90%; S: 10%      Sep. 06       2000          6,830       13,769             –             K, Pa        26,250,000 EUR
Riviumboulevard 201-223, 202-216,                                                                                                                                   1,987,660 EUR
“Crystal Building“ construction unit A+B
2132 JC Hoofddorp,                G              F     B/P: 95%; S: 5%       Sep. 06       1997          3,870         4,948            –             K, Pa        11,690,000 EUR
Wegalaan 50-72, “Debitel“                                                                                                                                             784,200 EUR
1119 PA Schiphol-Rijk              G             F    B/P: 43%; L: 53%;      Sep. 06       2001         18,788       13,367             –             K, Pa        13,480,000 EUR
Tupolevlaan 101-109,                                        Kfz: 4%                                                                                                 1,334,061 EUR
“Point of View“ (Logistics building)
1119 NX Schiphol-Rijk             G              F    B/P: 90%; Kfz: 10%     Sep. 06       2001          9,859       11,759             –             K, Pa        23,900,000 EUR
Tupolevlaan 2-24,                                                                                                                                                   1,567,680 EUR
“Point of View“ (Office building)

Spain
28100 Alcobendas,                 G              F          B/P: 100%        Dec. 05       2000          7,505       17,038             –         K, La, Pa        67,750,000 EUR
Calle Anabel Segura 14,                                                                                                                                             3,967,140 EUR
“Cedro“ 8)


Notes:
1)
   Type of real estate: G = commercial real estate; W = residential real estate; W/G = mixed use
2)
   Development status: B = under construction; F = completed project; R = renovation of existing asset
3)
   Type of use: B/P = office and professional practice; H = hotel; L/S = warehousing and logistics; Ha = retail and catering; S = miscellaneous; W = residential.
   (Percentage amounts relate to the revenues receivable.)
4)
   Fittings and equipment: K = air-conditioning (partial or total); La = freight elevator; Pa = passenger elevator; R = escalator.
5)
   List of properties transferred into or out of the fund portfolio during financial year 2005/2006
6)
   Formerly 25-32 Chiswell Street.
7)
   Leasehold in perpetuity under Dutch law.
8)
   The property held since February 2002 through the real-estate company Deka Epsilon Immo Spain, S.L. has been transferred to the fund as a directly held property.




44
Schedule of money market instruments, investment shares, securities
                 and hedging instruments as of 30 September 2006




                                                      Purchases           Sales        Portfolio        Quoted price   Percentage
                                                       nominal         nominal         nominal     (on 28 Sep. 2006)      share of
                                                      EUR ’000        EUR ’000        EUR ’000                  EUR    fund assets
                                                        or ‘000         or ‘000         or ‘000
                                                           units           units           units
I. Money market instruments

   Total money market instruments                          0,00            0,00            0,00                0,00          0,00

II. Investment shares
    DEKA-LIQUIDITÄT INVESTMENT-ANTEIL                7.900.000       7.900.000             0,00                0,00          0,00

   Total investment shares                           7.900.000       7.900.000             0,00                0,00          0,00

III. Securities
     1.) Officially quoted securities
     Interest-bearing securities
     1.3500% DEKABANK DT. GIROZENTRALE              500,000.00      270,000.00      230,000.00      229,655,000.00           3.34
                   OEFF.PFDBR.R.1001 V. 05/06
     1.3500% LB HESSEN-THUERINGEN                   160,000.00                –     160,000.00      159,680,000.00           2.33
                   OEFF.PFDBR. V. 05/06
     1.4000% LB BADEN-WUERTTEMBERG                  140,000.00                –     140,000.00      139,860,000.00           2.04
                   PFDBR.S.1054 V. 05/06
     1.4000% LB HESSEN-THUERINGEN                   120,000.00                –     120,000.00      119,700,000.00           1.74
                   OEFF.PFDBR. S.854 V. 05/06
     1.4000% NORD/LB                                130,000.00      100,000.00       30,000.00       29,961,000.00           0.44
                   OEFF.PFDBR.S.1086 V. 05/06
     1.4000% NRW.BANK                                60,000.00                –      60,000.00       59,880,000.00           0.87
                   IHS S.105 V. 05/06
     1.4000% NRW.BANK                               180,000.00                –     180,000.00      179,550,000.00           2.61
                   IHS-MTN V. 05/06
     1.5000% BAYERISCHE LANDESBANK                  190,000.00      140,000.00       50,000.00       49,925,000.00           0.73
                   OEFF.PFDBR.S.0128 V. 05/06
     1.5000% NORD/LB                                160,000.00                –     160,000.00      159,696,000.00           2.33
                   OEFF.PFDBR.S.1089 V. 05/06
     1.2000% NORD/LB                                          –     160,000.00             0.00                0.00          0.00
                   HYP.PFDBR.S.280 V. 04/05
     1.2500% LB BADEN-WUERTTEMBERG                            –     160,000.00             0.00                0.00          0.00
                   OEFF.PFDBR.S.922 V. 04/05
     1.2500% WESTF.LDSCHAFT.BODENKREDITBANK                   –      50,000.00             0.00                0.00          0.00
                   OEFF.PFDBR.S.411 V. 04/05
     1.3000% DEKABANK DT. GIROZENTRALE                        –     600,000.00             0.00                0.00          0.00
                   KOMM.SCHATZANW.S.272 V. 04/05
     1.3000% LB BADEN-WUERTTEMBERG                            –     100,000.00             0.00                0.00          0.00
                   HYP.PFDBR.S.118 V. 04/05
     1.3000% LB BADEN-WUERTTEMBERG                            –     160,000.00             0.00                0.00          0.00
                   OEFF.PFDBR.S.928 V. 04/05
     1.3000% NORD/LB                                          –     160,000.00             0.00                0.00          0.00
                   HYP.PFDBR.S.284 V. 04/05
     1.3000% NORD/LB                                          –     180,000.00             0.00                0.00          0.00
                   OEFF.PFDBR.S.1031 V. 04/05
     1.3000% NRW.BANK                                         –     160,000.00             0.00                0.00          0.00
                   IHS V. 04/05
     1.3000% NRW.BANK                                         –      80,000.00             0.00                0.00          0.00
                   IHS-MTN S.07T V. 04/05
     1.6000% NORD/LB                                 50,000.00       50,000.00             0.00                0.00          0.00
                   OEFF.PFDBR.S.1089 V. 05/06
     1.6000% NRW.BANK                               100,000.00      100,000.00             0.00                0.00          0.00
                   IHS-MTN V. 05/06
     1.6500% LB BADEN-WUERTTEMBERG                  150,000.00      150,000.00             0.00                0.00          0.00
                   OEFF.PFDBR.S.1060 V. 05/06
     1.7500% BAYERISCHE LANDESBANK                  120,000.00      120,000.00             0.00                0.00          0.00
                   OEFF.PFDBR.S.0132 V. 05/06

   Total officially quoted securities              2,060,000.00    2,740,000.00    1,130,000.00    1,127,907,000.00         16.43




                                                                                                                                     45
Schedule of money market instruments, investment shares, securities
and hedging instruments as of 30 September 2006




        2.) Securities traded on an organised market
        Interest-bearing securities
        1.2200% LB HESSEN-THUERINGEN                                     –           155,000.00                0.00                 0.00     0.00
                     IHS S.554 V. 04/05
        1.2500% BAYERISCHE LANDESBANK                                    –            80,000.00                0.00                 0.00     0.00
                     IHS S.0046 V. 04/05
        1.2500% L-BANK BADEN-WUERTT. FOERDERBK                           –           180,000.00                0.00                 0.00     0.00
                     EUR-NOTES S.3039 V. 04/05
        1.3700% LANDESKREDITBK.BAD.WUERTTEMBERG                 80,000.00             80,000.00                0.00                 0.00     0.00
                     IHS R.3046 V. 05/06
        1.3750% BAYERISCHE LANDESBANK                                    –            65,000.00                0.00                 0.00     0.00
                     IHS S.0050 V. 04/05

        Total securities traded on an
        organised market                                        80,000.00            560,000.00                0.00                 0.00     0.00

        3.) New issues
        Trading on an organised market planned
        1.3000% WESTLB AG                                                –           120,000.00                0.00                 0.00     0.00
                   IHS V. 04/05

        Total new issues                                              0.00           120,000.00                0.00                 0.00     0.00

        4.) Unquoted securities

        Total unquoted securities                                     0.00                  0.00               0.00                 0.00     0.00


        Total securities                                     2,140,000.00          3,420,000.00       1,130,000.00     1,127,907,000.00     16.43

        Total securities not approved by either the ECB
        or the German Federal Bank as security for
        financial transactions within the Euro system:                0.00           120,000.00                0.00                 0.00     0.00

     IV. Securities-based loan transactions and sale and repurchase agreements

        Total securities-based loan transactions and sale and repurchase agreements                            0.00                 0.00     0.00

     V. Hedging contracts
        a) Purchases and sales of financial instruments completed during the year under review
        and no longer appearing in the Schedule of Assets:
                                                                  Purchase                Selling
                                                                      price                 price
                                                                       EUR                   EUR
        GBP      1,745.9 mill.                           2,559,949,645.64     2,543,696,611.97
        USD        984.6 mill.                             794,941,799.07       798,891,191.95
        AUD      1,149.5 mill.                             701,252,821.19       702,074,785.06
        JPY     20,160.0 mill.                             140,735,870.20       145,106,096.49
        SEK      7,494.0 mill.                             799,715,054.40       800,068,790.77

        b) Open positions
                                                                                         Selling       Quoted price          Book profit/
                                                                                          price     at closing date*                loss
                                                                                           EUR                  EUR                 EUR
        GBP        256.0 mill.                                                  375,278,527.03      376,419,660.87        -1,141,133.84
        GBP         17.0 mill.                                                   25,080,589.84       24,996,618.10            83,971.74
        USD        318.0 mill.                                                  245,935,309.95      249,130,393.91        -3,195,083.96
        JPY      5,900.0 mill.                                                   40,081,521.74       39,999,845.15            81,676.59
        SEK      2,103.0 mill.                                                  226,415,610.34      227,539,372.86        -1,123,762.52

