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Berlin, 23 May 2011vdp press release no. 4

Pfandbrief Banks launch new indices for German office market

Contribution to further raise level of market transparency

Generally stable performance since 2003 of both prices and rental levels

Indices for owner-occupied housing already established

The Association of German Pfandbrief Banks (vdp) today in Frankfurt presented a newset of indices which measure changes in rent levels and capital values for officebuildings in Germany. This marks the first major expansion to the vdp Property PriceIndex family, which was first unveiled in February 2010 with the launch of price indicesfor owner-occupied housing. Further additions are planned, including indices for retail

buildings in Germany.

Calculations for these index series are performed by vdpResearch, a subsidiary of theAssociation, based on high-quality data from actual transactions obtained throughPfandbrief Banks in the course of their lending activities.

The vdp member banks combined are leaders in the financing of commercial real estatein Germany and have a knowledge of local office property markets which is rivalled byfew other market participants, said Jens Tolckmitt, Chief Executive of the vdp. Throughthe large number of property transactions which they finance, the Pfandbrief Banks havean extraordinary breadth and depth of expertise within this field. It is this vast base ofinformation which the vdp brings together, making the compiled knowledge available,

through its German Property Price Index family, not only to its member institutions butalso to governmental bodies and other interested parties. Following the launch of theindices for owner-occupied housing, these new commercial property indices are asignificant contribution by the Association toward further raising the level oftransparency in the German real estate market, added Tolckmitt.

Until now, few indices of rental levels and property prices have existed for the Germanoffice property market, and those are for the most part updated only annually or aremostly limited to top-tier properties in the largest metropolitan areas. The vdp indices foroffice buildings, in contrast, capture quarter-to-quarter changes across the entireGerman commercial office market from the start of 2008, providing unique insights intorental levels and property values based on actual transaction data. They thus are a very

significant addition to the existing set of indices, noted Tolckmitt.

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There are only a few commercial real estate indices worldwide which can match thesein terms of methodology and breadth of database, noted Reiner Lux, Managing Directorof vdpResearch. Later this year we plan to launch additional indices for the Germanrental housing market, to be followed by indices for German retail space starting in thefirst half of 2012. This means that the overall vdp Property Price Index, consisting of itsfour components owner-occupied housing, office buildings, rental housing and retailbuildings will cover more than 90 per cent of the total German property market. Theoutlook is thus excellent for it to become a central indicator of property prices spanningthe entire German market.

Indices for owner-occupied housing already well established

The vdp indices for owner-occupied residential properties in Germany, first introducedby the Association in early 2010 and regularly released since then, have already attractedbroad interest among investors, intermediaries and information providers in the propertymarket. These statistics, which now also include German office buildings and will in the

future be expanded to other index components, provide a valuable source of additionaldata to banks for their risk management and business activities. Deutsche Bundesbankalso incorporates them into its regular reports on this topic.

In addition, the indices serve as reliable indicators of changes in the relationshipbetween supply and demand in specific markets. The vdp indices for office buildingsserve as excellent benchmarks for comparing prices in this market segment, bothnationally and internationally, said vdp General Manager Jens Tolckmitt in conclusion.

Press contact:

Dr. Helga Benderphone: +49 (0)30 20915-330

e-mail: bender@pfandbrief.de

Felix Schnellbacherphone: + 49 (0)30 20915-380e-mail: schnellbacher@pfandbrief.de

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