12.80 /m² peak city centre office rent

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1 A persuasive location: Hannover property market report! The most important data at a glance 185 /m² peak retail city centre rent 2 nd place in tenant satisfaction ranking for Germany by SEB bank 150,000 m² office space turnover ,000 m² new housing space since 2000 Business and employment promotion Hannover Economic Development Vahrenwalder Straße Hannover Telephone +49 (0) Fax +49 (0) wirtschaftsfoerderung@region-hannover.de Brüderstraße Hannover Telephone +49 (0) Fax +49 (0) March 2012: Vahrenwalder Straße Hannover wirtschaftsfoerderung@hannover-stadt.de September /m² peak city centre office rent +30,000 inhabitants by 2030 in Hannover TOP 10 retail locations in Germany 850 million invested in logistics location since 2003 Property Market Report 2011 for the Hannover region Business and employment promotion

2 ! Hannover at a glance Table of contents Hannover region population ( ) 1.13 million of which Hannover city 522,700 Registered workforce, Hannover region ( ) 431,100 of which Hannover city 275, Rents in Hannover office market (in /m 2 ) * Introduction page 4 Hannover s prospects attractive and dynamic 11 Office property market Retail property market 10 Total office employees ,200 Total office employment ratio % Lettable space office portfolio 2010 (gif) in m2* 4,596,000 Office space turnover 2010 in m2* 106,000 Office space turnover 2011 in m2 (estimate)* 150,000 Vacant space 2011 in m2** 210,000 Vacant space ratio (gif) 2011** 4.85 % Peak office rent city centre 2011 in /m Average office rent city centre 2011 in /m Net initial return in prime locations % % Retail space Hannover region in m2 1.8 million of which Hannover city in m2 843,000 of which Hannover city centre in m2 290,000 Peak retail rent city centre 1a location* in /m2 Retail, average rent city centre a location* 2011 in /m2 Net initial return in 1a locations % % *) Bahnhofstraße, Große Packhofstraße, Georgstraße * Peak rent city centre Ø rent city centre Ø rent city margin Ø rent periphery Ø rent office centre * Estimate Office space turnover** and vacancies in Hannover office market (in 1000 m²) * Location the Hannover region page 6 Driven by science and urban development * Office property market Hannover region page 16 Excellent results in the office property market 1* 2* * Total office space in Hannover = Hannover city plus Laatzen plus Langenhagen ** Vacant space refers only to Hannover city Logistics property market Available logistics space in ha Approx. 150 Logistics space turnover 2010 in m2 313,000 of which logistics rentals 2010 in m2 257,000 Logistics space turnover 2011 in m2 200,000 (estimate) Peak rents (new buildings with excellent 4.60 fit-outs and optimal transport connections) 2011 in /m2 Average rent 2011 in /m Net initial return prime buildings in prime 6.8 % % location 2011 Residential property market (Hannover city) Residential portfolio 2010 in housing units 290,100 Completed housing space 2010 in m2 38,200 Residential rent, new buildings 2011, peak in /m2 Residential rent, new buildings 2011, 8.50 average in /m2 Purchase price for owner-occupied apartments, 3,300 new buildings, peak group 2011 in /m2 Purchase price for owner-occupied apartments 2,380 in new buildings, average 2011 in /m2 Transaction volume turnover in residential 1,040 market 2010 in million Multiplier for apartment blocks/investment 12.7 properties, average 2011 Multiplier for apartment blocks/investment 14.8 existing blocks of flats, peak group 2011 Multiplier for apartment blocks/investment 19.0 new blocks of flats, peak group * Space turnover Vacancies (Hannover city only) * Estimate ** Rental and owner-occupied * Retail property market Hannover region page 28 Hannover well established in Top 10 for many years * Logistics property market Hannover region page 38 European gateway strong demand * Residential property market Hannover region page 48 Excellent market prospects for central localities 3* 4* 5* 3

3 Introduction 4 Focus on Hannover: a persuasive location This report has the purpose of presenting an up-to-date and accurate view of Hannover in terms of commercial properties and its prospects. Hannover region has taken on this challenge for the ninth time and, as in the past, is doing so in collaboration with private and public partners. As before, this report is prepared together with BulwienGesa AG. During 2011 the economic recovery again resulted in noticeable improvements to economic prospects, down to the regional level. Investors are again indicating their interest in core investments away from established top German locations something that stable and robust regional markets such as Hannover s are benefiting from. The demand for suitable properties is lively in all of Hannover s submarkets: J Office property market The office property market is picking up; market participants anticipate an overall turnover of 150,000 m² in The net lettable space turnover reached a record level of 130,000 m². Rents are either climbing in all areas or remain stable peak city centre rents are around J Retail property market: Hannover is one of Germany s Top 10 retail cities. Peak rents are up slightly to 185. The many transactions involving retail properties with high returns, and a demand for space in 1a locations which is difficult to satisfy, are evidence of the continued and unbroken attraction of the location, even internationally. J Logistics property market: Hannover region has a large and differentiated range of logistics areas and properties on offer for logistics organisations with high quality requirements. Space turnover in the first half of 2011 was somewhat slow but market participants point to a robust and dynamic demand for land available for immediate building with optimum location qualities or properties available for adaptation, with the consequence that over the year space turnover is expected to reach at least 200,000 m². J Residential properties: Demographically speaking, Hannover has excellent prospects: Hannover is expected to grow until 2030, with a concurrent demand for housing. At a national level the city is considered to be a worthwhile location for residential investments and project developments. Prime housing projects enjoy high levels of demand even during their development phase, with top-class areas available for development. Major real estate service providers consider the investment property market in Hannover to be excellent. J Hannover City 2020+: In late 2010, the urban development concept for Hannover city centre was agreed, providing a guideline for the coming years. The first phase to be realised is at the Klagesmarkt. The focus here is on improving the quality of the open space and encouraging people to live in an inner city urban environment. J Science, research and culture: Hannover region is nothing less than a top location in human and veterinary medicine as well as in engineering fields. New research facilities in these disciplines underpin the attractiveness and economic importance of science and research in Hannover. Clusters are developing; in turn attracting more companies and more jobs. The construction of what can only be described as a beacon of regional identity has commenced: by 2012 Herrenhausen Palace will have been reconstructed by the Volkswagen Foundation at its original historic site after its wartime destruction. The new building will provide a modern conference centre and museum behind its historic facade within one of Europe s outstanding baroque gardens. People who live in Hannover generally regard it as a haven of joy, full of art and culture; a place where bikini-clad girls sip colourful cocktails. Those outside of Hannover generally think of it as a concrete jungle, with the charm of a Ukrainian prefab housing estate, full of old men dressed in sacking and eating sausages. Both impressions are false. (Hannoversche Allgemeine Zeitung, ) 5

4 1* Location the Hannover region Driven by science and urban development Hannover region is the state of Lower Saxony s top location for business and science. The combination of excellent location conditions, highly competitive and innovative businesses and qualified employees provides a robust business platform, and forms the basis for positive city and regional development, new jobs and a corresponding demand for properties. The stable and diverse property market offers excellent working conditions and space for life and culture. Building work starts in Herrenhausen the Volkswagen foundation is investing 20 million in reconstructing the palace destroyed in WW2. Investments in science and research are honing Hannover s profile as it competes with other metropolitan regions. Hannover enjoys national renown as a place for science and research thanks to the Hannover Medical School (MHH), the University of Veterinary Medicine Hannover (TiHo) and Leibniz University. The University of Applied Sciences and the long-established»these scientific beacons are embedded in a growing network of state and private research establishments.«and highly regarded Hannover University of Music, Drama and Media also offer highly acclaimed teaching and training opportunities. In the private educational sector the Leibniz Academy, the FHDW University of Applied Sciences for Business as well as the GISMA Business School provide additional scientific training opportunities. These scientific beacons are embedded in a growing network of state and private research establishments which continuously attracts new key players, increasing the location s standing still further. The regional economy benefits over the long term from investments in the research sector and in the construction of new medical centres. Hannover as a scientific location enjoys a robust economic position. The Klinikum Region Hannover, the region s new flagship hospital, and Hannover Medical School are two of Lower Saxony s 20 largest business enterprises (measured in terms of value generated*). > 260 million investment volume in Hannover as a research location up to * Source: NordLB 2010 Lower Saxony s 100 largest companies.