     *) Quoted price on 29 Sep. 2006




46
Statement of revenue and expenses
for the period from 1 October 2005 to 30 September 2006



                                                                                               EUR                   EUR               EUR
     I.   Revenue
          1. Income from real estate                                                                      325,928,557.69
             (of which: in foreign currency:                                       107,012,581.10)
          2. Income from holdings in real-estate companies                                                 11,801,835.11
             (of which: in foreign currency:                                        11,801,835.11)
          3. Income from investments of liquid assets
             3.1 Interest on credit balances with banks                                                    12,559,779.61
                 (of which: in foreign currencies:                                   1,018,764.37)
             3.2 Income from money market instruments                                                                0.00
                 (of which: in foreign currencies:                                            0.00)
             3.3 Income from investment shares                                                              4,059,877.54
                 (of which: in foreign currencies:                                            0.00)
             3.4 Income from securities                                                                    21,366,343.17
                 (of which: in foreign currencies:                                            0.00)
          4. Interest on own funds (notional development project interest)                                           0.00
          5. Other revenues                                                                                33,522,429.46
             (of which: in foreign currencies                                       11,248,256.13)
          Total revenues                                                                                                     409,238,822.58
     II. Expenses
          1. Management costs
             1.1 Operating costs                                                                           21,381,181.11
                 (of which: in foreign currencies:                                  11,071,721.52)
             1.2 Maintenance                                                                               10,674,666.50
                 (of which: in foreign currencies:                                   4.154.733,57)
             1.3 Facility management                                                                        6,780,365.46
                 (of which: in foreign currencies:                                            0.00)
             1.4 Miscellaneous expenses                                                                    16,092,500.60
                 (of which: in foreign currencies:                                   8,653,852.74)
          2. Ground rents, life and terminable annuities                                                    2,988,713.74
             (of which: in foreign currencies:                                         850,344.12)
          3. Interest charges                                                                              50,743,432.87
             (of which: in foreign currencies:                                      32,285,450.94)
          4. Foreign taxation                                                                              18,791,639.09
          5. Management of fund assets
             5.1 Remuneration of fund management                                                           45,318,207.17
             5.2 Payment to custodian bank                                                                  3,776,517.26
             5.3 Experts’ fees                                                                                422,335.62
             5.4 Miscellaneous expenses as defined in Section 14, Paragraph 4 of Special Contract Terms       458,524.68
             -of which issue premiums/redemption discounts for purchase/sale of investment
             shares charged by either the management company or one of its affiliates          0.00
             -of which management remuneration for investment shares charged by
             either the management company or one of its affiliates                                                  0.00
     III. Total expenses                                                                                                     177,428,084.10
          Earnings adjustment                                                                                         +/-    -18,246,619.95
          Net revenue from ordinary activities                                                                               213,564,118.53
          Total expense ratio (TER)
          Total expense ratio (see page 51)                                                                                          0.66%
          Performance-related remuneration                                                                                           0.00%
          Statement on expenses pursuant to Section 41, Paragraphs 5 and 6 of the German Investments Act:
          Issue premiums and redemption discounts charged to the fund for acquisition and redemption of investment shares              0.00
          Management remuneration for investment shares held by the fund                                                               0.00
          “The management company receives no payments out of the remuneration or refunds of expenses paid by the fund
          to the custodian bank and other third parties.”
          “The management company grants so-called ongoing agents’ commissions of the type which are usually paid annually
          to intermediaries such as banks.”




48
                                                     Statement of revenue and expenses
                               for the period from 1 October 2005 to 30 September 2006



Calculation of distribution                                               Gross                    Taxes on
                                                                          profit                     profits                Total   per unit
                                                                        on sales                      (EUR)                (EUR)      (EUR)
                                                                          (EUR)
Net revenue from ordinary activities                                                                               213,564,118.53      1.51
Profits realised from
 - real estate                                                  237,977,146.32               -33,303,657.04        204,673,489.28      1.44
 - interests in real-estate companies                                        0.00                           0.00             0.00      0.00
 - investment of liquid funds 1)                                 49,715,161.42                              0.00    49,715,161.42      0.35
Profit brought forward from last year        2)
                                                                                                                    34,055,723.14      0.24
Retention of surpluses in accordance with Section 15,
Paragraph 2 of Special Contract Terms                                                                                2,800,000.00      0.02
Available for distribution                                                                                         499,208,492.37      3.52
Allocated for reinvestment in accordance with Section 15,
Paragraph 5 of Special Contract Terms                                                                               31,579,379.38      0.22
Carried forward to new account                                                                                        870,545.54       0.01
Total distribution                                                                                                 466,758,567.45      3.29
Units in circulation                                                                                                 141,871,905


1)
     This item includes reinvested profits from currency futures contracts totalling EUR 31,579,379.38.
2)
     This item includes a deduction for the share of the earnings adjustment totalling EUR 10,370,055.97.




                                                                                                                                               49
Notes to Statement of Revenue and Expenses




                      Revenue from real estate fell by EUR 20.2       Management costs of EUR 54.9 million
                      million from last year’s EUR 346.1 million      included operating costs of EUR 21.4 mil-
                      to EUR 325.9 million. The foreign currency      lion, maintenance costs of EUR 10.6 mil-
                      share of EUR 107.0 million included in this     lion, real-estate management costs of EUR
                      figure contains the equivalent of EUR 68.8      6.8 million and miscellaneous expenses
                      million from real estate in Great Britain,      totalling EUR 16.1 million.
                      EUR 23.0 million from real estate in the
                      USA, EUR 13.4 million from real estate in       The operating costs of EUR 21.4 million
                      Australia and EUR 1.8 million from real         are items which could not be charged on
                      estate in Poland, foreign currencies being      to the tenants. Maintenance costs of EUR
                      defined for this purpose as all non-Euro        10.6 million were incurred mainly for the
                      positions.                                      purpose of preserving the real estate’s rev-
                                                                      enue potential. Real-estate management
                      Revenue from holdings in real-estate com-       costs of EUR 6.8 million were mainly facili-
                      panies totals EUR 11.8 million and results      ty management expenses incurred by the
                      from liquidity distributions from the Swedish   management company in accordance with
                      and Japanese real-estate companies.             Section 14, paragraph 4 of the Special
                                                                      Contract Terms. The item ‘Miscellaneous
                      Revenue from investments of liquid assets       expenses’ totalling EUR 16.1 million includes
                      totalling EUR 38.0 million includes EUR         EUR 4.1 million expenses incurred for
                      10.5 million interest income on call-money      acquisition of new tenants, EUR 2.0 mil-
                      and term deposits, EUR 2.0 million bank         lion for professional consultants’ fees, EUR
                      interest on current accounts, income of         2.1 million for fees to external real estate
                      EUR 21.4 million from fixed-interest securi-    managers, EUR 1.1 million for rent-free
                      ties and of EUR 4.1 million from interest       periods attributable to real estate sales,
                      on investment shares. The main items in         EUR 0.3 million for expenses from prior
                      the foreign currency share of bank interest     accounting periods, EUR 0.8 million for
                      are EUR 1.0 million are EUR 0.5 million         input tax, EUR 4.7 million for write-down
                      from credit balances in British pounds, EUR     or write-off of rental claims and EUR 1.0
                      0.3 million from credit balances in Aus-        million from adjustments of net income
                      tralian dollars and EUR 0.1 million from        for the year to average exchange rate val-
                      credit balances in US dollars.                  uation.

                      ‘Other revenues’ of EUR 33.5 million come       The foreign currency share of EUR 11.1
                      mainly from interest income of EUR 14.8         million included in operating costs con-
                      million on shareholders’ loans, write-back      tains the equivalent of EUR 7.8 million
                      of EUR 1.5 million from accruals, write-back    denominated in US dollars, EUR 2.3 mil-
                      of EUR 6.1 million on value adjustments of      lion in Australian dollars and EUR 1.0 mil-
                      assets, write-back of EUR 4.6 million from      lion in British pounds. The foreign currency
                      tax accruals, EUR 5.3 million from refund       share of the maintenance costs totals EUR
                      of taxes on profit, EUR 0.4 million from        4.2 million and includes EUR 1.8 million
                      interest on an input tax refund claim in        denominated in US dollars and EUR 2.4
                      Italy, contractually agreed interest of EUR     million in Australian dollars. The foreign
                      0.2 million on grants receivable for con-       currency share of the miscellaneous
                      struction work, EUR 0.2 million from adjust-    expenses totals EUR 8.7 million and
                      ments of net income for the year to aver-       includes EUR 1.8 million denominated in
                      age exchange rate valuation and EUR 0.4         US dollars, EUR 4.3 million in British
                      million from default interest and other         pounds, EUR 2.4 million in Australian dol-
                      interest income. The foreign currency share     lars, EUR 0.1 million in Polish zloty and
                      of the item ‘Other revenues’ equivalent to      EUR 0.1 million in Swedish crowns.
                      EUR 11.2 million consists of EUR 5.6 mil-
                      lion denominated in Swedish crowns, EUR         The item ‘Ground rents, life and terminable
                      3.0 million in British pounds, EUR 1.9 mil-     annuities’ totalling EUR 3.0 million relates
                      lion in US dollars and EUR 0.7 million in       solely to ground rents for real estate held
                      Australian dollars.                             in the portfolio. The foreign item included



50
in this amount is ground rent of EUR 0.9        The earnings adjustment of minus EUR
million for a property in Great Britain.        18.2 million relates to the proportion of
                                                net earnings (from ordinary activities for
Interest charges of EUR 50.7 million relate     the year) attributable to fund units sold
mainly to the service of third-party loans      and redeemed during the period under
taken up to finance real estate in Great        review. The income adjustments of minus
Britain (EUR 23.2 million), Belgium (EUR        EUR 5.1 million for profits from sale of
1.1 million), Spain (EUR 2.7 million), France   investments of liquid resources and of
(EUR 11.5 million), Italy (EUR 3.1 million),    minus EUR 11.9 million from disposal of
USA (EUR 5.8 million) and Australia (EUR        real estate are allocated directly to these
3.3 million).                                   items.

Foreign taxation totalled EUR 18.8 million      The total expense ratio (TER) of 0.66% is
and relates to taxes on income generated        the percentage ratio of total expenses to
in Belgium, Spain, France, Great Britain,       the fund’s average assets. The TER includes
Italy, Eire, Poland, Australia and the USA,     the following cost items: remuneration
and to withholding tax deducted from dis-       paid to the fund’s management, remuner-
tributions from Japanese real-estate com-       ation paid to the custodian bank, experts’
panies.                                         fees and miscellaneous expenses as
                                                defined in Clause 14 of the Special Con-
The cost of management of fund assets           tract Terms. All of these items are listed in
totalled EUR 50.0 million and includes          the Statement of Revenue and Expenses.
fund management fees of EUR 45.3 mil-
lion in accordance with Section 14, para-       Of the net earnings of EUR 213.6 million
graph 1 of the Special Contract Terms.          from ordinary activities plus profits of EUR
The management company received EUR             204.7 million on disposal of real estate,
11.2 million in accordance with Section 14,     from income of EUR 49.7 million from sale
paragraph 2 of the Special Contract Terms       of investments of liquid funds, plus the
for fees connected with purchase/sale           balance of EUR 34.0 million (including the
transactions and construction work, which       relevant earnings adjustment) brought for-
were allocated to cost of acquisition or        ward from last year, an amount of EUR 2.8
construction and consequently not charged       million has been retained for decrease in
to administrative expenses. The item also       real-estate value equivalent to building
includes payments of EUR 3.8 million to         depreciation. EUR 31.6 million has been
the custodian bank in accordance with           allocated for reinvestment and EUR 0.9
Section 14, paragraph 3 of the Special          million has been carried forward to new
Contract Terms, EUR 0.4 million in fees         account. EUR 466.7 million are being dis-
paid to the independent expert committee        tributed. The distribution is equivalent to
for legally required, ongoing annual valua-     EUR 3.29 per unit on the 141,871,905
tion of the fund’s real-estate assets and       units in circulation.
EUR 0.5 million for miscellaneous expens-
es, which include audit fees, the cost of
printing and publishing the annual report
and bank charges.




