tailieunhanh - 2011 European Real Estate Investment Outlook and Market Perspective

We will continue to identify and integrate pertinent metrics and Kpis related to energy, water, waste and carbon into all aspects of our investment process. to realize this multi- faceted goal, we will continue to increase the share of funds of properties benchmarked in the Greenprint performance index, and will develop an it strategy to collect, store, and report key metrics on an increasingly automated basis. Developing such a strategy will enable us to effectively and systematically assess sustainability as a risk factor, and to streamline our system for tracking existing and potential government policies and incentives that could impact value. | RREEF Research 2011 European Real Estate Investment Api-ii 2011 Outlook and Market Perspective Executive Summary The recovery of the European real estate sector commenced in 2009 and accelerated significantly in 2010 however performance was not evenly distributed across the continent. Significant variation persists across markets and sectors in terms of economy market fundamentals and outlook. This situation presents unique investment opportunities however given the variation in the pace of growth across geography and sector a strategic approach to investing has never been more important. In this paper we review the current market situation and present the outlook for European real estate based on the RREEF research house view. This allows us to identify specific markets which offer attractive core investment prospects for investors in the office and retail sectors. Looking ahead we also identify potential investment strategies further up the risk spectrum which warrant a closer look for investors seeking higher yields and a play on the recovery. The major investment themes are the following Office Total returns for the office sector will be largely driven by rental growth as near term yield compression will likely be countered by expansion in the latter years of the forecast. In the near term London and Paris followed by Warsaw and Stockholm are likely to be among the outperformers while the late recovery markets like Madrid Dublin or Budapest could provide attractive return opportunities after 2013. Shopping Centre Prime European shopping centres are expected to deliver strong overall returns driven by gradual yield expansion and only modest rental growth. While stock picking will remain crucial to achieving outperformance in this sector. Germany France Poland the UK and Sweden are forecast to be the top performers amongst European markets. Core opportunities in late recovery markets Late recovery markets may offer the opportunity to acquire core product at .