5 1* In June 2011, the MHH opened the Paediatric Research Centre, an investment of 18 million. 250 scientists will undertake interdisciplinary research activities in 4,600 m² of space under one roof. A partnership project run by Hannover Medical School (MHH) and the Helmholtz Centre for Infection Research (HZI) is building the new Clinical Research Center Hannover (CRC) on the grounds of the Fraunhofer ITEM. Completion is planned for The goal is to accelerate the process of creating new drugs and diagnostics from early clinical studies. University and campus as factors of success Hannover s various university colleges and locations continue to develop: in their direct environs the arrival of research and business organisations helps extend the campus structures, complementing each other not only infrastructurally but also thematically. J The TiHo is expanding in the Kirchrode district and moving more of its institutes and research from its historical site between Hans-Böckler-Allee and Bischofsholer Damm in the Bult neighbourhood to new builds on the new campus at Bünteweg. J The Medical Park, directly adjacent to the MHH, is already host to renowned international research facilities such as the International Neuroscience Institute (INI), and offers room for expansion to the west of the Stadtfelddamm. J Leibniz University is currently investing in its campus at Schneiderberg in Hannover s Nordstadt neighbourhood, and in the medium term intends to invest at its site in Garbsen, where for example the Production Technical Centre Technology Park Hannover (WTH) in the Marienwerder district. The site is already home to the LZH (Laser Centre Hannover) and the IPH (Institute for Integrated Production Hannover). Media and communications sciences around Planet MID in Expo-Park The Hannover University of Applied Sciences has successfully revived a building legacy from the former EXPO The Expo-Park to the south of Hannover city has involved investments of 9.3 million in the purchase and conversion of the spectacular MID pavilion, with official reopening by premier David McAllister in June Planet M, built by the Bertelsmann Group, has been rechristened Planet MID. The unusual architecture harks back to the EXPO 2000 World Exposition and is the new unmistakable landmark of the University of Applied Science Media and Design. In the future, creative people will be educated in the faculty of media, information and design. The University of Applied Sciences is providing sustainable support to the media and design activities concentrating around the Expo Plaza. New research buildings No.* Building Location Institute/company Space Investment sum Clinical Research Center Hannover Research Laboratory for Infection Medicine Research Centre for Animal Vaccines Hannover Institute for Technology (HiTec) Lower Saxony Centre for Biomedicine Paediatric Research Centre Medical Park Groß- Buchholz Bünteweg Fraunhofer Institute for Toxicology and Experimental Medicine, MHH, Helmholtz Centre for Infection Research University of Veterinary Medicine Status 6,000 m2 40 million Under construction, completion ,800 m2 16 million Detailed planning phase, completion 2014 Bünteweg Boehringer-Ingelheim 19,000 m2 40 million Under construction, completion end 2011 Campus Schneiderberg Medical Park Groß- Buchholz Campus MHH Leibniz University 3,000 m2, of which 1,500 m2 refurbishment Leibniz University, University of Veterinary Medicine, Laser Centre Hannover (LZH) Animal clinics Bünteweg University of Veterinary Medicine Relocation of mechanical engineering institute/ extension to production technical centre (PZH) Centre for Biomolecular Drug Research Centre for Zoonosis Research LU Campus Garbsen Campus Schneiderberg Bünteweg 30 million Detailed planning phase, completion ,000 m2 34 million Detailed planning phase, completion 2013 MHH 4,600 m2 18 million Completion May ,000 m2 45 million Completion April 2011 Leibniz University n.a. n.a. Planning phase, construction Leibniz University 2,200 m2 20 million Detailed planning phase, completion 2013 University for Veterinary Medicine 3,800 m2 20 million Detailed planning phase, completion 2014 (PZH) is located. * Numbers refer to map on page 14. J In addition, the city of Hannover is continuing to develop its Science and Spectacular architecture for creative people University of Applied Science will be using the EXPO 2000 pavilion for its media, information and design faculty. 8 9

6 1* At its campus on Bünteweg, the University of Veterinary Medicine provides animals with first-class medical care and scientists with an attractive environment for research centres. Innovation as a factor of success: Science and Technology Park The Science and Technology Park Hannover will by early 2012 provide land for new buildings dedicated to companies oriented towards knowledge-intensive engineering sciences. The brownfield site to the north-west of Hannover will see investments of 6.6 million during the course of the year in the remediation, water body restoration and landscaping of the site by spring 2012 a landscaped park will have been created with a total of 20 ha providing plots for research centres and companies in science-related fields. The space will have a campus character, providing the science park with its own unique identity within an attractive work environment. Overall approx. 100,000 m² of land will be available for building. Room for creative thinking Hall 96 on the Hanomag grounds is the site of Hannover s new centre for start-ups and creative industries. Business promotion as a factor of success: Focusing on future industries The joint business enterprise company of Hannover City and Region, hannoverimpuls GmbH, will be making approx. 9,000 m² of new office, laboratory and workshop spaces available by 2013 to start-ups and young companies. The public purse is creating space for future focus industries: J Recently established companies in creative industries will have a focal point at the Hanomag grounds. J Places of training for design and media will concentrate in buildings at the Expo-Park immediately adjacent to Planet MID, CampMedia and MultiMedia BBS (vocational training school). J Technology-oriented start-ups will be offered appropriate space options at Marienwerder Technology Centre in the Science and Technology Park Hannover. The overall goal is to boost focus industries in Hannover bundling additional capital and know-how in the Hannover region. Tomorrow s city centre Hannover City concept The way cities are perceived depends on their uniqueness, their urban spaces and their architectural qualities. Hannover has kicked off a pioneering process of dialogue and planning for Hannover s inner city (Hannover City 2020+), culminating in the conceptual phase of this inner-urban development process at the end of 2010.»In general terms, the approach is to promote mixed usage and create modern housing zones in the city s very centre.«the concept presents proposals for the further development of central areas of the inner city in terms of space and functionality, boosting individual quarters and honing the inner city s look and feel. The concept offers a raft of design ideas on ways to achieve a lively, pleasant and attractive city. The concept seeks to consolidate and extend existing qualities, including the creation of new and attractive homes in the inner city area. Particular focuses of attention are public areas and roads, while the river Leine, as a natural waterway, is to be given more emphasis within the urban environment. The competition for ideas included much acclaimed proposals for the Leibnizufer/ Hohes Ufer sections along the river and for Friedrichswall, am Marstall, Klagesmarkt and Köbelinger Markt. In a second planning phase a number of international teams of architects and planners further developed these ideas in greater detail. These proposals acted as inputs for the final concept. In general terms, the approach is to promote mixed usage and create modern housing zones in the city s very centre. The inner city concept does not seek to dictate development flows. Nonetheless it is now apparent that the Klagesmarkt to the north of the city centre has become the initial focal point. The implementation of the winning design by architects Astoc & jbbug envisages the creation of a much enhanced public area at Klagesmarkt on the site of today s car park, with two blocks of housing in a semi-public mixed-use zone at ground level. Along the Otto-Brenner- Straße, opposite the trade union building, the design includes an elevated urban feature in the form of a high-rise section. This building could offer space for housing as well as offices

7 1* Tourism, fairs and congresses as a factor of success Hannover s status as a destination for hotel guests is being boosted by investments in key properties/projects for tourism, culture and the congress sector, while concurrently improving the quality of life at a local level. The city of Hannover attracted almost 2 million overnight guests during 2010, plus a further approx.»an especially attractive element is the diversity of cultural life with many arts festivals, local fests, theatre highlights and concerts.«1.5 million overnight visitors in the surrounding region. These figures have climbed sharply since An especially attractive element is the diversity of cultural life with many arts festivals, local events, theatre highlights and concerts. Major attractions are above all the Hannover Adventure Zoo (1.6 million visitors 2010) and the Royal Gardens of Herrenhausen (more than 400,000 visitors in 2010). The region includes gems such as the Steinhuder Meer lake and the charming landscape of the Deister ridge. One vital new attraction in the congress tourist industry portfolio will undoubtedly be the future Herrenhausen Palace. The Volkswagen foundation is investing 20 million in a reconstruction of the original buildings (destroyed in WW2) including integrated underground congress facilities. Scientific symposia and congresses are scheduled here from The palace wing will be used as a museum. The foundation stone laying ceremony in June 2011 marked the commencement of work on a building project which has been long awaited, with construction taking place on the exact location of the original building. Its outstanding position at the head of the centrepiece Great Garden, one of Europe s prime baroque gardens, means the building is of cardinal importance for the city s urban identity. Investments are planned from 2012 onwards in the Sprengel Museum one of today's flagship museums of modern art of the 20th and 21st centuries million are earmarked for extending the exhibition areas. From 2014 onwards, more A cultural highlight attracting many visitors the Kleines Fest im Großen Garten in the Royal Gardens of Herrenhausen. room will have been created for showcasing in particular the works of Kurt Schwitters and Niki de Saint Phalle. The Hannover Congress Centre dominated by the dome of the Kuppelsaal at the Stadtpark gardens and the Deutsche Messe will also both be investing many millions in the years ahead in both refurbishment and new builds (office building 2 and south entrance to the exhibition grounds). Conversion as a factor of success: keynote for the future The reutilisation of brownfield sites has been a truly important issue for Hannover s property market in the years past, repeatedly identifying options and presenting exemplary models for developing new robust property concepts within an urban context. Some of the best examples are located along the Podbielskistraße: the installation of offices and housing has successfully revived the former company grounds of traditional Hannover business organisations Bahlsen, Pelikan, Geha and Grammophon. These sites are now firmly established and indispensable centres for living and working in the city. Other disused localities are moving into focus: the former industrial sites operated by Varta in Marienwerder and Continental in Limmer will, in the next few years, offer highly attractive areas for corporate and private use (Science and Technology Park Hannover and Wasserstadt Limmer respectively). The revitalisation of the Ha- New entrance artist's impression of new southern entrance to the exhibition grounds. nomag grounds in Linden has dramatically the Pelikan Quarter are now being closed picked up pace in the last two years creating space for living, retail and offices, quality apartment blocks. by the Gundlach organisation with prime- now and in the future. Former railway land is providing much needed space in The area surrounding the Lower Saxony the Südstadt, creating options for shopping and small-scale industrial uses on tive revivals at brownfield sites Strabag state capital also has examples of attrac- the former Südbahnhof site, right in the for example has turned the former Cocacentre of town. The move of the MHH Cola site in Ronnenberg-Empelde into an dermatological clinic will create room in attractive centre for shopping and offices. Linden, directly on the banks of the river Ihme, for attractive inner city homes at the water s edge, while the final gaps in 12 13

8 Current developments in submarkets Hannover See map excerpt on right City 2020+: Detailed development areas Klagesmarkt Marstall 16 1 km 2 km 3 km Research and science 1 Clinical Research Center Hannover 2 Research Laboratory for Infection Medicine 3 Research Centre for Animal Vaccines 4 Hannover Institute for Technology 5 Lower Saxony Centre for Biomedicine 6 Paediatric Research Centre 7 Planet MID 8 Animal clinics 9 Relocation of mechanical engineering institute and extension to PZH 10 Centre for Biomolecular Drug Research 11 Centre for Zoonosis Research Offices Retail Park Ronnenberg-Empelde Kröpcke-Center Furniture stores at Altwarmbüchen Residential 18 An der Gartenbauschule 19 Büntekamp Kirchrode 20 Former dermatological clinic, Linden 21 Mosaik Eilenriede 22 Pelikan Quarter 23 zero:e park Conversion areas 24 City development City (see map excerpt on right) 28 Klagesmarkt 29 Köbelinger Markt 30 Leibnizufer/Hohes Ufer 31 Marstall Tourism, fairs and congresses 32 Hannover Adventure Zoo 33 Hannover Congress Centre 34 Herrenhausen Palace Logistics 30 Leibnizufer/ Hohes Ufer 29 Köbelinger Markt Former Continental factory, Limmer 35 VWN-Amarok logistics centre Offices (Wasserstadt) 36 Air Cargo Terminal 12 HDI-Gerling insurance group 25 Former Hanomag grounds 100 m 200 m 300 m 13 Gutenberghof 26 Former goods yards Hannover-Süd (Südbahnhof) Retail 27 Former Varta factory, Stöcken (Science Airport City ring and arterial roads Detailed development areas For more information visit: 14 Retail Park Südbahnhof and Technology Park Hannover) Exhibition grounds Pedestrian precincts Central station