                            Frankfurt am Main, December 2006
                            Deka Immobilien Investment GmbH
                                   General Management

       Reinhardt Gennies (Chairman)                       Andreas C. Steyer
              Johannes Haug                          Dr. Walter J. Helbach (Deputy)


                                                                                                51
                                                                                                 Auditor’s opinion




Pursuant to Section 44, Paragraph 5 of the      planning the actions to be taken during
German Investments Act (InvG), we have          the audit, due consideration is given to
examined the annual report of Deka-Immo-        available information on the management
bilienEuropa for the financial year from 1      of the fund and to the possibility that errors
October 2005 to 30 September 2006. The          may have been committed. The efficacy of
management company's appointed legal            internal accounting control systems, the
representatives are responsible for prepar-     vouchers supporting the data contained in
ing the annual report in accordance with        the annual report are verified, mainly on a
the provisions of the German Investments        test basis. The audit includes assessment
Act (InvG). Our task is to perform an audit     of the accounting principles used in the
enabling us to give an opinion on the           preparation of the annual report and of the
annual report based on the results of this      material assumptions made by the man-
audit.                                          agement of the management company.
                                                We believe that the audit performed by
Our audit was performed pursuant to the         us constitutes an adequate basis for our
provisions of Section 44, Paragraph 5 of        assessment. Our audit revealed no items
the German Investments Act (InvG) and in        justifying any qualification.
accordance with the standards laid down
by the German Institute of Auditors (IDW).      In our opinion, based on the results
These stipulate that an audit must be           obtained during our audit, the annual
planned and performed in such a way that        report complies with legal requirements.
it will with a sufficient degree of certainty
reveal any material inaccuracies and viola-
tions contained in the annual report. In        Frankfurt am Main, 15 December 2006



                                PricewaterhouseCoopers
                                    Aktiengesellschaft
                             Wirtschaftsprüfungsgesellschaft




                   (Sahm)                                   (ppa. Strücker)
                   Auditor                                      Auditor




                                                                                                                 53
Supplementary information on real estate held by the fund




                                                                                                                                                         Currency
Location                         Letting     Tenancy     Rental income   Sustainable        Market value        Loan     Shareholders’      Share
                                  status   agreements      over last    rental income       (as estimated     volume as loans as at      capital as at
                                   (%)     expiring in    12 months 1) (as estimated in       in expert       at 30 Sep. 30 Sep. 2006    30 Sep. 2006
                                             next 12                   expert opinion) as   opinion) as at      2006
                                           months (%)                  at 30 Sep. 2006 2)   30 Sep. 2006 3)
I. Directly owned properties in countries belonging to the Euro currency area
Belgium
1040 Brussels                     100.0        0.0          1,401,241       1,196,220        21,000,000               0            –               –     EUR
Avenue d' Auderghem 2-14
1200 Brussels                      27.6        81.4           651,331       1,933,150        24,460,000       17,600,440           –               –     EUR
Avenue Marcel Thiry 79/81
1000 Brussels                      93.0        12.9         1,657,447       1,715,512        25,540,000               0            –               –     EUR
Boulevard du Régent 43-44 /
Rue Ducale 67-71
1000 Brussels                      81.9        0.0            609,199       1,238,265        18,400,000               0            –               –     EUR
Boulevard du Régent 45-46 /
Rue Ducale 83
1000 Brussels                      36.1        0.0            125,923       1,142,175       15,286,439 4)     10,000,000           –               –     EUR
Boulevard du Régent 47-48
1040 Brussels                      95.9        58.9           966,821         967,130        15,070,000               0            –               –     EUR
Rue Guimard 7-7a

Germany
14059 Berlin                      100.0        0.0       Not disclosed        459,689         8,300,000               0            –               –     EUR
Am Bahnhof Westend 9 /
Sophie-Charlotten-Straße 21
14059 Berlin                      100.0        0.0          1,213,928       1,180,977        19,770,000               0            –               –     EUR
Am Bahnhof Westend 10+11
10117 Berlin                       70.5        0.2          1,947,295       3,676,293        64,320,000               0            –               –     EUR
Friedrichstraße 50-55 ,
„Checkpoint Charlie“
10117 Berlin                       2.1         73.2            26,634       1,488,452        26,930,000               0            –               –     EUR
Reinhardtstraße 52 ,
„Kronprinzen Karree“
10623 Berlin                      100.0        17.9         3,578,438       3,835,109        65,740,000               0            –               –     EUR
Straße des 17. Juni 106-108,
„TiergartenTower“
44787 Bochum                       99.6        3.7          2,976,275       3,159,859        47,460,000               0            –               –     EUR
Kortumstraße 85 /
Bongardstraße, „City Point“
01129 Dresden                      92.2        0.0          1,521,573       1,443,835        20,150,000               0            –               –     EUR
Riesaer Straße 3-5
40213 Düsseldorf                   79.1        0.1          7,005,278       8,791,864       168,400,000               0            –               –     EUR
Benrather Straße 18-20,
„Benrather Karree“
40235 Düsseldorf                   99.3        0.9            583,521         503,040         7,830,000               0            –               –     EUR
Cranachstraße 35
40547 Düsseldorf                   83.3        1.3          2,117,505       2,635,771        41,370,000               0            –               –     EUR
Fritz-Vomfelde-Straße 34-38,
„Neues Zentrum Seestern“
40547 Düsseldorf                   87.9        7.4          1,617,935       1,778,178        26,850,000               0            –               –     EUR
Hansaallee 249,
„Forum Oberkassel“
40227 Düsseldorf                  100.0        0.0       Not disclosed      5,483,559        95,600,000               0            –               –     EUR
 Moskauer Straße 19
45127 Essen                       100.0        0.0          2,341,823       2,300,210        40,390,000               0            –               –     EUR
Markt 5-6 / Kennedyplatz 9-11
60547 Frankfurt                   100.0        0.0          3,546,808       3,239,407        39,380,000               0            –               –     EUR
Cargo City Süd
„AIR CARGO Center“
60439 Frankfurt                   100.0        0.0       Not disclosed     13,312,416       209,080,000               0            –               –     EUR
Lurgiallee 5, „Lurgi-Haus“
60327 Frankfurt                   100.0        0.0          9,941,194       8,567,560       170,420,000               0            –               –     EUR
Mainzer Landstraße 178-190,
„Asset Management Center“
60303 Frankfurt                   100.0        0.0            613,974         495,396         9,055,000               0            –               –     EUR
Reuterweg 49
60325 Frankfurt                   100.0        0.0       Not disclosed      1,745,992        31,840,000               0            –               –     EUR
Savignystraße 14-16 /
Westendstraße 11-13, „Sofitel“




54
                             Supplementary information on real estate held by the fund




                                                                                                                                                            Currency
Location                           Letting     Tenancy     Rental income   Sustainable        Market value         Loan     Shareholders’      Share
                                    status   agreements      over last    rental income       (as estimated      volume as loans as at      capital as at
                                     (%)     expiring in    12 months 1) (as estimated in       in expert        at 30 Sep. 30 Sep. 2006    30 Sep. 2006
                                               next 12                   expert opinion) as   opinion) as at       2006
                                             months (%)                  at 30 Sep. 2006 2)   30 Sep. 2006 3)
20097 Hamburg                        25.2         0.0          231,668         617,958          7,810,000                0            –               –     EUR
Wandalenweg 30
85737 Ismaning                       88.6        15.1         2,794,414       2,524,482        41,560,000                0            –               –     EUR
Osterfeldstraße 82 /
Adalperostraße 31 / Steinheilstraße 10,
„ARTICOM“, Haus C, D und E“
34117 Kassel                         53.7        9.0            357,675         533,787         6,240,000                0            –               –     EUR
Königsplatz 55 / Wolfsschlucht 24 a,
„Henschelhaus“
24103 Kiel                          100.0        0.0          1,507,579       1,451,542        25,590,000                0            –               –     EUR
Holstenstraße 46, 48-50
55116 Mainz                         100.0        0.0       Not disclosed      1,199,130        21,150,000                0            –               –     EUR
Markt 19-29
80339 Munich                         62.9        5.1          3,582,407       4,646,308        77,990,000                0            –               –     EUR
Barthstraße 22-24, „RONDO“
81829 Munich                         55.3        5.2          1,684,796       3,319,601        52,690,000                0            –               –     EUR
Graf-zu-Castell-Straße 1 /
Josef-Wild-Straße 20,
„Messe-Campus Riem“
81541 Munich                         7.1         0.0       Not disclosed      3,530,010        45,300,000                0            –               –     EUR
Hohenwaldeckstraße 1 /
St.-Martin-Straße 60
80807 Munich                         68.0        10.9         1,138,433       1,759,260        27,820,000                0            –               –     EUR
Wilhelm-Wagenfeld-Straße 24,
„carrea“
90402 Nuremberg                     100.0        0.0          4,082,974       4,040,355        74,510,000                0            –               –     EUR
Karolinenstraße 32-36,
„Kaufhaus Breuninger“
63067 Offenbach                     100.0        0.0          4,791,974       4,474,166        75,940,000                0            –               –     EUR
Kaiserleistraße 10, „Mainoffice“
70173 Stuttgart                      97.5        3.0          8,203,793       8,314,681       121,674,000                0            –               –     EUR
Königstraße 10c, 12 /
Kronenstraße 3, „ ´s ZENTRUM“
70173 Stuttgart                      89.3        0.0          1,238,727       1,150,390        17,200,000                0            –               –     EUR
Rotebühlstraße 98-100 /
Reuchlinstraße 27-29

France
75009 Paris                         100.0        0.0         14,590,897      13,846,643       255,200,000        88,999,736           –               –     EUR
64-76, Rue de la Victoire / 53,
Rue de Châteaudun,
„Opéra-Victoire“
75008 Paris                       100.0          97.3         1,519,263       1,398,630        25,350,000        12,195,921           –               –     EUR
120, Rue du Faubourg Saint Honoré
75002 Paris                          97.7        0.0         14,903,938      19,276,660       346,540,000       172,267,389           –               –     EUR
16/18, Rue du Quatre Septembre /
10-18, Rue de Choiseul /
7-21 Rue de Gramont,
„Le Centorial“

Eire
Cork,                                96.5        0.9         13,079,688      14,302,555       230,260,000                0            –               –     EUR
„Mahon Point Shopping Centre“

Italy
20124 Milan,                        100.0        0.0       Not disclosed      6,154,335        96,200,000        88,559,000           –               –     EUR
Via Giovanni Battista Pirelli 35

