P R E S S R E L E A S E

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1 P R E S S R E L E A S E Realogis publishes market report on the lease of logistics properties and industrial space in the greater Munich region during Realogis analysis: First study of the total volume of warehouse, logistics and production space in Greater Munich - Rental space take-up fell approx. 15% to 247,000 sqm in Rental price for space in new buildings reached a new record of 6.75/sqm - Outlook: Demand for speculative new buildings; continuing migration into the surrounding areas - About us: Market leader Realogis Munich broke through the 1 million sqm barrier during its 10 th anniversary year Munich, 7 th January 2016 Strong demand from industry, the ongoing outsourcing trend and the dynamic global e-commerce sector have all contributed towards further growth in the logistics industry. The German rental market for warehouse, logistics and production real estate is also benefiting from this. In order to promote greater transparency for investors and tenants in this property class, Realogis - the consultancy firm for logistics and industrial property and business parks that was founded 10 years ago and is now the market leader in Germany - has carried out a detailed study of all existing space in Greater Munich. Contrary to previous common practice, Realogis ensured that its logistics market reports are available to investors and tenants online and at no cost since its founding years. Our study fulfils the wishes of our customers by listing all industrial areas separately for the first time, said Oliver Raigel, managing director of Realogis Immobilien München GmbH. Now as well as in future, we are in a position to show warehouse stock by industrial area, region, direction and more at the touch of a button. Raigel added: In Greater Munich we have calculated a total current volume of approx. 5.6 million sqm of existing warehouse, storage and production space. This equates to around 785 football pitches or the entire metropolitan region of Rhine-Neckar with more than 300 cities, towns and communities. In 2015 a total of 247,000 sqm of warehouse, storage and production space was newly let to all market participants in the Greater Munich area (a 15% drop compared to the previous year s volume of 290,000 sqm), according to information from the real estate consultant. This corresponds to 22% of all existing space in this market area.

2 The reason for the decline is the ongoing shortage of space within an approx. 50 km radius of Munich. In the overall market, spaces larger than 5,000 sqm are now fully occupied, said Raigel. The vacancy rate for all space segments currently lies below 2% and modern logistics properties with leases that are about to expire are immediately re-let. Last year this also had an effect on the rental price for new logistics buildings in the Munich environs: the rate increased from 6.50 to a new peak value of The few new developments, regenerations of brownfield sites and refurbishments of existing buildings were only partly able to meet the demand, however, said Raigel. To resolve this, it is imperative that new buildings are constructed in the suburbs on a speculative basis. Large users such as the car manufacturer BMW, which in 2015 gave the green light for three new logistics and distribution centres with a total area of 370,000 sqm that should go into operation in 2016 or 2017, have already opted for new locations in the surrounding areas (Wallersdorf Dingolfing in the Landau district; Bruckberg-Gündlkofen in the Landshut district; and Kleinaitingen in the Augsburg district). The e-commerce sector is also gathering momentum in Munich. In 2015, for example, Amazon built two new logistics centres with around 15,000 sqm in Greater Munich and a food retailer leased approx. 4,500 sqm for home delivery services. According to the analysis by Realogis, there were a total of 89 new contract signings by all market participants. Of these around 15 took place in the segment for 5,000-sqm and above, of which four were for 10,000 sqm or more. Seven lease contracts applied to the 3,000-5,000 sqm segment. As is traditionally the case, most changes in tenants took place in the 1,000-3,000 sqm segment with 31 contract signings and in the sub-1,000 sqm segment with 36 new deals.