9 2* Office Property Market Hannover region Top results in the office property market The economic upswing was the turning point for Germany s office property markets. Space turnover returned to above average levels, vacancies stabilised and peak rents began to climb again. Hannover expects to achieve a record turnover in Letting turnover was excellent at over 85,000 m2 in the first 6 months, with 2011 overall expected to reach a space turnover of 150,000 m2. This would mark a substantial plus in value year on year of 106,000 m². Forecasts of letting turnover are actually for 130,000 m2 a record in Hannover. The share of owner-occupiers has dropped»the forecast for letting turnover is 130,000 m2 a record in Hannover.«previous years were characterised to a greater extent by major developments for owner-occupation (e.g. Talanx and HDI-Gerling in Lahe, 51,000 m2 during report year 2009). Peak rents on the rise, stable city margins The peak rent in Hannover city centre is on the up. Whereas in the middle of last year values were expected to remain stable throughout the year at 12.50/m2, this was corrected upwards to 12.80/m2 after analysis of actual results. This peak rent is also forecast for Peak rents at office centres and around the city periphery are expected to remain stable during 2011 or with a slight upwards trend in the range of 10 to Stocks and new builds are differentiated here new builds in all locations can also realise higher rents compared with the peak value and higher multipliers. The average rents developed stably with a slight upwards tendency in all locations (maximum + 2 %), and in the city centre they are at 9.60/m2. At city margins they reach 8.40/m2, peripheral locations and office centres are at a level of around 7.10/m /m2 office peak rent in the city centre At the end of the year 1,800 Talanx and HDI-Gerling employees move into their new office building in Lahe

10 Selected office market transactions 2010/2011 2* Larger offices in demand Hannover is again experiencing a resurgence in demand for larger office areas. Since mid-2010, several tenancy agreements have been concluded for larger premises in excess of 2,000 m². The majority of the rental contracts, however, continue to be for areas of up to 300 m², usually for business-related service providers. However, the proportion fell this year. Only some 50 % (2010: 60 %) of rental agreements, representing 12.5 % (2010: 25 %) of letting turnover, actually referred to this type of tenancy category during the first six months of Around half of space turnover was achieved with contracts exceeding 1,000 m² (2010: 33 %); the remainder (37.5 %) was for contracts covering areas of between 300 and 1,000 m² (2010: 41 %). Office rentals and owner-occupiers since mid-2010 Building/address Tenant/owner-occupier Rental space office (gif) Office location Hamburger Allee 25 Hannover state capital 15,500 m² City centre Karl-Wiechert-Allee 10 Heise Media Gruppe (owner-occupier) 14,250 m² Roderbruch office centre Röselerstraße/corner of Osterstraße Deutsche Hypo 10,500 m² City centre Aegidientorplatz 2a Deloitte 10,000 m² City centre Johannssenstraße 10 Hannover state capital 6,800 m² City centre Hildesheimer Straße NordLB 4,700 m² City margin Haus der Wirtschaftsförderung, Vahrenwalder Straße 7 Hanomag grounds, Hall 96 centre start-ups and creative industries 1912 saw the construction of a representative HQ for Continental AG at Vahrenwalder Straße 7, designed by Peter Behrens. 100 years later, from March 2012, the business promotion organisations of Hannover State Capital and Region Hannover will be moving into a completely refurbished building under a single roof. City and Hannover region 4,000 m² City margin and affiliates Hannoverimpuls GmbH 3,000 m² Hanomag grounds Am Klagesmarkt Deutsche Apotheker- und Ärztebank 2,700 m² City centre Goethestraße GISMA Business School 2,000 m² City centre Hildesheimer Straße 17 Region Hannover 1,700 m² City margin Building/address Quarter Year Vendor Buyer Building space Grammophon office park Q EH Estate Management GmbH Activum SG Capital Management/Stam 19,500 m² Podbielskistraße Europe Marinebau Sorst grounds, Schulenburger Landstraße/ Voltmerstraße Berliner Allee 13 Q Bertram Projektmanagement GmbH Q Mevaco GmbH Aragon GmbH 2,600 m² Deutsche Rentenversicherung Braunschweig-Hannover (DRV) Hannover s office market, with total office letting space of approx. 4.6 million m² (gif method*) comprises the city of Hannover itself and the two neighbouring communities of Laatzen and Langenhagen which border the state capital to the south and north respectively, and have many close functional ties with Hannover. Hannover s office market can be subdivided as follows (see also office projects map, page 20): 4,600 m² Gradestraße 18/20 Q Deutsche Telekom AG Ashtrom Properties/Harel 26,000 m² Insurance Investments List Forum, Wöhlerstraße 42 Q HANSA immobilia n.a. 8,243 m² Industrieweg 21 Q Deutsche Telekom m² Immobilien GmbH n.a. Brühlstraße Q Ideal Versicherung Hannoveraner Investor 4,040 m² Am Klagesmarkt ZURICH-Gruppe Deutschland BAUM Unternehmensgruppe 9,000 m² Karl-Wiechert-Allee 4 Q TUI AG Wealth Management Capital Holding GmbH 26,800 m² Former HQ Hannoversche Leben (Karl-Wiechert-Allee 10) Q TMW Pramerica Property Investment GmbH EuroYield Heise Medien Gruppe 17,000 m² RUND-CARRÉ Q HSBC Trinkaus Real Estate Corestate Capital AG 13,900 m² Rotenburger Straße 7 Q Institutional owner Darimex GmbH 1,700 m² Osterstraße 31/Röselerstraße 2 Q ZVK Zusatzversorgungskasse Bertram Projektmanagement 12,000 m² (Hannover city) GmbH Schillerstraße Archon Group Deutschland Investor from Munich n.a. Hildesheimer Straße BAUM Unternehmensgruppe ZdK Hamburg (National organisation of German consumer associations) 2,000 m² City centre, bordered by the city ring road: This area comprises Georgstraße, Georgsplatz, Raschplatz, Friedrichswall, Aegidientorplatz and Schiffgraben City centre margin locations and arterial roads: High-quality office locations situated to the north and south-east of the city centre along the major arteries of Vahrenwalder Straße in the north, Podbielskistraße to the north-east, Marienstraße/Hans-Böckler-Allee to the east and Hildesheimer Straße to the south. Roderbruch office centre/karl-wiechert-allee: Sites and facilities of Hannover Medical School and the adjacent Medical Park plus several owner-occupied office blocks of corporations and groups active in finance, insurance and tourism. Lahe office centre: Located in north-eastern Hannover and boasts excellent transport connections, in particular to the A2 motorway and LRT. A number of rezoning and restructuring activities offer considerable scope for further developing the potential here. The EXPO park: The site of Expo 2000 has attracted many high-quality office facilities with space for the IT, design and media sectors, in some cases in original EXPO buildings. On nearby Kronsberg (Kattenbrookstift) are outstanding examples of modern architecture. The city of Laatzen: Office space here is clustered around Laatzen city centre. Immediately adjacent to the Hannover Exhibition Grounds with excellent public transport and road links (A 37/A 7 motorways). Langenhagen city: Office real estate mainly in town centre and area around Langenhagen-Mitte interurban railway station. Other office buildings erected in Godshorn Business Park area. Excellent traffic connections to motorway network and airport. * According to the standards defined by the Gesellschaft für immobilienwirtschaftliche Forschung e.v

11 Office projects Map of office projects, city centre See map excerpt on right km 2 km 3 km Base map: ATKIS data by LGN 20 New builds Completed 12 Detail planning phase GDA German HQ Refurbishment Completions Windwärts Energie office building bauwo Business Center Podbi Stichweh Leine park (1 st building phase) Office building Gutenberghof HDI-Gerling HQ Under construction Office building 2, Deutsche Messe AG, exhibition grounds Office project Osterstraße (Deutsche Hypo) Office project Aegi (Deloitte) Office building Große Packhofstraße (former Erdmann men s clothing retailer) Lower Saxony justice centre Stichweh Leinepark (2 nd building phase) Stichweh Leinepark (3 rd building phase) Customer advisory centre Deutsche Rentenversicherung Admin building Region Hannover Under construction Office project Klagesmarkt (former ZURICH insurance building) Haus der Wirtschaftsförderung (former TCH) Office project Nordfelder Reihe 7 Hall 96 (centre for start-ups and creative industries) 19 Volkshochschule Hannover 29 Hannover job agency 8 City Centre Langenhagen/West Passage 20 Office building Deutsche Rentenversicherung Detailed planning phase Stadthöfe Langenhagen aha admin building (waste management for Braunschweig-Hannover Medium-term plans 30 Sparkasse Hannover central offices Medium-term plans 25 Hannover region) 21 Office project Pferdeturm (former AOK) 31 Office project Georgplatz (Deloitte) 11 Technology centre Marienwerder (TCM) 22 Office project Pferdeturm (former car showrooms) 100 km 200 km 300 m 23 Communications centre TÜV Nord LRT City centre Office centres Airport Central station City ring and arterial roads Central station City border City margin and arterial roads Office centres Laatzen, Langenhagen Exhibition grounds Pedestrian precincts