The Netherlands
1101 CM Amsterdam (Southeast)        0.0         0.0       Not disclosed      1,940,160        25,800,000                0            –               –     EUR
Herikenbergweg 74-108,
Plaza Arena Block 1,
„Jupiter“
1101 BV Amsterdam                   100.0        0.0       Not disclosed        893,820        13,550,000                0            –               –     EUR
Hullenbergweg 250,
„Graydon“
1101 HE Amsterdam                   100.0        0.0       Not disclosed      4,792,125        85,500,000                0            –               –     EUR
De Entree 99-197 ,
„Oval Tower“




                                                                                                                                                                 55
Supplementary information on real estate held by the fund




                                                                                                                                                                  Currency
Location                            Letting          Tenancy     Rental income   Sustainable        Market value        Loan     Shareholders’      Share
                                     status        agreements      over last    rental income       (as estimated     volume as loans as at      capital as at
                                      (%)          expiring in    12 months 1) (as estimated in       in expert       at 30 Sep. 30 Sep. 2006    30 Sep. 2006
                                                     next 12                   expert opinion) as   opinion) as at      2006
                                                   months (%)                  at 30 Sep. 2006 2)   30 Sep. 2006 3)
2516 AK The Hague                   100.0               0.0      Not disclosed     5,321,822         83,030,000               0            –               –      EUR
Regulusweg / Zonweg / Wegastraat,
„Haagse Veste IV“, construction unit A, B, C, E, G, H
3511 SX Utrecht                   100.0                 0.0         3,685,135        3,532,720       52,230,000               0            –               –      EUR
Daalseplein 1-101, „Daelse Kwint“

Austria
1070 Vienna                          100.0              0.0         1,409,399        1,298,925       24,580,000               0            –               –      EUR
Mariahilfer Straße 116, „Die 116“
1070 Vienna                           92.1              29.0        6,849,965        8,127,621      126,600,000               0            –               –      EUR
Mariahilfer Straße 42-48,
„Kaufhaus Gerngross“
1190 Vienna                          100.0              5.8         3,661,583        3,444,676       61,420,000               0            –               –      EUR
Nußdorfer Lände 23-27 /
Mooslackengasse,
„Business Center Muthgasse“
1020 Vienna                          100.0              28.4        2,749,515        2,644,501       45,370,000               0            –               –      EUR
Obere Donaustraße 23-27,
„Siemens-Nixdorfhaus“
1020 Vienna                     100.0                   0.0      Not disclosed       3,392,115       63,190,000               0            –               –      EUR
Obere Donaustraße 29, „Mobilkomhaus“
1010 Vienna                        100.0                0.0         5,471,808        5,639,274      104,560,000               0            –               –      EUR
Opernring 13-15, „Hotel Le Méridien“

Spain
08002 Barcelona                      100.0              0.0      Not disclosed       6,825,245      111,707,353               0            –               –      EUR
La Rambla 111, „Le MERIDIEN“
08028 Barcelona,                     100.0              5.5         7,957,558        7,513,155      133,740,000       60,150,000           –               –      EUR
Plaza de Catalunya 2-3, „El Triangle“
28230 Las Rozas,                    100.0               0.0      Not disclosed       1,716,514       26,920,000       14,049,912           –               –      EUR
Gabriel Garcia Márques 2,
Las Rozas Busin. Park, „Foster Wheeler Building“

II. Directly owned properties in countries outside the Euro currency area
Great Britain
Birmingham B3 2QD               100.0                   48.7        3,548,289        4,011,770       61,310,000     40,000,000             –               –      GBP
2-6 Colmore Row, „Colmore Gate“                                  (= 5,231,227)    (= 5,914,535)   (= 90,389,067) (= 58,971,826)                                  (EUR)
London EC4                         100.0                0.0      Not disclosed      13,000,982     220,240,000 159,000,000                 –               –      GBP
1 Rose Street / Newgate Street /                                                 (= 19,167,291) (= 324,698,875)(= 234,413,009)                                   (EUR)
Paternoster Square, „Christ Church Court“
London W1                            100.0              0.8         4,578,557        4,866,360      87,110,000                0            –               –      GBP
331-337 Oxford Street ,                                          (= 6,750,147)    (= 7,174,453) (= 128,425,895)            (= 0)                                 (EUR)
„333 Oxford Street“
London W1                            100.0              0.0        2,970,957         2,665,196       36,630,000               0            –               –      GBP
9 South Street                                                   (=4,380,069)     (= 3,929,287)   (= 54,003,450)           (= 0)                                 (EUR)
London SW3                           100.0              0.0         5,437,050        4,892,546      71,800,000                0            –               –      GBP
60 Sloane Avenue,                                                (= 8,015,819)    (= 7,213,059) (= 105,854,428)            (= 0)                                 (EUR)
„The Leo Burnett Building“

Poland 5)
PL-01-211 Warsaw,                    100.0              0.0      Not disclosed        7,945,599     108,048,194                0           –               –       PLN
7/9 ul. Gieldowa, „Victoria Building“                                             (= 1,992,132)   (= 27,090,000)            (=0)                                 (EUR)

USA
Downers Grove, IL 60515               88.1              0.0         4,706,780        4,585,015       55,550,000     24,500,000             –               –      USD
3025 Highland Parkway,                                           (= 3,714,725)    (= 3,618,625)   (= 43,841,649) (= 19,336,101)                                  (EUR)
„Highland Landmark II“
San Francisco, CA 94108               97.2              0.7         9,429,541       11,976,118       95,240,000     48,500,000             –               –      USD
600 California Street                                            (= 7,442,064)    (= 9,451,895)   (= 75,166,133) (= 38,277,587)                                  (EUR)
San Francisco, CA 94108              100.0              0.0      Not disclosed        1,698,700       28,190,000   11,500,000              –               –      USD
212 One Stockton Street,                                                          (= 1,340,663)   (= 22,248,354) (= 9,076,129)                                   (EUR)
„Sephora Building“
San Francisco, CA 94108               99.7              9.5         4,184,948        3,841,885       51,640,000     19,500,000             –               –      USD
One Union Square,                                                (= 3,302,881)    (= 3,032,126)   (= 40,755,765) (= 15,389,958)                                  (EUR)
„One Union Square“
Washington, D.C. 20005                87.7              2.1         8,841,848       10,784,575       95,880,000     27,500,000             –               –      USD
607 14th Street / 1333 F Street,                                 (= 6,978,240)    (= 8,511,495)   (= 75,671,239) (= 21,703,787)                                  (EUR)
„The Westory“



56
                            Supplementary information on real estate held by the fund




                                                                                                                                                                           Currency
Location                           Letting          Tenancy       Rental income   Sustainable        Market value          Loan     Shareholders’         Share
                                    status        agreements        over last    rental income       (as estimated       volume as loans as at         capital as at
                                     (%)          expiring in      12 months 1) (as estimated in       in expert         at 30 Sep. 30 Sep. 2006       30 Sep. 2006
                                                    next 12                     expert opinion) as   opinion) as at        2006
                                                  months (%)                    at 30 Sep. 2006 2)   30 Sep. 2006 3)
III. Properties held through real-estate companies in countries belonging to the Euro currency area
Name and legal form                                           Domicile/Registered office                        Percentage interest held             Date of acquisition

Belgium

Deka Régent SA 6)                         Rond-point Robert Schuman 6 boîte 5, 1040 Brussels, Belgium                       100.0%                         Jul. 04
1000 Brussels                         –                 –                      –               –       3,363,561   8)
                                                                                                                                   0            0        4,306,472         EUR
Boulevard du Régent 47-48

La City SA                                Rond-point Robert Schuman 6 boîte 5, 1040 Brussels, Belgium                       100.0%                        Oct. 00
1210 Brussels                       100.0              0.0         Not disclosed       7,322,935     117,050,000         57,410,500      8,296,936      76,338,913         EUR
55, Rue du Progrès , „Boréal“

Germany
Ettlinger Tor Karlsruhe KG                                   Heegbarg 30, 22391 Hamburg                                     80.0%                         Aug. 02
76133 Karlsruhe,                      99.4             0.1        13,762,069       13,539,868 9)  201,820,000 9)        95,500,000 9)           0       92,248,547         EUR
Rondellplatz, Karl-Friedrich-Straße,
Kriegsstraße, Erbprinzenstraße,
„Handels- und Dienstleistungszentrum Ettlinger Tor“
Interest held through 7): Deka Immobilien Beta Karlsruhe GmbH, Mainzer Landstraße 16, 60325 Frankfurt

France
Deka Central Park SARL                              59, Avenue Victor Hugo, 75116 Paris, France                             100.0%                        Aug. 01
92130 Issy-les-Moulineaux            100.0            31.7           5,777,080         5,207,664       82,850,000                  0    41,425,000      53,978,618         EUR
9/15, Rue Maurice Mallet u. 3/5,
Square Lois Blériot , „Central Park“
MT JEZERCE SAS                                      59, Avenue Victor Hugo, 75116 Paris, France                             100.0%                        Aug. 99
92300 Levallois-Perret            100.0                0.0         Not disclosed       4,000,067       63,560,000         7,661,949     30,000,000      27,528,452         EUR
132, Rue de Villiers, „Le Magnum“
Deka Moissy-Cramayel SARL                           59, Avenue Victor Hugo, 75116 Paris, France                             100.0%                        Dec. 01
77550 Moissy-Cramayel               100.0              0.0         Not disclosed       1,390,431       16,950,000                  0     2,949,760      21,392,582         EUR
104, Rue Denis Papin , „Z.A.C. d' Arvigny“
Deka 54 Boulevard Haussmann SARL             10/12, Avenue de l’Arche, 92419 Courbevoie Cedex, France                       100.0%                         Jan. 02
75009 Paris                          99.7             30.3          11,511,309         9,891,900     188,170,000                   0    85,000,000    167,147,668          EUR
54, Boulevard Haussmann
21 Rue de la Ville L'Evêque SARL             10/12, Avenue de l’Arche, 92419 Courbevoie Cedex, France                       100.0%                        Jun. 00
75008 Paris                         100.0              0.0         Not disclosed       1,739,080       30,310,000                  0     6,722,959      28,141,084         EUR
21/23, Rue de la Ville l' Evêque
Général Foy SARL                             10/12, Avenue de l’Arche, 92419 Courbevoie Cedex, France                       100.0%                        Jun. 00
75008 Paris                           –                 –          Not disclosed       4,296,072       54,972,707        15,244,902     15,226,910      24,673,070         EUR
6/8/10/12, Rue du Général Foy

Luxemburg

Despa First Real Estate Lux S.A.             121, Avenue de la Faïenverie, 1511 Luxemburg, Luxemburg                        100.0%                        Jun. 00
1855 Luxemburg                    100.0                0.0         Not disclosed       5,087,290       82,000,000        31,257,173     25,066,513      37,811,216         EUR
38, Avenue John F. Kennedy, „DekaBank-Gebäude“

