Three properties for one goal:
Lasting stable development.
The closed-end property fund EuroSelect 07 was fully placed in January 2005. The fund is invested in three locations: London, Bonn and Nuremberg.
The property in London is situated in Hammersmith West End. The building was constructed around 1940, expanded in 1960 and finally renovated in 1995. Until 4 December 2008, the tenant was the EMI Group plc. With effect from 5 December 2008, the rental agreement was transferred with the current terms to the Halcrow Group Ltd.
The office properties in Bonn comprise an office building constructed in 1960 which was completely gutted and fully renovated by 2003 and a new office building constructed in 2002. Both properties are let by IVG Immobilien AG. The rental agreement runs until 2020.
The office building in Nuremberg, constructed in 1994, is part of the Nordostpark, an internationally known technology park. The building is fully let to various individual tenants.
As of 31 December 2009, the value of the fund property in London rose to GBP 39.5 million (2008: GBP 36.5 million). Compared with the purchase price paid by the fund company, the property posts a valuation gain of 13.18%.
The company has achieved almost the income projected in the prospectus. Since the company generates part of its income in GBP and all important expenditures and payouts are effected in euros, some expenses and payouts are subject to foreign exchange risk. Despite a foreign exchange reserve, the payout for the second half of 2009 had to be reduced by 2.25% due to the negative GBP/EUR exchange rate trend.. The cumulative payout over the life of the fund so far with reference to the placed equity is thus 2.75% below the figure projected in the prospectus.
