E x e c u t i v e   S u m m a r y

P r o j e c t:   A r c u m h a l l e n - L e i p z i g

The ‘Arcumhalls’ - a large commercial property within the city of Leipzig - offers long-term investors up to 15 % return on investment per year. The successful conclusion of the first investment phase sets an ideal timing to buy a part or the entire project.
Leipzig - sponsored by the European Union for the creation of visions to mark the beginning of the new Millennium – received the second highest investment-per-capita flow in Germany in the past 10 years. Next to Hollywood and Vienna, Leipzig – the home of Bach, Schumann and Mendelssohn Bartholdy - was voted in 1998 as the worldwide leading Tourism Magnet of the year. Situated at the crossroads of important European trade routes, Leipzig is the economic centre of the eastern part of Germany and the basis for Central European business expansion.

Project

With its highly attractive architecture from the turn of the century, the commercial property ‘Arcumhalls’ is conveniently located 15 minutes from Leipzig’s City Center, just off the highway, with its own public transportation stops right in front of the main building. A parking area is planned. The freight railway is directly at the back of the property, which enables efficient delivery of goods. At present 30 % of the property is leased and partly renovated. Total property area about 40.000 square meters. The planning and regulatory stage with its market-specific requirements is almost completed. The building permissions are already granted for major sections, making it an ideal phase for any investor to participate in the project.

Advantages

1. Project: up to 15 % return on investment per year for long-term investors

2. Location: Leipzig, Germany and Europe are set for a phase of growth after the recession

3. Large commercial space close to the city center is hard to find on the real estate market

4. Property values in Leipzig have plummeted in previous years and are now beginning to rise

5. Efficient infrastructure: On site connections for rail, road and public transport

Development Options

Licensed uses of the 40.000 square meters large property include: Wholesale, Retail, Production, Logistics, Industry, an Entertainment Centre or a Theme Park. Please visit our website ‘www.arcumhalls.com’ (or www.arcumhallen.de) for illustrations and details.

A Top Location for a Top Investment

EUROPE

According to a study by the International Monetary Fund (IMF), the EURO-area economy is doing well and is set for a long and strong expansion.
The president of the German Bundesbank, Ernst Welteke, describes the EURO-Zone ‘at the start of a phase of outstanding growth and ready to outperform the USA’.
Additionally the European currency ‘EURO’ is expected to pick up against the US Dollar.

SAXONIA

Already in the 19th century, the advancing industrialisation created an upswing in Saxonia and made it the leading industrial region of Germany with a high degree of innovation. Today Saxonia is once again the leading Federal State with the highest growth rates amongst the New Federal States of Germany.

LEIPZIG

Leipzig, recorded for the first time in 1165 as a city, has been a renowned Trade Centre since the 15th century. After the German reunification, Leipzig received the highest investment-per-capita flow in Germany after Berlin: With 1,5 million inhabitants and a retail buying capacity of about 7 billion US Dollars, the region is one of the biggest markets in the eastern part of Germany. As an incentive for international investors, there are numerous aid and grant programmes as well as tax benefits on a state and federal level. Leipzig is situated at the crossroads of important European trade routes which have been used for centuries and boasts all the necessary prerequisites for a booming modern city:

1. Largest railway terminal in Europe fully renovated and modernized

2. New Leipzig Fair and Exhibition Center – since 1996 the most advanced in the world

3. Leading banking center in southern part of eastern Germany with over 100 banks

4. First German City to receive the WORLD TRAVEL AWARD in 1998 by the ‘Association of American Travel Editors’. Next to Hollywood and Vienna, Leipzig was voted as the leading Tourism Magnet of the year

5. Biggest airport of the New German Federal States
   With the new intercontinental runway, a 39 % growth of air cargo last year, and the high-speed train station (ICE) integrated soon, Leipzig Airport is becoming an essential link in the heart of Europe. Non-stop flights to destinations worldwide are now possible for all aircraft types

6. Restoration of the beautiful city centre protected by UNESCO as a world cultural monument

7. Culture and Entertainment Center, for example

   • home of Johann Sebastian Bach, Robert Schumann, Felix Mendelssohn Bartholdy, etc.
   • Largest pub festival in Europe, major soccer events (2001 & 2006) etc.

8. New stronghold of television, radio and media

9. Eminent scientific and research center

10. Further Top Investments included:

    • since 1994 largest and most modern mail-order firm (1 billion German Marks)
    • new power station (3 billion German Marks)
    • new Headquarters of Deutsche Telecom equipped with latest digital technology
    • new Cargo Transfer Center, Logistic Center, World Trade Center, Porsche Plant, etc., etc.

After the boom of east German Real Estate prices from 1989-1993 and the consolidation between 1994-2000, Leipzig is back on track since 2003. Taking advantage of the cyclical development, a present investment has good chances for above average value growth. The sportscar manufacturer ‘Porsche’ and numerous other companies are moved to Leipzig and therefore real estate prices have began to rise. This makes it an ideal timing for investing.

‘Leipzig is up and coming’ – this is the slogan of Leipzig - the city of Business, Commerce, Transport, Service, Communication, Media, Arts & Culture, Science, Entertainment and Sports.

Infrastructure of Arcumhalls

With its direct access by rail, road and public transport, the ‘Arcumhalls’ are excellently situated:

• 5 min. (by car) to the next motorway
• 10-15 min. (by car) to the city centre of Leipzig
• 20 min. (by car) to the airport
• Own public transport stop between the two pedestrian passages of the main building
• Two other tram stations within walking distance
• Two railway lines on site leading to the Leipzig container and goods handling station

Property Potential:

According to 'Jones Lang La Salle' similar commercial properties near to the city center are rare in Germany (space being limited) and new ones rarely if ever permitted by the authorities.
The potential of the property can be seen when compared to Munich, where a similar property was just sold near the 'Frankfurter Ring' for 2.476 USD per sq.m.
We are conservatively assuming, if the Arcumhalls would be purchased today and sold in 10 years, the price in 10 years would be still half of the price in Munich today – this with an average of 20 % return p.a.
Considering the fact, that Leipzig is on place 15 of the 100 largest German Cities and the most important economic city in the eastern part of Germany, Leipzig can be expected to catch up with Munich, Frankfurt and Berlin prices in the long run and outperform the assumption.

For Details please contact:

E-mail:	info@arcumhallen.de
Website:	www.arcumhalls.com www.arcumhallen.de