IV. Properties held through real-estate companies in countries outside the Euro currency area
Japan
Deka Shinsen Place Real Estate TMK                         16-5, Minami-Ohi 3-chome,                                        100.0%                        Mar. 02
                                                      Shinagawa-ku, Tokyo 140-0013, Japan
Tokyo 150-0045, 9-1 Shinsencho       100.0            100.0         Not disclosed     201,194,500     3,820,470,000 2,310,000,000                0    1,868,713,113      JPY
(Shibuya-ku), „Shinsen Place Building“                                              (= 1,344,962)   (= 25,539,409) (= 15,442,088)            (= 0)   (= 12,492,135)    (EUR)
Deka Tokyo Real Estate TMK             16-5, Minami-Ohi 3-chome, Shinagawa-ku, Tokyo 140-0013, Japan                        100.0%                         Jul. 02
Tokyo 3-1-30, Jingumae,            90.9               86.9         389,220,674       404,592,480    8,470,050,000 4,400,000,000                 0 4,084,640,850          JPY
(Shibuya-ku), „Concept Aoyama Building“                           (= 2,601,896)     (= 2,704,655)   (= 56,621,323) (= 29,413,501)            (= 0) (= 27,305,361)      (EUR)

Sweden
Edsviken Fastighets KB                                Vasagatan 7, 11181 Stockholm, Sweden                                  100.0%                         Jul. 04
17072 Solna                            99.6            18.5         24,348,747      28,913,610        412,600,000                  0 204,000,000      231,475,819        SEK
Björnstigen 85-87, „Skogskarlen 2“                                (= 2,627,159)   (= 3,119,695)     (= 44,518,342)              (= 0)(= 22,011,008) (= 24,975,569)     (EUR)
Interest held through 7): Edsviken Holding AB, Vasagatan 7, 111 81 Stockholm, Schweden




                                                                                                                                                                                57
Supplementary information on real estate held by the fund




                                                                                                                                                                        Currency
Location                          Letting          Tenancy       Rental income   Sustainable          Market value        Loan     Shareholders’         Share
                                   status        agreements        over last    rental income         (as estimated     volume as loans as at         capital as at
                                    (%)          expiring in      12 months 1) (as estimated in         in expert       at 30 Sep. 30 Sep. 2006       30 Sep. 2006
                                                   next 12                     expert opinion) as     opinion) as at      2006
                                                 months (%)                    at 30 Sep. 2006 2)     30 Sep. 2006 3)
Deka City Cronan Fastighets KB                       Vasagatan 7, 11181 Stockholm, Sweden                                 100.0%                          Jun. 03
11144 Stockholm                        99.8            0.4         156,674,260    148,243,448        2,588,510,000                0 1,200,000,000 1,411,205,587          SEK
Grävlingen 12 / Jacobsbergsgantan 21-33 /                        (=16,904,698)   (= 15,995,038)     (= 279,292,713)            (= 0)(= 129,476,516) (= 152,264,985)    (EUR)
Regeringsgatan 57-61 / Mäster Samuelsgatan 28-36 /
Malmskillnadsgatan 42-44, „City Cronan“
Interest held through 7): Deka City Cronan AB, Vasagatan 7, 11181 Stockholm, Sweden

Hungary 5)
Despa Trust Kft,                               Bajcsy-Zsilinszky út 42-46, 1054 Budapest, Hungary                         100.0%                          Sep. 99
1054 Budapest                         84.6            0.0          452,730,000      574,304,002     7,647,398,036                0 3,661,441,557 6,413,887,036          HUF
Bajcsy-Zsilinszky út 42-46, „Atrinova“                            (= 1,655,247)    (= 2,099,739)    (= 27,960,000)            (= 0) (= 13,386,763) (= 23,450,104)      (EUR)
Central Business Center Rt.                        Horvát utca 14-24, 1027 Budapest, Ungarn                               100.0%                          Apr. 99
1027 Budapest                        63.3             40.9          248,276,000      455,583,071      5,732,813,406 1,087,017,000 1,314,538,403  4,781,191,406           HUF
Horvát utca 14-24,                                                  (= 907,733)    (= 1,665,678)    (= 20,960,000) (= 3,974,292) (= 4,806,144) (= 17,480,731)          (EUR)
„Central Business Center“

USA
Deka First Real Estate USA LP                 1185 Avenue of the Americas, New York 10036, USA                            100.0%                          Mar. 00
New York, NY 10019                 93.8             59.4         22,898,519      23,471,890     199,450,000   78,000,000                        0     139,617,202      USD
1330 Avenue of the Americas                                  (= 18,072,166) (= 18,524,687) (= 157,411,646) (= 61,559,831)                    (= 0) (= 110,189,890)     EUR
Interest held through : Deka 1330 Corporation, 1185 Avenue of the Americas, New York, NY 10036, USA
                     7)




Notes
1)
   Not disclosed for properties occupied by less than 2 tenants.
2)
   For properties still under construction the sustainable rental income used for planning purposes.
3)
   Market value of properties under construction stated as capitalised amount of construction work to date = market value of property at balance sheet closing date.
4)
   Market value does not include site value.
5)
   Tenancy agreements and market value are valued in EUR .
6)
   The real-estate company owns only the site. The building on the site is a directly owned property (see under ‘Directly owned properties’).
7)
   Company holding an interest in the real-estate company, which is wholly owned by the fund.
8)
   Site without building.
9)
   Data relate to 100%.




58
Tax information




On 05 January 2007 Deka-ImmobilienEu-          Foreign rental income exempt from Ger-           Institutional and other professional investors
ropa, a real-estate fund formed under          man tax under the provisions of double           who are assessed for German income tax
German law, will distribute a dividend of      taxation agreements is however subject           can claim tax exemption of half of the
EUR 3.29 per unit for the financial year       to the so-called progression clause in Ger-      profit accruing from dividends of German
from 01 October 2005 to 30 September           many, i.e. the tax-exempt income is includ-      and foreign real-estate companies distrib-
2006. The amount distributed includes          ed in the German tax assessment for the          uted or retained by the fund (the so-called
German capital yield tax and German soli-      purpose of determining the tax rate payable      Half-income Procedure). Institutional and
darity surtax and the net amount remain-       by the individual taxpayer.                      other professional investors who are
ing after deduction of these taxes.                                                             assessed for German corporation tax are
                                               Investors are not liable for German tax on       exempt from tax on 95 % of such distribu-
Investors whose fund units are deposited       profits on sale of German and foreign real       tions, but the remaining 5 % of any such
with Deka Bank will be automatically           estate sold by the fund after expiry of a        profit is treated as non-tax-deductible
credited on the distribution date with         10-year period from date of acquisition.         operating expenses.
additional units equivalent in value to the
dividend due to them. The unit value used      Also exempt from German tax are profits          The full amount of interest and rental
for this purpose will be the redemption        from sale of foreign real estate before          income from German real estate is tax-
price applying on that date.                   expiry of the 10-year period in cases where      able. Institutional and other professional
                                               Germany has waived its claim to taxation         investors are normally exempt from tax on
                                               in the relevant double taxation agreement,       rental income from foreign real estate and
Taxation of fund                               but these profits are included in the Ger-       foreign partnerships under the provisions
                                               man tax assessment for the purpose of            of the relevant double taxation agree-
German real-estate funds are themselves        determining the tax rate payable by the          ments, but such income is subject to the
exempt from all taxes on income and            individual taxpayer. Any such profits must       provisions of the German progression
assets under German law. Their earnings        be declared on the form AUS.                     clause in the case of institutional or other
are taxed at investor level.                                                                    professional investors who are assessed for
                                               Investors are in all cases liable for German     German income tax.
                                               tax on profits on sale of German real estate
Taxation of private investors                  sold by the fund prior to expiry of a 10-        Institutional and other professional investors
                                               year period from date of acquisition, irre-      are not liable for German tax on profits on
Income from real-estate funds received by      spective of whether such profits are dis-        sale of German and foreign real estate
private investors is treated in Germany as     tributed or retained.                            sold by the fund after expiry of a 10-year
income from capital assets. When comput-                                                        period from date of acquisition, provided
ing the taxable amount of this type of         Profits from sale of securities and from         that these are not distributed. Distributed
income, the first EUR 750.- (married cou-      futures contracts are treated as tax-exempt.     profits from sale of foreign real estate are
ples: EUR 1,500.-) is exempt from tax in       Distributions from the fund’s equity (e.g.       tax-exempt, but such income is subject to
Germany and recipients taxable in Ger-         notional interest income on development          the provisions of the German progression
many can also deduct a fixed sum of EUR        projects) are not taxable.                       clause in the case of institutional or other
51.- (married couples: EUR 102.-) for inci-                                                     professional investors who are assessed for
dental expenses.                               In the case of funds distributing interim        German income tax. The full amount of
                                               dividends, any amounts distributed or            profits from sale of German real estate is
Investors are only liable for taxation on      deemed to have been distributed (retained        taxable.
half the German and foreign dividends,         profits) for any financial year will be treat-
including those of real-estate companies,      ed for tax purposes as having been received      Retained profits from sale of securities and
distributed or retained by the fund (the so-   by the investor on the date of the distribu-     futures contracts are deemed for tax pur-
called Half-income Procedure), whereas the     tion, provided that the amount of the dis-       poses to have not been received. If such
full amount of interest and rental income      tribution is sufficient to cover the capital     profits are distributed, institutional or other
from German real estate is taxable.            yield tax deductible at source.                  professional investors who are assessed for
                                                                                                German income tax can claim tax exemp-
The fund owns real estate situated in                                                           tion of half of the profit accruing from sale
countries other than Germany. Rental           Taxation of institutional and other              of shares. Institutional or other profession-
income from such real estate is normally       professional investors                           al investors who are assessed for German
taxable in the country of origin and                                                            corporation tax are exempt from tax on
remains untaxed in Germany under the           Income received by investors holding their       95 % of such distributions, but the remain-
provisions of the relevant double taxation     units in the form of institutional or other      ing 5 % of any such profit is treated as
agreements. This also applies to rental        professional assets is normally treated as       non-tax-deductible operating expenses.
income from real estate held by foreign        income from trade or business.
partnerships.
60
Institutional or other professional investors    No capital yield tax or solidarity surtax will             Accrued profit
should create a tax deferral for the differ-     be retained in cases where an investor res-
ence between the amount of the distribu-         ident in Germany submits a certificate of                  New tax regulations which entered into
tion and the distributed income. This defer-     tax exemption or a tax exemption order to                  force on 01 January 2005 require calcula-
ral must be reversed at the time of sale or      the bank holding his investment portfolio                  tion of accrued profit. Accrued profit is
redemption of the units and treated as           (e.g. a savings bank or the Deka Bank).                    defined as the amount of income not yet
profit. The tax deferral is EUR 0.7315 per       The distribution will then be made in the                  received from the fund by the investor, or
unit for institutional or other professional     gross amount or, alternatively, reinvested                 which is deemed to have been received
investors who are assessed for German            in the form of new fund units, provided                    within the meaning of Section 20, Para-
income tax and EUR 0.7315 per unit for           that the bank receives the aforementioned                  graph 1, Item 7 and Paragraph 2 (with the
institutional or other professional investors    certificate or order promptly. Tax exemp-                  exception of Item 2a) of the German
who are assessed for German corporation          tion orders are issued by the tax office                   Income Tax Act, and the amount of the
tax.                                             responsible for handling the investor’s tax                fund’s claims to such income.
                                                 affairs. If the bank receives the certificate
The table on Page 65 contains the infor-         of tax exemption or tax exemption order                    Accrued profits per unit are calculated on
mation on taxation required by Section 5         too late, the investor can claim refund of                 all days when valuation of the fund’s units
of the German Investments Act.                   retained capital yield tax and solidarity sur-             is stipulated and are published together
                                                 tax on presentation of the bank’s tax                      with the relevant redemption prices. The
In the case of institutional or other profes-    retention certificate when submitting his                  accrued profit is reduced on the date of
sional investors who use the balance sheet       income tax declaration. Investors treated                  distribution by the amount of the distribu-
method in their accounting, a letter dated       as non-resident in Germany for tax pur-                    tion. Accrued profits are taxable at the
02 June 2005 from the Federal German             poses receive either the dividend distribu-                time of sale of the units, the amount of
Ministry of Finances interpreting the provi-     tion without deduction of capital yield tax                accrued profit received from the sale being
sions of the German Investment Tax Act has       and solidarity surtax on that part of the                  offset against accrued profits already
ruled that receipt of income by the investor     distribution which is treated as interest                  charged to the same portfolio for other
will normally be deemed to take place on         income or in the form of new units rein-                   broken period transactions during the
the date of the decision to make a distrib-      vested in their name for the equivalent of                 same calendar year.
ution and not on the date of the actual          the full amount of the tax retention. They
distribution itself. Deka Immobilien Invest-     can claim refund of tax retained on the                    If the accrued profits received from the
ment GmbH publishes the date of its deci-        dividend from the Federal German Finan-                    sale are higher than those already charged
sions to make distributions on its website       cial Office in cases where the double taxa-                to the same portfolio, tax (30 percent cap-
at www.deka.de. The decision in this case        tion agreement with their country of resi-                 ital yield tax, plus 5.5% solidarity surcharge)
was approved in December 2006, which             dence stipulates a lower tax retention                     will be retained on the difference and
means that the income from the distribu-         (normally 15 percent).                                     remitted to the tax office. In cases where
tion must be included in the tax declara-                                                                   the investor has submitted a tax exemp-
tion for 2006.                                   Investors holding units in their own cus-                  tion certificate, no tax will be retained up
                                                 tody receive a certificate confirming reten-               to the amount of the exemption. The
                                                 tion of 35 percent capital yield tax, plus                 same applies to any other cases enjoying
Capital yield tax                                5.5% solidarity surcharge from the bank                    tax exemption (tax exemption orders, non-
                                                 at which they present the coupon for pay-                  residents for tax purposes).
German dividend distributions are liable to      ment.
deduction of 20 % capital yield tax, plus                                                                   If accrued profits already charged to the
5.5 % solidarity surtax. Interest income is                                                                 same portfolio for other broken period
liable to deduction of 30 % interest with-                                                                  purchase transactions during the same cal-
holding tax, plus 5.5 % solidarity surtax.
These deductions are remitted direct to
                                                  Calculation of capital yield tax liability
the tax office and the investor receives a
certificate confirming the tax retentions.                                                                    EUR per unit                       EUR per unit
German residents subject to unlimited tax-        Distribution                                                                                        3.2900
                                                  Basis for tax assessment 1)                                        0.4996
ation in Germany can submit these certifi-        30% capital yield tax 2)
cates with their tax declaration, and the         for units deposited with bank                                                                         0.1499
deducted amounts are credited against             5.5% solidarity surtax                                                                                0.0082
                                                  Net cash distribution                                                                                 3.1319
their tax liability. Capital yield tax is thus
an advance payment of income tax.                 1)
                                                       In accordance with normal practice, the above amounts have been rounded off to the fourth decimal place.
                                                       No adjustment has been made for differences arising from the rounding-off.
                                                  2)
                                                       Units held by investors themselves are liable to retention of 35% capital yield tax.