12 2* Clear advantages for B-cities B-cities such as Hannover, also referred to as regional centres, enjoy some clear advantages compared with Germany's top city locations according to leading researchers: B-cities are characterised by rental ratios being less dependent upon economic developments, stable rents and competitive rates of return. In the past, many investors have concentrated on core properties in major business centres in particular because of the higher rental rates achievable, good growth prospects and apparently higher security. Today, however, international investors are now taking a very close look at stable regional markets away from the hotspots. In the view of IVG researchers, regional centres actually have an advantage, provided they can compensate for the disadvantage of a smaller market volume with better economic and demographic prospects and can draw upon sufficient market transparency. Hannover s ranking in the latest IVG office market survey directly after the seven largest office markets in Germany underscores the fact that the re- gional property market on the river Leine does boast these advantages. Building stock with development potential There is potential for future project development amongst those office buildings constructed during the post-war phase, from the 1950s to the 1970s, properties that are frequently located in the city centre or along arterial roads. In the future these will frequently be subject to acquisition followed by demolition and new build. An example of this is the purchase of the former VGH regional HQ at Aegidientorplatz. The original building, built in the 1960s by famous Hannoverian architect Dieter Oesterlen, has a central location directly next to the Theater am Aegi: Quantum, the investor, plans to demolish the 7-storey building for its main tenant (Deloitte) and construct a new building offering 12,000 m² gross area. Completions in Hannover office market (in thousand m²) * New build completions Refurbishments * Forecast 2012* Completions at high level Following on from 2009, the year marking a peak for completions (approx. 74,000 m²), 2010 represented a breathing space. Only 26,000 m² office space were completed as a result of the rescheduling of a number of major new builds, and their readiness for occupation being delayed to this year. Consequently, 2011 is anticipated to achieve an impressive value for completions approaching approx. 79,000 m². Key completions/new office buildings No.* Building Address Investor, developer Lettable space office (excluding service/storage areas) Office building Windwärts Energie bauwo Business Center Podbi Stichweh Leinepark (1 st building phase) Office building Gutenberghof Completed Hanomaghof 1 DIBAG Industriebau AG 3,000 m² new build and partial refurbishment Podbielskistraße 269 Wunstorfer Straße/ Färberstraße Berliner Allee/ Gutenberghof bauwo Grundstücks AG Stichweh Leinepark GbR Lower Saxony pension fund for doctors 3,500 m² plus Secur self-storage centre 3,200 m² office 950 m² retail 7,950 m² of which 6,300 m² owner-occupied Status Completion Autumn 2010 Autumn 2011 Autumn 2011 Autumn 2011 Talanx and HDI-Gerling Riethorst HDI-Gerling 51,000 m² owner-occupied Autumn 2011 Office refurbishments Deutsche Rentenversicherung advisory centre Admin building Region Hannover Berliner Allee 13 Hildesheimer Straße 17 Bertram Projektentwicklung GmbH BAUM Unternehmensgruppe 4,600 m² Spring ,500 m² office 200 m² retail Spring 2011 * Numbers refer to map on pages 20/

13 2* From 2012, Hamburg investment company Quantum plans to construct a nine-storey new building next to the Theater am Aegi for its future tenant: accounting firm Deloitte. Hannover planning office BKSP beat international opposition in the architects competition. The West police station occupies a section of the first building phase of Stichweh Leinepark in Hannover- Limmer. New building or demolition and new building No.* Property Address Investor, developer Lettable office space (excluding service/ storage areas) Office block 2, Deutsche Messe AG Hall 96 (centre for start-ups and creative industries) City Centre Langenhagen/Westpassage Stadthöfe Langenhagen aha admin building (waste management for Hannover region) Technologiecentrum Marienwerder (TCM) German HQ GDA Office project Osterstraße (Deutsche Hypo) Office project Aegi (Deloitte) Retail building Große Packhofstraße (former Erdmann building) Lower Saxony justice centre Stichweh Leinepark (2 nd phase) Stichweh Leinepark (3 rd phase) Exhibition grounds Hanomag courtyard/ Göttinger Straße Marktplatz Konrad-Adenauer- Straße 15 Karl-Wiechert-Allee 60 C Science and technology park Hannover Hildesheimer Straße 178 Osterstraße/Röseler Straße Deutsche Messe AG (DMAG) DIBAG Industriebau AG Hanseatische Betreuungs- und Beteiligungsgesellschaft (HBB) Meravis group aha waste management services Hannover region Hannoverimpuls GmbH Gemeinschaft Deutsche Altenhilfe Bertram Projektentwicklung 3,700 m2, owner-occupation 4,000 m2 new building and partial refurbishment 1,895 m2, offices and doctors surgeries 1,000 m2 offices and doctors surgeries 2,000 m2 owner-occupation 4,000 m2 office and laboratory space Status Completion end 2011 Completion 2012 Completion 2012 Completion 2012 Completion 2012 Completion ,500 m2 Completion 2012 owner-occupation 12,000 m2 Building start 2012 Aegidientorplatz 1a Quantum Immobilien 10,000 m2 Building start 2012 Große Packhofstraße Augusten-, Ferdinand- and Hinüberstraße Wunstorfer Straße/ Färberstraße Wunstorfer Straße/ Färberstraße Development Partner AG 1,200 m2 offices, 2,700 m2 retail Building start 2012 State of Lower Saxony 18,000 m2 Building start 2012 Stichweh Leinepark GbR Stichweh Leinepark GbR 3,200 m2 offices and doctors surgeries 3,000 m2 offices and retail Building start 2012 Building start 2013 New building, or demolition and new building No.* Property Address Investor, developer Lettable office space (excluding service/storage areas) Volkshochschule Hannover community college Office building Deutsche Rentenversicherung Braunschweig-Hannover Office project Pferdeturm (former AOK building) Office project Pferdeturm (former car showrooms) Communications centre TÜV Nord Refurbishment/revitalisation Office project Klagesmarkt (former ZURICH insurance building) Haus der Wirtschaftsförderung (former TCH) Office project Nordfelder Reihe Under construction Detailed planning Planning medium-term Status Am Hohen Ufer State capital Hannover 7,000 m2 Completion 2013 Laatzen, Lange Weihe 2 Hans-Böckler-Allee Deutsche Rentenversicherung Braunschweig-Hannover bauwo Grundstücks AG 18,500 m2 Owner-occupation 10,000 m2 Open Hans-Böckler-Allee State capital Hannover 12,500 m2 Open An der Wollebahn TÜV NORD Gruppe 3,000 m2 Open Am Klagesmarkt 29/31 Vahrenwalder Straße 7 Nordfelder Reihe BAUM Unternehmensgruppe 4,500 m2 office 1,200 m2 retail Completion 2014 Completion 2012 union boden GmbH 6,560 m2 Completion 2012 Gundlach GmbH & Co. KG Hannover job agency Brühlstraße Job agency 10,000 m2 owner-occupation Sparkasse Hannover HQ Raschplatz Sparkasse Hannover 27,500 m2 owner-occupation Office project Georgstraße (Deloitte) Georgstraße 52 Quantum Immobilien 5,000 m2 office 2,000 m2 retail 1,400 m2 Completion 2012 Completion 2013 Building start 2012 Building start 2014 * Numbers refer to map on pages 20/21 Under construction Detailed planning * Numbers refer to map on pages 20/

14 2* Hanomag Grounds: Windwärts Energie GmbH moved into new premises at Hanomaghof 1 in December 2010 Vacancies at low level in city The vacancy rate in Hannover city at the end of 2010 was 4.95 %, substantially below the average for B-cities overall (7.1 %). In 2011, BulwienGesa actually forecasts a slight downswing in the number of vacancies, with the rate dropping to 4.85 % because of the excellent turnover level. More office employees The number of office employees has been rising continuously in Hannover city since As a consequence there is a steady additional demand for modern office space. The number of projects in the pipeline for Hannover until 2015 to date added up to approx. 160,000 m², with 75 % of the volume being composed of new builds compared with completions in the past, there is still room here for project developments. This could in turn again mean higher peak and average rents. Older building stock will, however, in the opinion of market participants, not benefit from the improving market even good locations cannot make up for poor quality, resulting in empty buildings and creating structural vacancies which are a burden on the market. 150,000 m² office space turnover 2011 Hannover office tenants especially happy Germany s happiest office tenants are in Leipzig according to a recent SEB-Bank survey; closely followed by Hannover, Berlin and Munich. Hannover gains points in particular because of rent costs, access to public transport and in terms of general satisfaction (SEB Office Tenant Almanac 2011). Office space portfolio for Hannover region, end 2010 (in thousand m²) GFA Lettable space (gif) Total market Hannover 5,745 4,596 Hannover city 5,340 4,272 Langenhagen and Laatzen GFA: Gross floor area gif = Method according to the Gesellschaft für immobilienwirtschaftliche Forschung (gif e.v.) Change in office employees (in thousands) Hannover city Surrounding area * * * * Estimate/forecast 2 nd place in tenant satisfaction ranking for Germany by SEB-Bank Fully refurbished Deutsche Rentenversicherung advisory centre on the Berliner Allee

15 3* Retail Property Market Hannover region Hannover well-established in the Top 10 for many years Hannover is one of Germany s ten most sought-after and expensive retail locations. Hannover city centre has remained a major attraction for many years. Sought-after: persuasive prime locations The good level of demand for space during the first six months of 2011 saw the peak rent rise in the three top locations of Georgstraße, Bahnhofstraße and Große Packhofstraße to up to 185/m². In the Karmarschstraße rents are slightly lower at up to 160/m². In a ten-year comparison, the peak rent is up by approx. one quarter. The dynamics of the property economy are proven by surveys and figures: J Top retail real estate service providers such as Jones Lang Lasalle and Comfort place Hannover amongst the Top 10 in terms of peak rents and rental growth since J Rents in the Bahnhofstraße have experienced particularly dynamic development (+ 46 %), although the Georgstraße (+ 29 %) and the Große Packhofstraße (+ 20 %) have also undergone excellent rental growth since 2001 (JLL). J In a comparison of cities, Hannover has a centrality index of almost 31 %, above the average of the top grouping of German metropolitan centres with more than 500,000 inhabitants (GfK). J Retail turnover per capita is predicted to be over 7,000 in In absolute terms, the current year is expected to generate around 3.7 billion turnover (JLL). J In the Engel & Völkers Tuesday and Saturday surveys in April 2011, the Bahnhofstraße and the Georgstraße were again amongst Germany s Top 10 shopping streets, as in previous years. In the Tuesday survey, the Bahnhofstraße actually came in third, despite inclement weather, close behind Munich s sunnier Kaufinger and Neuhauser streets. International outlets to the fore All of Germany s key shopping chains and retailers are represented in Hannover city centre. However, Hannover is increasingly the focus of expanding international organisations: J The Spanish textile chain desigual is opening a shop at no. 8 Bahnhofstraße in autumn 2011 (1,160 m²). 185 /m² peak retail rent for city centre 28 One of Hannover region s largest shopping centres is located directly adjacent to the station and is a major attraction: the Ernst-August-Galerie, offering approx. 30,000 m² retail space, with approx. 150 outlets over three storeys, approx. 50 % of which are in the fashion business. The mall is operated by ECE Projektmanagement. 29