3 In contrast to the previous year, logistics companies were the biggest users of space in 2015 with a 41% share of the total take-up volume (101,270 sqm). Retailers were in second place with a 32% share (79,040 sqm) followed by production companies with 20% (49,400 sqm). As in previous years, Munich North was the most popular location for tenants and accounted for 57% of the take-up volume (140,790 sqm), followed by Munich East with 26%, (64,220 sqm), Munich West with 11% (27,170 sqm) and Munich South with 6% (14,820 sqm). The lease prices for the various types of real estate remained stable in 2015: - High-quality logistics properties with the following features: at least m ceiling height, large delivery areas and at least 1-2 loading bays per 1,000 sqm of warehouse space, efficient heating systems. Lease price for warehouse space: euros/sqm, attached office space euros/sqm - Functional existing properties with the following features: at least 7.50 m ceiling height, ramp and/or ground-level delivery, large delivery areas, heating, sprinkler system. Lease price for warehouse space: euros/sqm, attached office space euros/sqm - Simple warehouse spaces with the following features: up to 5.00 m ceiling height, inadequate lighting and insulation, mostly ground-level delivery. Lease price for warehouse space: euros/sqm, attached office space euros/sqm About us: In its 10 th anniversary year, Realogis reached the 1 million-sqm threshold in lettings to manufacturers, retailers and logistics companies in the Greater Munich area alone Between 2005 and the end of 2015, Realogis Immobilien München let a total of 1,010,000 sqm of warehouse, logistics and production space in this market area. In 2005 we

4 became the first consultancy company in Germany to specialise in logistics and industrial property, said Oliver Raigel. Today, logistics is a topical issue not least because of the growing e-commerce sector, and investors are now placing a strong focus on the logistics property asset class. In 2005 we still had many dealings with local owners in Greater Munich, but institutional investors now dominate the market. Looking back over the past 10 years, we have accompanied diverse market cycles. Among the biggest changes was the transformation of Greater Munich between from a strong tenants market to a landlords market from 2013 due to the low supply. Early highlights for Realogis in Greater Munich included the marketing of Prologis Park in Neufahrn with a 170,0000 sqm site and 100,000 sqm of usable space, which is let to MAN group among others. In 2007, the company brokered a long-term lease contract for an approx. 20,000-sqm logistics space in Unterschleißheim on behalf of Scherm Tyre & Projekt Logistik GmbH. In the search for the best location for a state-of-the-art bakery in Germany, in 2011 Realogis successfully advised Glockenbrot Bäckerei on the acquisition of a 40,000 sqm site in the Gada A8 business park in Bergkirchen. The marketing of the logistics park built on a partly speculative basis in Munich-Pliening for investor and project developer Alpha Industrial represented a further milestone in 2011/2012. The park has a total area of 32,000 sqm. Realogis was given the exclusive mandate for the tender process and the placement of the new 18,500-sqm building with Ratioform Verpackungen. During the same period, Realogis brokered lease contracts not only for its core target groups of logistics companies, manufacturers and retailers but also on behalf of welfare institutions such as workshops that help people with disabilities to participate and integrate in the working life, or workshops for the blind and visually impaired. In 2013/2014, Realogis marketed among other things the speculatively constructed 34,000 sqm new build in Munich-Parsdorf together with Immogate to companies including Media Saturn Group and Develey Senf & Feinkost GmbH. One of its biggest challenges was the placement of a 20,000-sqm prototype plant with a Bavarian car manufacturer in 2012 due to the complicated and extensive requirements involved. * The greater Munich area The Bavarian state capital Munich is internationally one of the leading commercial centers, with a broadly based and balanced industry structure. Realogis defines this submarket as the relevant available warehouse, logistics, industrial and production space within a radius of approx. 50 km around Munich. Situated at the geographic heart of Europe, the greater Munich area disposes over an outstanding transport infrastructure, including eight motorways (A8, A9, A92, A94, A95, A96, A995 and A99), the international airport and freight transport by train. ** Purchases, developments and investments made by user-owners are not included

5 Graphics: Graphics may be published free of charge, citing the source: "Realogis The top address for industrial and logistics real estate: The Realogis group Realogis is the leading real estate consultant and agent for logistics and industrial properties and business parks in Germany. Realogis sells, leases and appraises properties all around Germany and Europe and advises companies in the fields of logistics and fulfilment. This full range of services for logistics properties is one of its kind and enables Realogis to provide holistic solutions to investors, vendors, project developers, owner-users and tenants. The company group includes subsidiaries in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart as well as Realogis Deutschland, which operates throughout Germany and Europe. Media contact: Silke Hoffmann SH/Communication Agentur für Public Relations Fritz-Vomfelde-Straße 34, D Düsseldorf Tel: +49/211/ , Fax: +49/211/ Corporate Contact Realogis: Oliver Raigel Managing Director Realogis Immobilien München GmbH Rundfunkplatz 4, München Tel +49 (0) 89 / o.raigel@realogis.de