                                                                                                                                                                  61
endar year exceed accrued profits plus                        Profit from real estate and profit from                     estate) companies, realised or unrealised
accrued income received on sale of fund                       shareholdings                                               profits and losses resulting from the fund’s
units, refund of the tax charged on the                                                                                   shareholdings, especially in real-estate
difference can be claimed in the income                       Profits from real estate and profits from                   companies. This figure is also published as
tax declaration.                                              shareholdings are only of tax relevance for                 a percentage of the redemption price.
                                                              investors holding their units in the form of
                                                              institutional or other professional assets.                 Profits on real estate and profit from share-
Sale of privately held units                                                                                              holdings are calculated and published as
                                                              The profit from real estate includes foreign                percentage figures on all days when valua-
Profits realised by private investors on sale                 rentals not yet received or deemed to have                  tion of the fund’s units is stipulated. At the
of units within one year of their acquisi-                    been received by the investor, and also                     time of purchase or sale of fund units the
tion (speculation period) are taxable in full                 realised and unrealised changes in valua-                   investor must apply the respective percent-
as private sales to the extent that they                      tion of foreign real estate in cases where                  ages to his acquisition or redemption price.
exceed the basic exemption limit of EUR                       Germany has signed a double taxation                        The difference between the two figures
512.-. In order to avoid double taxation,                     agreement waiving the right to tax these.                   represents the tax-relevant share of profits
the taxable accrued profit is deductible                      This figure is published as a percentage of                 on real estate and shareholdings for the
from the profit on the sale.                                  the redemption price.                                       period during which the investor held the
                                                                                                                          unit.
                                                              The profit from shareholdings includes div-
                                                              idends not yet received or deemed to have
                                                              been received by the investor from (real-



 Capital yield tax liability for distribution and retained income

                                                                        Private Investors          Partnerships/              Corporation tax               Corporation tax
                                                                            EUR per unit         small companies         Section 8b, I+II KStG      Section 8b, VII+VIII KStG
                                                                                                    EUR per unit                 EUR per unit                   EUR per unit
 Amount of distribution per unit 1)                                                3.3060                 3.3060                        3.3060                        3.3060
 less tax-exempt capital repayments/
 distributions from equity                                                         0.7315                   0.7315                       0.7315                         0.7315
 Amount assessable for investment tax
 (distributed income and amounts treated as distributed)                           2.5745                   2.5745                       2.5745                         2.5745
 less tax-exempt distributed income and
 amounts treated as distributed:
 - already taxed income from prior years                                           0.0000                   0.0000                       0.0000                         0.0000
 - foreign income treated as tax-exempt under double taxation agreement 2)         1.7352                   1.7352                       1.7352                         1.7352
 - tax-exempt part of income under Half-income Procedure (Section
   3, Item 40 of German Income Tax Act (EstG) or tax-exempt income as
   defined in Section 8b, Para. 1 of the German Corporation Tax Act (KStG)         0.0000                   0.0000                       0.0000                         0.0000
 - tax-exempt profits on sale of assets for units held by private investors        0.3398                   0.0000                       0.0000                         0.0000
 Total tax-exempt distributed income and
 amounts treated as distributed                                                    2.0750                   1.7352                       1.7352                         1.7352
 Taxable distributed income and amounts treated as distributed                     0.4996                   0.8394                       0.8394                         0.8394
 less income not liable for interest withholding tax:
 - income liable for tax, but not for interest withholding tax under
   the Half-income Procedure (Section 3, Item 40 of German Income
   Tax Act (EstG)                                                                  0.0000                   0.0000                       0.0000                         0.0000
 - income from profits on sale of assets liable for tax, but not for
   interest withholding tax for units held as corporate assets                     0.0000                   0.3398                       0.3398                         0.3398
 Basis for assessment of liability for interest withholding tax (ZASt) 3)          0.4996                   0.4996                       0.4996                         0.4996
 1)
      Inc. foreign withholding tax of EUR 0.0160 per unit not already deducted as expenses for management of capital assets. The distribution for investment tax purposes
      is thus EUR 3.29 per unit.
 2)
      Income from foreign sources not liable to double taxation in Germany under the relevant double taxation agreement (Exemption Method) is subject to the provisions
      of the German progression clause. This means that such income is added in when determining the German tax liability of the individual investor. As foreign income
      subject to the provisions of the progression clause is assessed up to the amount of the tax liability which would have applied if the income originated in Germany, an
      amount totalling EUR 2.1860 per unit should be entered on the AUS form of the German tax declaration of investors holding units as private assets to determine the
      amount of their individual tax liability. This must be broken down by country as follows: Great Britain EUR 1.131 per unit, the Netherlands 0.1646 per unit, Belgium
      0.0000 per unit, Austria 0.0983 per unit, Spain 0.1225 per unit, France 0.0712 per unit, Italy 0.0095 per unit, Eire 0.0551 per unit, Sweden 0.0622 per unit, Poland
      0.0072 per unit, USA 0.0168 per unit, Australia 0.2686 per unit. The income subject to the provisions of the progression clause includes an amount of 0.9277 per unit
      (Great Britain EUR 0.7146 per unit, the Netherlands 0.2131 per unit) from profits on sales realised after expiry of the speculation period as defined in Section 23, Para.
      1 (1st. sentence of Item 1a) of the German Income Tax Act (EstG) in force prior to 01 January 1999. On receipt of their income tax assessment, investors can appeal
      against taxation of this amount as income from speculation.
 3)
      In accordance with normal practice, the above amounts have been rounded off to the fourth decimal place. No adjustment has been made for differences arising from
      the rounding-off.




62
Profits from real estate realised on sale of       1/23 district tax office in Vienna, to which     but which is not his country of residence,
units by all institutional or other profes-        all relevant enquiries should be addressed.      is normally reported by the bank to the
sional investors are completely tax-exempt.                                                         relevant tax office in his country of resi-
                                                   The foregoing statements relating to limit-      dence.
95% of profits from shareholdings realised         ed tax liability in Austria are based on the
on sale of units by institutional or other         current legal situation. This may change         In the case of portfolios held in Luxem-
professional investors who are assessed            as a result of amendments to laws, court         burg, Austria, Belgium and the countries
for corporation tax are tax-exempt. The            decisions or changes in official practice.       which have signed an agreement with the
remaining 5 % of any such profit is treated        Investors should therefore consult their tax     EU, a 15 % withholding tax is deducted
as non-tax-deductible operating expenses.          adviser to determine their individual tax        anonymously in lieu of this report. The
Institutional or other professional investors      situation.                                       bank issues a certificate confirming the
who are assessed for German income tax                                                              retention to the investor, who can then
can claim tax exemption for half of the                                                             claim deduction of the tax retention when
profit accruing from shareholdings.                EU Interest Directive                            filing his tax declaration.