16 Retail in the city centre J Primark of Ireland is investing in the former SinnLeffers department store building on the Osterstraße (9,000 m²) for owneroccupation, opening in December J American outlet specialist TK Maxx (4,800 m², inaugurated in October 2010) and J Swedish label Gina Tricot (550 m², March 2011) is moving into the former Karstadt store at the corner of Große Packhofstraße/Osterstraße. Transaction market in demand Market participants consider transactions in Hannover s top locations to be very attractive and very much in demand. According to Jones Lang LaSalle, peak properties have gained almost a third in value over the course of the last ten years. Georgstraße and Bahnhofstraße had particularly stable factors in their favour, with multipliers of up to 19.5 times the gross annual rent. Major transactions up until the end of 2010 were the acquisition of the SinnLeffers store on Osterstraße by Primark for owneroccupation and the sale of the Karstadt sports store in the Große Packhofstraße to Redevco. 27 Frequency and franchising degree Street Peak rent /m² Franchising degree* Pedestrian frequency** Tuesday/h Pedestrian frequency** Saturday/h Georgstraße % 6,027 8,459 Bahnhofstraße % 6,590 7,641 Große Packhofstraße % 2,711 5,056 Karmarschstraße % No survey because of Kröpcke building work Source: * Jones Lang LaSalle, ** Engel & Völkers, April m 100 m 150 m Retail indices Base map: ATKIS data by LGN Purchase power index Turnover index Centrality index Project development 2010/2011/2012 Shopping centres/arcades/malls Outlets (relocations/extensions/ 1a locations (relevant to retail) 1 Das Depot (until end 2011) 13 Ernst-August-Galerie (mall) conversions) Pedestrian precincts Hannover Hannover Hannover Hannover Hannover Hannover 2 desigual 14 Galerie Luise (arcade) 25 Christ 3 dm health and beauty store 15 Kaufland supermarket 26 Mustang Old town city Region city Region city Region 4 5 Eckerle men s fashion (from 2012) Edeka Aktive supermarket Kröpcke-Passage (arcade) Niki-de-Saint-Phalle-Promenade Nespresso Wormland Multi-storey car park/car park Esprit 18 Promenade in the central station 29 Donna LRT 7 Gina Tricot Large retail outlets Catering (relocations/extensions/ Central station/long-distance Peek & Cloppenburg 19 C & A conversions) trains Primark 20 Galeria Kaufhof at Ernst-August-Platz 30 Café Mövenpick 10 Reno 21 Galeria Kaufhof at the Marktkirche 31 Jim Block TK Maxx 22 Karstadt 32 Markthalle (Gosch Sylt) zero 23 Karstadt Sport 24 Saturn Source: GfK 30 Note: The retail indices cannot be directly compared along the time axis. 31

17 3* Investment in historical facade reconstruction at the corner of Georgstraße with Große Packhofstraße. Kröpcke gets a new face; the first building phase of the Kröpcke-Center refurbishment will be completed by the end of Kröpcke-Center sharpens up Hannover s largest inner city centre building site, the new Kröpcke-Center, is approaching finalisation. The first building phase of the Kleihues + Kleihues design for the conversion, which commenced in March 2009, is scheduled for completion by the end of 2011 and already stands out as an example of modern, yet timeless architecture. The rough concrete facade of its predecessor is being replaced with glass and natural stone. Centrum, the Düsseldorf-based project developer, is totally revamping the central building in two phases to create a modern department store offering around 16,000 m² retail space. As the second phase, the old office tower is to be completely demolished by The work represents an overall investment of some 200 million. The anchor tenant remains Peek & Cloppenburg (after completion with 10,000 m²), moving into an initial area of 5,000 m² in the new sharp and edgy corner section. Kröpcke pivotal city centrepiece The plaza at the intersection of Hannover s top locations, the Georgstraße, Bahnhofstraße and Karmarschstraße, has become much more attractive thanks to the completion of the first building section around the sharper edge of the new Kröpcke building. The city has synchronised the renewal of the paving to match building progress. More work is obvious on buildings directly adjacent and nearby. Examples include Wormland, investing in a facade refurbishment in summer 2011 and»in effect, the entire area around Kröpcke has gained from this architectural upgrade and urban rejuvenation.«a total revamp of its sales outlet opposite (reopening October 2011). The former Magis building (anchor tenant H&M) has hosted new stores for Christ and Mustang since the end of The Café am Kröpcke directly on the plaza is the site of the first Jim-Block restaurant (Block- House group) outside of Hamburg, opening in October after refitting next to Mövenpick restaurant. Virtually next door, the corner of the 1a location Große Packhofstraße has seen investments in a historical facade reconstruction. In effect, the entire area around Kröpcke has gained from this architectural upgrade and urban rejuvenation. Georgstraße is still inviting All market participants see Georgstraße as offering stable and high levels of demand, with some 70 outlets between Nordmannpassage and Windmühlenstraße. Interested parties are prepared to pay higher rents now in this area than in previous years. Key money payments have been confirmed, often of six figures, provided the overall package is appropriate and attractive. Bahnhofstraße: high demand despite work in progress The Bahnhofstraße has lost nothing of its attraction. Despite the ongoing building measures at no. 8 Bahnhofstraße (formerly Ernst- August Markthalle) directly opposite the central station building and the highly visible site at Kröpcke, peak rents are on the cards. The building conversion is scheduled for completion by the end of Confirmed tenants are Desigual and Esprit, and a third textile franchise is expected. Coming along well: Karmarschstraße Although the Karmarschstraße has a lower percentage of franchises than other parts of Hannover, this is something which retail experts expect to change in the next few years. The section of the road between Leinstraße and Osterstraße, where the World Exposition plaza was fully refurbished and upgraded during 2008/2009, features broad pavements 32 33

18 3* The Leine centre in Laatzen will have expended its retail space to around 51,000 m² by the end of inviting shoppers to dawdle and linger. The finalisation of building activities at Kröpcke is fully expected to boost the development from Kröpcke through to the reys. Zero (250 m²) and Gina Tricot (550 m²) complement the textile retail offer. April saw the opening of an Edeka market Promenade, with its fashion for young consumers complements the better-established Bahnhofstraße. The promenade runs at basement level from Kröpcke, below the Shopping centres: investments in the surrounding area Markthalle. and a dm health and beauty store in the Bahnhofstraße, across and under the main J The Leine-Center in central Laatzen is Stable developments between Große and Kleine Packhofstraße basement. Das Depot will continue to use space in the old Erdmann building until the end of the year, after which time plans are on hand for demolition and redevelopment of the property to create up to 2,700 m² station plaza, and continues under the station to the refurbished Raschplatz square. The use of carefully illuminated tunnels provide shoppers with direct access to one of Hannover s most popular neighbourhood being expanded by 23,000 m² retail space. Around 11,000 m² results from the conversion of the former Hertie department store attached to the Leine- Center in the Robert-Koch Straße. Other Over the last ten years, the Große Pack- retail space. Irish label Primark has invest- locations, Lister Meile. additions include a strip of shops on the hofstraße has undergone a very stable ed for owner-occupation in the former eastern side of the car park and the period of development, despite the loss SinnLeffers store, a move which reflects its According to Engel & Völkers, the Niki- new Laatzen arcades. From autumn of of Hannover s traditional men s fashion re- ranking as a top location (inauguration in Promenade despite being at basement this year onwards, the ECE-managed tailer Erdmann and the Karstadt technical December 2011, 9,000 m²). level and with much work in progress is Leine-Center will boast some 51,000 m² store. A series of new builds and conversions has helped sustain the area s improvement curve. Vacancies amongst the department stores in the heart of the city Secondary locations move into focus Reflecting the growing scarcity of space in absolute prime locations, side streets, in one of Germany s top 50 shopping streets (Tuesday survey, April 2011). Popular mix: top locations and central areas Teh former Karstadt technical store reopens after conversion and refurbishment with TK Maxx and Gina Tricot outlets. Escalators provide direct pavement-level access from the Große Packhofstraße into the lower-level dm and Edeka shops a first in Hannover. Galerie did not upset the location s status quo by altering pedestrian traffic flows to- the station. By the end of the year, the Galerie Luise (4,500 m²) between Theater- retail space overall. J In autumn 2010 the Hanseatische Betreuungs- und Beteiligungsgesellschaft plans to commence work on extending the City Centre Langenhagen (CCL). By spring 2012 this will comprise an exten- centre actually provided openings for the particular in the southern environs of Despite the Ernst-August-Galerie, the pro- wards its two main entrances as many ex- straße and Luisenstraße will have under- sion for approx. 50 additional outlets over arrival in Hannover of new large-area con- Georgestraße, are becoming more interest- portion of shopping centre retail space in pected. Customers actually continue to pre- gone a partial restructuring and expansion a retail area of approx. 17,000 m². The cepts from international organisations. The ing. Hannover is actually quite low. With respect fer the known and attractive routes via phase with the objective of creating more overall retail space available at the CCL former Karstadt technical store has already to centres with greater than 10,000 m² re- Kröpcke and the 1a Bahnhofstraße location space for anchor tenants and also opening will then be 30,000 m². Tenants include been completely let after completion of The Schillerstraße for example has bene- tail space, the ratio of 58 m² per 1000 capi- and the underground Niki-de-Saint-Phalle- up the somewhat hidden Kleine Rotunde REWE, Expert, C&A, H&M and Rossmann. the building work. The anchor here is the fitted greatly from the opening of a Reno ta is very moderate. The German national Promenade. Pedestrian traffic surveys prove (with + 5 % retail space). The conversion American off-price specialist TK Maxx, shop (1,000 m²) in the old Karstadt bed- average is almost twice that, 107 m² per that other top locations have also escaped work is scheduled for completion in time with 4,800 m² retail space on three sto- ding building. The Niki-de-Saint-Phalle capita. The arrival of the Ernst-August- losing out to the arrival of the ECE Centre at for Christmas

