GERMANY

Following a significant uplift in the value of German commercial property in 2005, Louis Group made strategic acquisitions in Germany in 2006 in both the retail and residential markets. The Group acquired a number of supermarkets and retail properties for some of the biggest retailing corporations in Germany. Some of the more significant tenants, who are leasing multiple properties with strong covenants, include Aldi retail stores, the Rewe Group and Plus.

The residential property market is also favourable to foreign investment. Bonn, the location of the Group’s luxury residential apartment acquisitions, has been ranked as the top region in Germany with respect to both projected population growth and projected employment growth. Major companies and the German headquarters of the United Nations have selected to operate from Bonn, which also enjoys an excellent infrastructure and transport system.

Louis Group continues to hold a positive outlook for its investments in the German commercial and residential property markets, which are ably managed by its Louis Group Property Services.