As of 30 September 2006, the profit from           The EU Interest Directive was implemented        Investors owning portfolios at the Deka-
shareholdings was 1.72 % and the profit            in Germany on 01 July 2005 by the Regu-          Bank Girozentrale Luxembourg S.A. or
from real estate 7.65 %.                           lation on Disclosure of Interest Payments        the Deka(Swiss) Privatbank AG have the
                                                   (ZIV). This aims to guarantee the cross-         option of exempting themselves from this
                                                   border flow of information enabling cor-         tax retention by issuing an instruction
Limited tax liability in Austria                   rect taxation of interest received by natural    authorising the bank to make a voluntary
                                                   persons within the EU. The EU has negoti-        disclosure of the income received by them
Investors not resident in Austria have a           ated agreements along the lines of the           and including it in their German tax decla-
limited tax liability in Austria for fund income   EU Interest Directive with various non-EU        ration.
emanating from Austrian real estate.               countries (in particular, Switzerland, Liecht-
                                                   enstein, Andorra, Monaco, San Marino).
The amount of fund income liable to Aus-
trian tax is EUR 0.1285 per unit. Investors        The EU Interest Directive does not affect
should multiply this amount by the num-            the way in which income from capital is
ber of units held by them.                         taxed in the individual EU countries. It is
                                                   concerned solely with payments to or from
The tax rate normally payable by natural           accounts or portfolios held by EU citizens
persons on this income is 25 %. The                outside their home country.
applicable tax rate may however be lower
when the actual assessment is made.                Funds defined as not covered by the direc-
Natural persons can also claim a tax-              tive (e.g. open-ended real-estate funds)
exempt amount of EUR 2,000.-, up to                come within the ambit pf the ZIV if they
which profits realised in Austria remain           allow themselves to be treated as if they
tax-exempt and for which they are not              were covered by the directive (OGAW =
required to submit a tax declaration. If the       Organism for Mutual Investment in Securi-
tax-exempt amount is exceeded or at the            ties). In a letter dated 12 January 2006
demand of the Austrian tax authorities,            Deka-ImmobilienEuropa opted for treat-
the investor must submit a tax declaration.        ment as an OGAW for ZIV purposes and
Income from the 2005/2006 financial year           has consequently been reporting the infor-
is taxable as of the date of distribution,         mation required under the ZIV as from 01
i.e. in 2007.                                      January 2006.

The tax rate payable by corporations in            Its contract terms permit Deka-Immo-
Austria is currently 25 %. Although there          bilienEuropa to invest more than 40 per-
is no tax-exempt amount for legal persons          cent of its assets in interest-bearing securi-
liable for corporation tax, the responsible        ties as defined in the EU Interest Directive.
tax offices are empowered at their sole            Interest income included in the distribution
discretion to waive taxation in Austria of         and in the proceeds from sale or redemp-
so-called “petty amounts”. The responsi-           tion of units received by an investor from a
ble tax office in the present case is the          bank in a country where the EU Interest
                                                   Directive or a similar agreement applies,


                                                                                                                                              63
                                      Tax liability pursuant to Section 5, Para. 1 (Items 1 and 2)
                                                         of German Investment Tax Act (InvStG)



Name of fund                                                                                                                                                   Deka-ImmobilienEuropa
ISIN                                                                                                                                                                     DE0009809566
Coupon No.                                                                                                                                                                             10
Redemption price on 30 September 2006                                                                                                                                48.38 EUR per unit
Date of dividend resolution                                                                                                                                          11 December 2006


Section 5, Para. 1 (Items 1 and 2)                                                                   Private             Partnerships/        Corporation tax          Corporation tax
of the Investment Tax Act                                                                          Investors           small companies            Section 8b,              Section 8b,
                                                                                                                                                    I+II KStG             VII+VIII KStG
                                                                                                EUR per unit               EUR per unit          EUR per unit             EUR per unit
1 a)            Amount of distribution per unit 1)                                                   3.3060                       3.3060                3.3060                    3.3060
2               Amount retained                                                                      0.0000                       0.0000                0.0000                    0.0000
                of which: tax-exempt (per unit)
                   Tax-exempt capital repayments/distributions from equity                           0.7315                       0.7315                0.7315                    0.7315
1 b)            Distributed income                                                                   2.5745                       2.5745                2.5745                    2.5745
                Amounts included in distributed income or in income treated
                as distributed:
1 c aa)            already taxed in prior years                                                      0.0000                       0.0000                0.0000                    0.0000
1 c bb)            tax-exempt profits on sale of securities, pre-emptive rights
                   and forward contracts for units held as private assets                            0.3398                             –                     –                          –
1 c cc)            income taxed under Half-income Procedure
                   (Section 3, Item 40 of German Income Tax Act (EstG)                               0.0000                       0.0000                      –                          –
1 c dd)            income exempt from tax under Section 8b,
                   Para. I of the German Corporation Tax Act (KStG)                                       –                             –               0.0000                           –
1 c ee)            profits on sales subject to Half-income Procedure
                   (Section 3, Item 40 of German Income Tax Act (EstG)                                    –                       0.0000                      –                          –
1 c ff)            income exempt from tax under Section 8b,
                   Para. II of the German Corporation Tax Act (KStG)                                      –                             –               0.0000                           –
1 c gg)            tax-exempt income from sale of pre-emptive rights
                   to free shares in limited companies                                               0.0000                       0.0000                0.0000                           –
1 c hh)            tax-exempt profits from purchase and sale of real estate in Germany
                   or other countries outside the 10-year speculation period                         0.0000                             –                     –                          –
1 c ii)            foreign income exempt from taxation under double taxation agreements
                   (in particular, foreign rental income and profits on purchase
                   and sale of foreign real estate) 2)                                               1.7352                       1.7352                1.7352                    1.7352
1 c jj)            foreign income on which foreign withholding tax has actually been paid
                   (except where the withholding tax has already
                   been claimed as an expense) 3)                                                    0.0618                       0.0618                0.0618                    0.0618
1 c kk)            foreign income on which notional foreign withholding tax
                   is eligible for credit                                                            0.0000                       0.0000                0.0000                    0.0000
1 d aa)         Basis for computation of liability for 30% interest withholding tax (ZASt) 4)        0.4996                       0.4996                0.4996                    0.4996
1 d bb)         Basis for computation of liability for 20% capital yield tax (KESt)                  0.0000                       0.0000                0.0000                    0.0000
1 e aa)         30% interest withholding tax eligible for deduction or refund                        0.1499                       0.1499                0.1499                    0.1499
1 e bb)         20% capital yield tax eligible for deduction or refund                               0.0000                       0.0000                0.0000                    0.0000
1 f aa)         Foreign withholding tax eligible for deduction or credit                             0.0160                       0.0160                0.0160                    0.0160
1 f bb)         Deductible foreign withholding tax                                                   0.0000                       0.0000                0.0000                    0.0000
1 f cc)         Notional foreign withholding tax                                                     0.0000                       0.0000                0.0000                    0.0000
1 g)            Depreciation charge (for buildings)                                                  0.1845                       0.1845                0.1845                    0.1845
1 h)            Corporation tax relief pursuant to Section 37,
                Para. 3 of German Corporation Tax Act (KStG)                                              –                             –               0.0000                    0.0000



1)
     inc. foreign withholding tax of EUR 0.0160 per unit actually paid, but not already deducted as an expense. The distribution for investment tax purposes is thus EUR 3.2900 per unit.
2)
     Income from foreign sources not liable to double taxation in Germany under the relevant double taxation agreement (Exemption Method) is subject to the provisions of the German
     progression clause. This means that such income is added in when determining the German tax liability of the individual investor. As foreign income subject to the provisions of the
     progression clause is assessed up to the amount of the tax liability which would have applied if the income originated in Germany, an amount totalling EUR 2.1860 per unit should
     be entered on the AUS form of the tax declaration of investors assessed for tax in Germany to determine the amount of individual tax liability. This must be broken down by country
     as follows: Great Britain EUR 1.131 per unit, the Netherlands 0.1646 per unit, Belgium 0.0000 per unit, Austria 0.0983 per unit, Spain 0.1225 per unit, France 0.0712 per unit, Italy
     0.0095 per unit, Eire 0.0551 per unit, Sweden 0.0622 per unit, Poland 0.0072 per unit, USA 0.0168 per unit, Australia 0.2686 per unit. The income subject to the provisions of the
     progression clause includes an amount of 0.9277 per unit (Great Britain EUR 0.7146 per unit, the Netherlands 0.2131 per unit) from profits on sales realised after expiry of the spec-
     ulation period as defined in Section 23, Para. 1 (1st. sentence of Item 1a) of the German Income Tax Act (EstG) in force prior to 01 January 1999. On receipt of their income tax
     assessment, investors can appeal against taxation of this amount as income from speculation.
3)
     This item includes income from the Swedish partnerships already included in taxable income in prior years and which are now eligible for credit or deduction of the foreign with-
     holding tax paid. Income already included in taxable income in prior years is not included in the taxable income for the present year.
4)
     In accordance with normal practice, the above amounts have been rounded off to the fourth decimal place. No adjustment has been made for differences arising from the
     rounding-off.