19 3* J In Hainholz (Hannover city) Möbel Staude is currently expanding the retail space of its parent shop by around 10,000 m². J At the former Hanomag grounds in Linden, a brownfield site is being revitalised to provide more retail space. Bicycle retailer Zweirad Stadler (10,000 m²) opened in 2010 and is being followed by RS-Möbel, a solid wood furniture retailer (of Münster, 4,500 m²) in what used to be known as the U-Boot (submarine) hall. New LUMANI Krüger Ferrari showrooms on the site of the former Swiss Expo pavilion. Light colours, lots of glass, top materials and minimalist design create the appropriate backdrop for the Ferrari legend. Furniture world at Altwarmbüchen Porta opened its new specialist store in July 2011 Brownfield sites: room for specialist markets and retail parks J In the Südstadt, Aurelis Real Estate Hamburg sold the grounds of the former rail yards, the Südbahnhof, to market with 2,000 m² retail space in the Spielhagenstraße, for completion by late summer Hannover region is one of Germany s leading intra-regional sales markets for furniture. Investments are currently run- and a direct connection to the existing Real Markt store. Opening date is scheduled for the Franzen Group in May A J Strabag expects completion in Sep- ning at a high level. J The building on the former Porta site in Retail parks in good locations are attrac- 40,000 m² slice of the plot is to be tember of work on a retail park in Laatzen (25,000 m²) reopened after refit- tive investments demand has been high in recent years, and both vendors and developers have noticed a steady drop in return, although it is also true the site of a retail park for completion by Tenants will include Edeka (5,500 m²), Hagebau (9,500 m²) and dm health and beauty store. In Ronnenberg-Empelde. The former Coca-Cola factory grounds will then be host to approx. 5,200 m² retail space and 500 m² office space, with tenants J In mid-june, Porta opened a new store in Altwarmbüchen offering 36,000 m² retail space. On a directly adjacent site, the Krieger group of Hamburg is finalising its ting at the end of July as an outlet for the Möbel Hausmann brand. J The Möbel Roller furniture chain is opening a store in Garbsen directly adjacent TOP 10 Retail locations in Germany that tempting properties are also lack- the direct neighbourhood, another in- including a new Edeka e-centre plans for a Möbel-Höffner furniture store to long-established regional player Möbel ing. vestor is planning a new consumer (3,400 m²) and a Rossmann outlet. (37,000 m²) with an attached retail park Hesse (47,000 m²)

20 4* Logistics Property Market Hannover region European Gateway Heavy Demand Hannover region is one of Germany s key logistics sites, functioning as a gateway into Europe. The requirements set by logistics organisations are now tougher due to new logistics concepts and the taking on of core functions previously the domain of industry and trade. Consequently the quality specifications for land and suitable premises have risen. Logistics location with high space turnover Hannover region has been exceptionally stable in terms of space turnover for logistics properties. Despite the economic crisis, space turnover climbed by 24 % to 270,000 m² This figure means Hannover region stood out positively from the general market development. In 2010, the region again saw an increase of 16 % to 313,000 m², helped by the upswing of economic developments and in the face of all forecasts. Some 257,000 m² of overall turnover in 2010 is rental, around 56,000 m² owner-occupied. In a year-on-year comparison of all inland German logistics regions, Hannover played a leading role in 2010 in terms of space turnover. The bauwo Grundstücks AG has built a new contract logistics centre for Delticom, an internet car tyre dealer, in Sehnde-Höver. Operations kicked off in summer 2011 in the new 55,000 m² logistics centre located directly on the A7 motorway. 1,000,000 m² logistics warehouse space since

21 4* A parcel delivery hub for northern Germany the new Hermes north hub in Langenhagen. Turnover in m² 350, , , , , ,000 50,000 0 Logistics space turnover 2010, a comparison Berlin Rhine- Main Hannover Region Source: Jones Lang LaSalle 2011, Hannover region surveys Munich Ruhr area Cologne Stuttgart Dynamic demand in 2011 While space turnover slowed down slightly during the first six months of 2011, market participants have, however, identified a similarly strong and dynamic demand for immediately available areas offering optimum location quality or building stock with direct alternative use. This was also apparent in 2010, an excellent year. At that time the first six months was slow in terms of contract closures, followed by an excellent Q3 with top sign-offs, such as by online car tyre dealer Delticom in Sehnde- Höver (55,000 m²; project development Hannover-based bauwo AG) and the takeover of a property in Lehrte (40,000 m²) by the expanding textile mail order specialist Netrada of Garbsen. Experts anticipate space turnover for 2011 as a whole to be in the order of 200,000 m². Rising rental incomes, attractive returns The rents of logistic properties in Hannover region continue along a stable course. Peak rents for well-equipped new builds with the best location infrastructure/connections were up only slightly in 2011 to 4.60 /m². The average rent for good logistics properties are in the range of /m² depending upon location and quality. Returns are also stable, at the previous year s level of between 6.8 and 7.2 %. Attractive: Projects in will again boast many major deals, higher levels of building activity and many completions. As an example, Garbe logistics is currently developing a 19,000 m² addition for automotive service provider syncreon at its site in Wunstorf. It is only one year ago that Garbe completed the first building phase creating 20,000 m² space. Sonepar, an electronics wholesaler in Garbsen, will be extending its existing logistics centre by some 14,000 m² this year, with an additional 30,000 m² logistics space coming online by Hermes commenced operations in its north hub (17,500 m²) warehouse at the Airport Business Park in Langenhagen in May of this year. At Sehnde-Höver, bauwo Grundstücks AG finalised a new contract logistics centre for Europe s leading internet car tyre dealer, Delticom AG. Operations at this 51,000 m² logistics centre located directly on the A7 motorway started in summer In July Kaufland celebrated the foundation stone laying ceremony for its logistics centre in Barsinghausen-Bantorf (completion of first building phase with 70,000 m² scheduled for the end of 2012/early 2013.) VWN (VW Commercial Vehicles) has plans for an approx. 50,000 m² logistics centre located in the direct vicinity of its Stöcken car plant to handle parts delivered from overseas for its new Amarok model. Future-oriented: logistics space concept engenders planning security Many potential sites for logistics operations and relocations are to be found along a development corridor parallel to the A2 (E30) motorway between the towns of Barsinghausen and Lehrte and along the A7 (E45) motorway in the vicinity of the eastern motorway intersection (Kreuz Ost, see also map on page 45). In Hannover region, approx. 40 % of all commercial land sales in recent years have been down to logistics. This development has been extremely dynamic. Settlements related to logistics and expansion resulted in land use for logistics new builds of approx. 180 ha since As a consequence, the volume of plots available for immediate mar- Turnover in m² 400, , , ,000 0 Logistics property turnover Hannover region 2007 to Lettable Owner-occupation * Estimate * 40 Netrada Management GmbH is a key European player in e-commerce for fashion and lifestyle. The company sends 22 million parcels per annum; Netrada would like to establish Hannover as the central B2C hub in Europe. 41

22 4* Hannover Airport offers long-term expansion potential for air freight and logistics-related usage as well as areas with direct apron access. Logistics locations ranked according to attraction in Germany keting, and of appropriate logistics quality, has been falling continuously. Hannover region is in the process of developing new localities with the potential for logistics operations at regional centres. The objective of the logistics area planning concept 2020 is, in co-ordination with local communities, to make land available which is both marketable and compliant with area planning regulations while satisfying minimum standards of logistics requirements. Standort West: excellent location quality throughout the whole of Lower Saxony. It offers major contiguous land area potentials and is connected to the A2 via motorway junctions at Wunstorf-Kolenfeld»Experts agree this location offers excellent logistics suitability, unparalleled throughout the whole of Lower Saxony.«and Wunstorf-Luthe without passing through any towns or villages. The lion s share of the area under investigation is also suitable for round-the-clock use. The location actually offers tri-modal qualities, being accessible not only via road (motorway) but also rail and inland shipping (Mittellandkanal). as the Air Cargo Terminal (ATC) with a direct access option to the airport apron. In addition, a zoning plan is to be finalised at short notice in this area for an approx. 8.3 ha industrial park which is ideally suited for cargo and logistics operations with further expansion room currently in planning. The Airport Business Park Ost offers a further 15 ha of business and specialist areas, available immediately. < 5.00 < 5.50 < 6.00 < 6.50 < The higher the index, the greater the attraction of the logistics region. The logistics centre known as Standort West (Wunstorf/Barsinghausen along the A2) is currently the subject of a feasibility study considering the potential available in keeping with existing usage restrictions. Experts agree this location offers excellent logistics suitability, unparalleled Attractive: new areas at the airport The Airport Business Park West has been developed by constructing a tunnel underneath the airport runways. Dietz AG of Hessen will developing some 5 hectares 850 million investments in logistics locations since Source: Fraunhofer Supply Chains Services SCS

23 12 4* 11 Logistics locations 2 Space potential 14 ACT ACC Approx. 5 ha Up to 10 ha Up to 30 ha Up to 100 ha 1 13 B B 65 GVZ 7 6 Industrial parks 1 Barsinghausen/Bantorf (approx. 15 ha) 2 Burgwedel/Großburgwedel (approx. 15 ha) 3 Garbsen/western Gutenbergstraße (approx. 6 ha) 4 Isernhagen/Kirchhorster See (approx. 15 ha)* 5 Laatzen/East (approx. 35 ha) 6 Lehrte/Everner Straße (approx. 7 ha) 7 Lehrte/Aligse (approx. 6 ha)* 8 Hannover/Anderten (approx. 10 ha) 9 Hannover/Schwarze Heide (approx. 30 ha) 10 Sehnde/Höver (approx. 32 ha)* 11 Wedemark/Gailhof (approx. 10 ha) * 12 Wedemark/Berkhof (approx. 20 ha) 13 Wunstorf/Business Park Süd (approx. 80 ha)* 14 Airport Business Park West (approx. 10 ha) * Development area 44 5 ACT Logistics Centre West Airport Air Cargo Centre Air Cargo Terminal Goods transhipment centre Hannover-Lehrte Exhibition grounds Lindener Hafen (port) Misburger Hafen (port) Nordhafen (port) Brinker Hafen (port) Marshalling yard Seelze 0 km 2 km 4 km 6 km 45 Base map: ATKIS data by LGN

24 4* The first building phase is just over, here comes the extension: Garbe is adding 19,000 m 2 warehouse space for automotive service provider syncreon at the Wunstorf site. Key logistics space potential in the west No.* Logistics location Area potential Supra-regional connections (motorway junction) 1 13 Barsinghausen/ Bantorf Wunstorf/ Business Park South 15 ha GE** Directly on A2 motorway (Bad Nenndorf) Approx. 80 ha development area Prices including development Sectors and significant resident business 54/m2 Suitable for logistics and wholesale; used by Lyreco (office supplies, wholesale), logistics centre Kaufland under construction 3 km to A2 (Kolenfeld) 40/m2 Suitable for logistics, wholesale and industry; used by Lidl central warehouse, syncreon (automotive), Marley, carriers Oskar Neukirch, Langhorst, Franke, Kraftverkehr Nagel, MUK Logistik Key logistics space potential in the east No.* Logistics location Area potential Supra-regional connections (motorway junction) 5 Laatzen/East 35 ha GE** Via B6 and A37, approx. 5 km to A7 (Laatzen) 6 7 Lehrte/Everner Straße Lehrte/Aligse Prices including development No details Sectors and significant resident business Immediately adjacent to exhibition grounds, suitable for logistics, wholesale 7 ha GE** 2 km to A2 (Lehrte-Ost) No details Suitable for wholesale, processing businesses; used by Hornbach DIY market warehouse, Netrada 6 ha development area Directly on the A2 motorway (Lehrte) No details Suitable for logistics, wholesale, after sales, processing businesses Key logistics area potential in the north 8 Hannover/Anderten 10 ha GE** 1 km via B65 to A2 (Hannover Anderten junction) No details Suitable for industrial scale business, wholesale; used by DHL post freight centre, Frachtenkontor No.* Logistics location Area potential Supra-regional connections (motorway junction) 2 Prices including development No details Burgwedel/Großburgwedel Approx. 15 ha GE** Directly on A7 motorway (Großburgwedel) Sectors and significant resident business Used by Rossmann regional warehouse (health and beauty store), logistics centre Pickerd Dekor 10 Sehnde/Höver 7 ha BP, 25 ha development area Directly on A7 (Hannover- Anderten), 4 km from intersection Hannover-Ost and A7 40 to 60/m2 Suitable for logistics and wholesale, industry; used by Holcim (cement plant), Landgaard flower market, Spicers, Köster & Hapke, trans-o-flex, Brandt Logistik, Delticom AG 3 9 Garbsen/western Gutenbergstraße Hannover/ Schwarze Heide 6 ha GE** Directly on the A2 motorway (Garbsen) Approx. 30 ha GE** On A2 motorway (Hannover-Herrenhausen), directly adjacent to VWN, Continental, Johnson Controls No details Suitable for logistics, automotive, wholesale 60/m2 Suitable for automotive, logistics; used by automotive supplier Decoma; VW Amarok parts logistics centre (planned) * Numbers refer to map on pages 44/45 ** GE (Gewerbegebiet) = commercial area *** GI (Industriegebiet) = industrial area 4 Isernhagen/ Kirchhorster See Approx. 15 ha development space Directly on A7 motorway (Kirchhorst) No details Suitable for wholesale, aftersales, processing businesses 11 Wedemark/ Gailhof 10 ha development space 2 km to A7 motorway (Mellendorf) No details Suitable for logistics, wholesale, after-sales, processing businesses; used by Spedition Ebeling, Autohof 12 Wedemark/ Berkhof Approx. 20 ha GI*** Directly on A7 motorway (Berkhof) No details Suitable for logistics, wholesale, industry 46 47

25 5* Residential Property Market Hannover region Excellent market prospects for central residential locations Young families and senior citizens have for the last five years been noticeably attracted again to Hannover city, whose demographic prospects have considerably improved. The city on the banks of the river Leine is now being increasingly regarded, also in national comparisons, as a worthwhile location for residential investments and project developments. Business magazine Capital declared Hannover as the hidden champion in its latest Property Market Compass 2011, describing it as having finally woken up from a long, deep sleep. Locations near the centre and those with excellent transport connections play the key roles in the development of residential properties in Hannover. The same applies to city margin areas in neighbouring communities. Residential properties: strong growth and climbing returns Mosaik-Eilenriede Right next to the HCC and Hannover Adventure Zoo, building has started on approx. 107 prime-quality owner-occupied flats in 18 separate mansion-style buildings. J Residential rents in Hannover have risen steadily from 2001 to 2011 both for stock and new builds. A clear difference is made by several top-quality major projects such as Mosaik Eilenriede during the course of the year (peak rents rising to 11.50/m2), with maximum rents for top-notch properties in excellent locations often substantially higher). J The multipliers for existing stock peak groups rose again between 2008 and 2011 to approx. 15x. J Multipliers for top-quality new builds are often substantially higher, with approx. 19x possible for prime residential project developments and even higher still for absolutely first-class properties. J The purchase price for owner-occupied flats (new builds) has again climbed in Hannover over the year, with the peak square metre price reaching 3,300. The average price has shown the clearest rise year-on-year, up approx. 130/m2 to 2,380/m

26 5* DELTABAU is building terraced houses at Büntekamp Kirchrode a new, high-quality housing quarter on the western edge of Kirchrode. J The total value of residential property Young people and families return to the city environment more attractive. The strategy transactions topped 1 billion, almost of Hannover city appears to be most fruit- 4,400 properties (built and unbuilt Hannover s demographic prospects are actually very much better than those of many ful amongst families. While the birth-rate land and apartments), of which 2,700 other towns and cities in Lower Saxony and Germany. In the past five years, the popula- in Germany overall in 2010 was up 1.9 %, apartments (volume 260 million) tion figure has risen by around 5,000 to almost 523,000 Hannover is growing again. in Hannover it had a plus of 5 %. and 1,350 built properties ( 700 million) were traded in 2010 (panel of ex- Based on the positive developments of recent years, Hannover is expected to have a population growth of some 30,000 persons by 2030, reaching approx. 550,000 inhabi- The trend: modern living spaces perts). tants, with the number of households also climbing by approx. 4 %. J Home vacancy rate has been falling in In other words the property market for Hannover since 2006, and is currently housing in Hannover is facing several major at a value below 2.9 %.* challenges. There is an especially high de- J Hannover s housing portfolio has grown by approx. 7,000 units overall since 2000, with approx. 800,000 m² of new space arriving on the market.** J Although annual completions fell substantially between 2000 and 2010 Population forecast Residential population 1,150,000 1,125,000 1,100,000 On the grounds of a former car workshop between Tiestestraße and Große Düwelstraße in Südstadt, Gundlach has developed an attractive housing concept involving the creation of a small quarter with green courtyards. Completion was at the end of 2010 (32 housing units). The combination of a growing population creasingly families are now choosing city mand for apartments which are family- and mobility-friendly, while also being compliant with the latest energy standards. In the opinion of real estate agents and project developers in Hannover, this will be the dominant future market as a consequence (from 145,000 m² to 38,200 m²)** the and more households with a greater de- environs as the place to live, after consid- of rising ancillary costs and demographic high rates in the early part of the new millennium were due in part to continuing effects of the special building programmes for EXPO 2000 (e.g. Kronsberg). 575, , , ,000 mand for higher-quality homes is pushing the demand for ongoing new building projects. In Hannover, an experts report is being drafted to provide the basis for a residential concept This book anal- ering factors such as the higher cost of mobility and the time requirement of commutes. The need for outstanding infrastructure and an urban environment is also causing the return of the Best-ager changes. However, the stocks of apartment buildings in Hannover is hitting its buffers in terms of being barrier-free and the energy standard compliance of residential properties. Many properties, particularly those yses Hannover s market for housing and homes in terms of demand and supply. It generation (those above 50). The public purse has undertaken considerable invest- built immediately postwar, cannot be profitably refurbished to meet energy specifica- Hannover region Hannover city will provide the foundations for strategies ments above all in public transport, edu- tions, which means that they have lower Source: Lower Saxony state organisation for statistics and communications technology Regional forecast of Lower Saxony population, base year 2009 as to how Hannover should develop as a future location for modern living. Young cation and childcare, but also in public spaces and quality of life in general in a prospects. The excess demand for residential rentals will increase, unless correspond- people, single people, couples and in- concerted move to help make the urban ing rates of demolition and rebuild develop * Source: State capital Hannover, 2009 ** Source: Lower Saxony state organisation for statistics and communications technology based in part on special evaluations of homes and residential areas in residential and non-residential buildings and completions of residential areas in new buildings and building stock.