                                                                                                                                                                                             65
Certificate issued pursuant to Section 5, Paragraph 1
(Item 3 of 1st. sentence) of German Investment Tax Act



Audit of tax-relevant data on invest-          accordance with the provisions of the Ger-     The audit also includes assessment of the
ment assets of Deka-ImmobilienEu-              man Investment Tax Act comply with Ger-        Company’s interpretation of the relevant
ropa for the period from 01 October            man tax regulations. Our audit was based       tax regulations, which is deemed unobjec-
2005 to 30 September 2006                      on the accounts/records examined by an         tionable provided that it is reasonably well
                                               auditor in accordance with Section 44,         supported by legal materials, court rulings,
To the management company Deka Immo-           Paragraph 5 of the German Investments          the relevant tax law literature and pub-
bilien Investment GmbH (hereinafter called     Act and on the audited annual report. Our      lished opinions of the fiscal authorities.
the Company):                                  opinion is based on the data contained in      We draw attention to the fact the future
                                               the reconciliation and the data destined       legislation and, in particular, new court
The Company has instructed us to per-          for publication. Our audit focused, in par-    rulings could necessitate revision of our
form an audit pursuant to Section 5, Para-     ticular, on the treatment of capital invest-   assessment of the Company’s interpreta-
graph 1, Item 3 of the German Investment       ments, income and expenses for tax pur-        tion.
Tax Act to determine whether the state-        poses and their allocation in the accounts,
ments on the investment assets of Deka-        and also on other tax records. In cases        We believe that the audit performed by
ImmobilienEuropa during the period from        where the fund invested in other funds,        us constitutes an adequate basis for our
1 October 2005 to 30 September 2006 to         our audit was limited to verification that     assessment.
be published by the Company pursuant to        the available tax data for these funds had
Section 5, Paragraph 1 (Items 1 and 2 of       been correctly registered by the Company       Subject to the foregoing reservations we
1st. sentence) of the German Investment        in accordance with the certificates provid-    hereby certify pursuant to Section 5, Para-
Tax Act have been prepared in accordance       ed. The tax data on which these were           graph 1, Item 3 of the German Investment
with German tax regulations.                   based were not audited by us.                  Tax Act that the statements prepared by
                                                                                              the Company pursuant to Section 5, Para-
The Company’s legal representatives bear       Our audit was performed in accordance          graph 1 (Items 1 and 2 of 1st. sentence)
the responsibility for calculating the tax-    with standards laid down for the audit of      of the German Investment Tax Act are in
relevant statements pursuant to Section 5,     annual accounts of German companies            accordance with German tax regulations.
Paragraph 1 (Items 1 and 2 of 1st. sen-        by the Institute of German auditors (IDW).
tence) of the German Investment Tax Act        These stipulate that an audit must be          Frankfurt am Main, 15 December 2006
and to the relevant German tax regula-         planned and performed in such a way
tions. These statements are calculated by      that it will with a sufficient degree of
reference to the accounts and records and      certainty reveal whether the statements
the annual report for the relevant period      issued pursuant to Section 5, Paragraph 1
presented in accordance with the provi-        (Items 1 and 2 of 1st. sentence) of the
sions of Section 44, Para. 1 of the German     German Investment Tax Act contain no
Investment Act and consist of a reconcilia-    material inaccuracies. In planning the
tion based on tax regulations summarising      actions to be taken during the audit, due
the data required in accordance with Sec-      consideration is given to available infor-
tion 5, Paragraph 1 (items 1 and 2 of first    mation on the management of the fund           KPMG Deutsche Treuhand-Gesellschaft
sentence) of the Investment Tax Act. If        and to the possibility that errors may         Aktiengesellschaft
the Company makes investments in other         have been committed. The efficacy of           Wirtschaftsprüfungsgesellschaft
funds, it uses the available tax information   internal control systems and the vouchers
for those funds.                               supporting the tax-relevant statements
                                               issued pursuant to Section 5, Paragraph 1
Our task is to perform an audit enabling       (Items 1 and 2 of 1st. sentence) of the        Stefan Schmidt     ppa.
us to give an opinion as to whether the        German Investment Tax Act are verified,        Lawyer             Jürgen Bauderer
statements published by the Company in         mainly on a test basis.                        Tax Accountant     Tax Accountant




66
                                         Key data on Deka-ImmobilienEuropa at a glance




Security identification number / ISIN:    980 956 / DE0009809566

Date of launch of fund:                   20 January 1997

Purchase and sale of
Deka-ImmobilienEuropa units:              at savings banks and German state central banks, or through other banks or from the
                                          management company

Issue premium:                            up to 6 % under the contract terms; currently 5.26 %

Reimbursement of expenses
in accordance with Clause 21
of the Special Contract Terms:
– Management fee:                         up to 1.1% per annum of the fund’s average value as calculated from daily levels.
                                          The management company is entitled to receive monthly pro rata advance payments,
                                          currently at a level of 0.6 p.a. of the fund’s average value.

– Purchase/sale/construction fee:         once-off payment of up to 2% of value calculated by the expert committee, currently
                                          1% of value calculated by the expert committee.

– Project development fee:                once-off payment of up to 2% of value calculated by the expert committee.

– Custodian bank charge:                  up to 0.1% p.a. of the fund’s average value as calculated from daily levels. The custodian
                                          bank is entitled to receive monthly pro rata advance payments, currently at a level of
                                          0.05 p.a. of the fund’s average value.

Denomination of unit certificates:        1, 10, 100. Issue of unit certificates ceased on 01 April 2005. Unit holdings are now
                                          registered in a blanket document.

Distribution:                             annually at the beginning of January. The level of the distribution is determined mainly
                                          by the amounts of rental income and interest income on investments of liquid funds.
                                          The distribution is made annually against presentation of the relevant coupon after publi-
                                          cation of the annual report. The distribution results in a corresponding reduction in the
                                          unit price.

Reinvestment
of distribution:                          for units deposited with DekaBank automatic reinvestment of distribution at redemption
                                          price, i.e. free of charges.

Financial Year:                           from 1 October of each year to 30 September of the following year.

Submission of reports:
– Annual report:                          Closing date:     30 September of each year
                                          Publication:      not more than 3 months after the closing date
– Half-year report:                       Closing date:     31 March of each year
                                          Publication:      not more than 2 months after the closing date

Stock exchange listing:                   not planned




                                                                                                                                  67
Your partners in the Ÿ group




Fund management company                    Deputy Chairman                            Holger Mai
Deka Immobilien Investment GmbH            Dr. Bernhard Steinmetz                     Executive Director of Taunus-Sparkasse,
Taunusanlage 1                             Executive Director of DekaBank             Bad Homburg v.d.H.
60329 Frankfurt am Main                    Deutsche Girozentrale, Frankfurt am Main
                                                                                      Gerrit Raupach
Legal form                                 Members                                    Executive Director of Sachsen LB
Private limited company (GmbH)             Dr. Jürgen Allerkamp                       Landesbank Sachsen Girozentrale, Leipzig
                                           Executive Director of NORD/LB,
Date of foundation                         Norddeutsche Landesbank Girozentrale,      Peter Rieck
29 November 1966                           Brunswick                                  Executive Director of HSH Nordbank AG,
                                                                                      Hamburg
Shareholders’ equity                       Hubert Beckmann
Subscribed              EUR 10.2 million   Management Board Chairman of West-         Karl-Heinz Tenter
Paid in                 EUR 10.2 million   deutschen Immobilienbank, Mainz            Management Board Chairman of
Liable                  EUR 10.2 million                                              Sparkasse am Niederrhein, Moers
(Status as of 31 December 2005)            Dr. Rudolf Fuchs
                                           Management Board Chairman of               Bernhard Visker
General Managers                           Sparkasse Mainfranken, Würzburg            Manager of Real Estate Dept.,
Reinhardt Gennies (Chairman)                                                          HSH Nordbank AG, Hamburg
Johannes Haug                              Werner Fuchs (until 30 April 2006)
Andreas C. Steyer                          Executive Director of LRP Landesbank       Dr. Bernhard Walter
Dr. Walter J. Helbach (Deputy)             Rheinland-Pfalz Girozentrale, Mainz        Executive Director of Landesbank
                                                                                      Baden-Württemberg, Stuttgart
Shareholders                               Hans-Jürgen Gutenberger
DekaBank                                   Executive Director of DekaBank             Johannes Werner
Deutsche Girozentrale                      Deutsche Girozentrale, Frankfurt am Main   Management Board Chairman of
Frankfurt am Main                                                                     Kreissparkasse Ostalb, Aalen
                                           Dr. Max Häring
                                           Management Board Chairman of               Jörg Wohlers
Supervisory Board                          Landesbank Saar, Saarbrücken               Substitute Executive Director of
(as from 01 July 2006)                                                                Hamburger Sparkasse AG, Hamburg
Chairman                                   Johannes Hüser
Dr. Matthias Danne                         Management Board Chairman of
Executive Director of DekaBank Deutsche    Kreissparkasse Wiedenbrück,                Expert Committee
Girozentrale, Frankfurt am Main            Rheda-Wiedenbrück                          Chairman
                                                                                      Alfred H. Lehner
Deputy Chairman                            Peter Kobiela                              Utting am Ammersee
Dr. h. c. Fritz Oelrich                    Executive Director of Landesbank
Executive Director of                      Hessen-Thüringen Girozentrale,             Members
DekaBank Deutsche Girozentrale,            Frankfurt am Main                          Dipl.-Ing. Hermann Altmeppen
Frankfurt am Main                                                                     Certified expert of Industrie- und Handels-
                                           Dirk Köhler                                kammer Brunswick, Brunswick
Member                                     Management Board Chairman of
Hans-Jürgen Gutenberger                    Sparkasse Uelzen, Uelzen                   Dipl.-Ing. Wolfgang Becker
Executive Director of                                                                 Certified expert of Industrie- und Handels-
DekaBank Deutsche Girozentrale,            Dr. Klaus Köhler                           kammer Düsselsdorf
Frankfurt am Main                          Management Board Chairman of
                                           Kreissparkasse Quedlinburg, Quedlinburg    Dipl.-Ing. Friedrich-Otto Blumers
                                                                                      Certified expert of Industrie- und Handels-
Supervisory Board                          Herbert Lehmann                            kammer Mittlerer Neckar, Stuttgart
(until 30 June 2006)                       Management Board Chairman of
Chairman                                   Sparkasse Staufen-Breisach, Staufen
Dr. h. c. Fritz Oelrich
Executive Director of DekaBank
Deutsche Girozentrale,
Frankfurt am Main


68
Bau-Ing. Eckhard Lammel                         Auditors of management company
Architect, Fellow of the Royal Institution of   and of the funds managed by it
Chartered Surveyors, Glashütten
                                                PricewaterhouseCoopers
Dipl.-Ing. Reinhard Schilling                   Aktiengesellschaft
Architect, certified expert of Industrie- und   Wirtschaftsprüfungsgesellschaft
Handelskammer für Rheinhessen, Mainz            Olof-Palme-Straße 35-37
                                                60439 Frankfurt am Main
Dipl.-Kfm. Manfred Sterlepper
Tax accountant, certified expert of             The management company manages 10
Industrie- und Handelskammer,                   funds, of which: three public funds (Deka-
Frankfurt am Main                               ImmobilienFonds, Deka-ImmobilienEuropa
                                                and Deka-ImmobilienGlobal) and seven
                                                restricted funds, plus two individual real-
Custodian bank                                  estate funds.
DekaBank Deutsche Girozentrale
Mainzer Landstraße 16                                     Status as of 30 September 2006
60325 Frankfurt am Main

Legal form
Public institution

Registered offices
Frankfurt am Main and Berlin
(Main domicile underlined)

Shareholders’ equity
Subscribed            EUR 1,094.3 million
Paid in               EUR 1,094.3 million
Liable                EUR 3,295.3 million
(Status as of 31 December 2005)

Main activities:
Money and currency trading, securities
and loan transactions (including loans
secured on real estate), mutual fund
business

Paying and sales office in Luxemburg
(which will also accept custody of shares
on request):

DekaBank Deutsche Girozentrale
Luxembourg S.A.,
38, avenue John F. Kennedy,
L-1855 Luxembourg




                                                                                              69
Deka Immobilien
Investment GmbH
Taunusanlage 1
60329 Frankfurt a. M.
P.O. Box 11 05 23
60040 Frankfurt

Phone: (+49) 69 71 47 – 0
Fax: (+49) 69 71 47 – 35 29
www.deka-immobilien.com

				
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