27 5* Example of top quality residential space in sought-after inner city location the Wilhelmstraße in the popular Warmbüchen Quarter is where meravis is building 16 innovative, top quality apartments. Environmentally exemplary: the Gundlach project on the Günther-Wagner-Allee is one of Germany s housing projects that has been awarded a DGNB Gold Certificate. In trend: central buildings offering high-quality lifestyles constructed in the 1970s on a site directly adjacent to the Wilhelmstraße, where it plans to build 15 high-priced tion at no. 11 Warstraße, as well as five town houses on the site of a former petrol filling station. The project has a building). The DGNB Gold Pre-Certificate was presented in 2010 at the EXPO REAL in Munich. The Pelikan Quarter is owner-occupied apartments. total volume of 5 million, completion thus one of the first residential projects In those neighbourhoods with high-density, J Gundlach is building 14 apartments of is scheduled for spring in Germany to be awarded DGNB Gold. block structures (e.g. Südstadt, Mitte, Ost- between 75 and 125 m2 in size on a J Gundlach is investing a further 50 J A further and undoubtedly extravagant stadt, List), market participants anticipate a site on Am Postkamp near the Klages- million up until 2013 in the final resi- building project involving straightfor- trend towards the buying up industrial markt created by demolishing outdated dential section of the Pelikan Quarter. ward apartment blocks is that of the brownfield sites as well as residential and office buildings. Four architects selected in a competi- Mosaik Eilenriede being realised by business properties followed by sometimes J On the same plot of land, facing Nord- tion are working on the realisation of Hochtief Solutions AG formart, directly total demolition, with the gaps created being filled with high-quality properties. This view encompasses above all many buildings constructed postwar and up to the felder Reihe, 13 rental apartments are being built sharing a courtyard with an old warehouse, which is also being converted to create office space»the Pelikan quarter is one of the first residential projects in Germany to be awarded DGNB Gold.«adjacent to the HCC congress centre on a former temporary car park used by the zoo and the HCC. The company is building s. (1,400 m2). high-quality owner-occupied zero:e park in Hannover-Wettbergen with some 300 homes built to passive-house specifications represents the largest zero-emission estate in the whole of Germany as well as Europe. J For example, the doctors pension fund It is not only small-scale projects provid- individual buildings in order to give the area a special architectural flavour. apartments in 18 detached mansionstyle blocks. The project was sold to in- In trend: demand for property presents a diverse and highly differentiated offering for many target groups. The of Lower Saxony is building seven highquality apartments, including two penthouses, in the Herthastraße in the cen- ing residential and commercial buildings which are now filling gaps in popular, high-density neighbourhoods. Overall the project comprises eight buildings with 163 apartments, a kindergarten and ten retail outlets with an vestors before building even started. There is a clear trend throughout Germa- spectrum ranges from the development tre of the popular Warmbüchen overall area of around 18,000 m2. One ny to invest in property, both for the buy- of inner city gaps and unused sites for Quarter, Mitte, on the site of a free- J As an example, Gundlach is building at- building is being explicitly constructed er s own use and well as an investment. small-scale, high-value, individual living church parish building originally con- tractive, high-quality 2 5 room owner- as a green building, with concurrent Increasing employment, higher income concepts through to major-scale project structed in the 1950s occupied apartments which satisfy even certification by the Deutsche Gesells- levels and improved earning prospects all developments in attractive locations J meravis has demolished an administra- the latest energy specifications, in Han- chaft für nachhaltiges Bauen (DGNB underpin this development. Hannover across all city neighbourhoods. tive building (former Hannover district) nover s Nordstadt in a quiet central loca- German organisation for sustainable 52 53

28 Selected housing projects Lofts as you like in the Calenberger Neustadt district, on the very banks of the Leine, Hochtief Solutions formart is developing 40 owner-occupied flats in the style of loft apartments. 22 HANNOVER Selected housing projects No.* Project name Housing units (HE) Investor, developer J A number of lots are currently being built in fully gutted halls on the former Seelhorster Garten 250 Gamma Grundstücksverwaltung freiraum kirchrode 93 DELTA BAU AG Südstadt school 16 Private Baugruppe Kirchröder Karree 15 Hochtief Solutions AG formart Herthastraße 7 Ärzteversorgung Niedersachsen Courtyards Langenhagen 38 meravis GmbH Hanomag grounds in Linden (Dibag, Lofts am Deisterkreisel) and directly on the Leine river in the Calenberger Neustadt on the grounds of the former DGB union building (Hochtief formart, Lofts as you like) Am Mozartpark 38 Deutsche Reihenhaus KronsBlick 32 Gundlach GmbH & Co. KG It is, however, not only institutional project Postkamp/ 24 Gundlach GmbH & Co. KG Nordfelder Reihe Warstraße 19 Gundlach GmbH & Co. KG developers and housing organisations which are active in the marketplace. Private building groups are becoming in- 11 Wilhelmstraße 15 meravis GmbH creasingly active: they themselves com- 12 Former St. Josefstift 13 Private Baugruppe mission architects and smaller project 13 zero:e park 300 Stadt Hannover, meravis, NLG development offices to provide support in An der Gartenbauschule 245 Region Hannover Grundstücksgesellschaft GmbH & Co. KG Mosaik Eilenriede 174 Hochtief Solutions AG formart Pelikan Quarter 163 Gundlach Büntekamp 160 Hochtief Solutions AG formart, DELTA BAU AG, Weber Massivhaus Lofts as you like 38 Hochtief Solutions AG formart the building and planning process. While these projects are of less interest for institutionalised investors they do, however, illustrate the high level of demand and the desire for individualised modern housing in central locations. 19 Lofts am Deisterkreisel 27 DIBAG AG/Private Baugruppe One example of such a group is being advised by Plan W on the conversion and re- Nearing completion/completed 9 Postkamp/Nordfelder Reihe 18 Lofts as you like Good housing location* 20 Anderter Höfe 20 DELTA BAU AG 1 Seelhorster Garten 10 Warstraße 19 Lofts am Deisterkreisel Normal good housing location* 21 Wasserstadt Limmer 600 GP AG 2 freiraum kirchrode 11 Wilhelmstraße 20 Anderter Höfe Normal housing location* fit of the listed building housing the former 3 Südstadt school 12 Former St. Josefstift 22 Freiherr-von-Fritsch- 220 Städtebau Consulting Scon City border 4 Kirchröder Karree In planning Kaserne Südstadt school for the visually impaired 5 Herthastraße Under development/preparation 21 Wasserstadt Limmer Tram Airport 23 Hautklinik Linden 80 Region Hannover Grundstücksgesellschaft GmbH & Co. KG around the old schoolyard as a shared to create 16 high-quality units grouped 13 zero:e park 22 Freiherr-von Fritsch-Kaserne DB/local train Exhibition grounds High-rise 14 An der Gartenbauschule 23 Hautklinik Linden 6 Courtyards, Langenhagen 15 Mosaik Eileriede 24 Lenbach-Höfe 24 Lenbach-Höfe 38 Klosterkammer Hannover space (completion August 2011). The former 7 Am Mozartpark 16 Pelikan Quarter 25 Wietzeaue 0 km 1 km 2 km 3 km 8 KronsBlick 17 Büntekamp 25 Wietzeaue Size: 20 ha Gemeinde Isernhagen hospital of the St. Josefstift in Linden is being converted by 13 families supported 54 * Numbers refer to map on page * Classification into good and normal residential areas is only intended as a rough guide. For detailed information on residential quality of individual roads and 2011 rents in Hannover region, please visit:

29 5* The listed building of the former school for sight-impaired children (Südstadt school), converted in 2011 by a private housing group into 16 high-quality housing units. DELTABAU will commence with the construction of the Gartenhofhäuser Anderter Höfe in late by the K+A architectural office as housing with shared space. The group is investing Residential rents, new buildings, Hannover (in /m 2 ) this space was developed and marketed towards the end of the 1990s by which will only be marketed over the medium term. The project is located on J Deutsche Reihenhaus AG is developing 40 terraced houses in the medium- around 2 3 million alone in the building costs (without land acquisition cost). In trend: urban living on the city s margins In those neighbourhoods located further away from the city centre, major housing projects are under development. A precondition of this is, however, excellent transport infrastructure, above all public Average Maximum * * Estimate Gamma. Embedded in an area of mature greenery, housing has been created featuring a homogenous, harmonious architectural style. Only a small number of gap lots are still available in an area offering a total of 250 housing units. Buildings comprise mainly terraced, detached and semi-detached units with different principals. J Kronsberg, one of the showcase inner urban projects during the EXPO 2000 the grounds of the former Continental tyre works in Limmer and features a 1.6 km long bank along two canals. By early 2012 the soil will have been remediated ready for building. J Planning is underway for project development covering approx. 220 housing»hannover is gaining stature as an attractive market providing existing housing and commercial buildings as investment properties.«price segment in Laatzen at Am Mozartpark. In trend: investment housing Hannover is gaining stature as an attractive market providing existing housing and commercial buildings as investment properties. In 2010 again, this segment saw turnover of approximately transport to the state capital s working districts. Purchase prices for owner-occupied apartments in new buildings, (in /m 2 ) Exposition continues to be expanded. Dominated by terraced houses in the mid-price range, these are being built units on the grounds of the former Freiherr-von-Fritsch barracks in the Sahl- 300 multi-household units, in part with minor mixed commercial usage. The transaction volumes represent a J Development and building preparatory activities are underway in three housing areas enjoying excellent transport connections: in Ahlem, An der Gartenbauschule, at Büntekamp in Kirchrode and at the zero:e park (Wettbergen, In der Rehre), high-quality residential areas are planned, providing room for more than 700 housing units. J An area offering abundant inner urban living quality is the Seelhorster Garten; 3,500 3,000 2,500 2,000 1,500 1, Average Peak group * * Estimate by various principals. At the present time the quarter in the northern sector is being extended, with further areas released for the construction of detached houses. J In Anderten, Delta Bau similarly plans to construct 20 energy-efficient courtyard houses in the Anderter Höfen, with building scheduled to commence in Q J The Wasserstadt Limmer is in its de- kamp neighbourhood. J Planning for the Wietzeaue housing area is firming up in Isernhagen; this site is next to the terminus of the LRT to Hannover. Development and marketing of the almost 20 ha site is scheduled from J Stadthöfe is a meravis project for 40 high-quality apartments in a Langenhagen inner city location directly opposite the CCL on the site of a defunct swim- total of almost 200 million. The increasing demand in the inner urban areas, in particular in top locations, is difficult to satisfy. Neighbourhoods such as Linden and Nordstadt are gradually shifting more into potential buyers focus. 800,000 m 2 new housing since 2000 tailed planning phase, but is a project ming pool