Your success is : our benchmark

2

SHORT PORTRAIT

DEUTSCHE HYPO – STATE-OF-THE-ART OUT OF TRADITION

Deutsche Hypo is one of the oldest and most renowned Pfandbrief banks in Germany. It was founded as Deutsche Hypothekenbank (Actien-Gesellschaft) in 1872 by Berlin-based merchants and bankers. Deutsche Hypo’s head office is in Hanover. As experienced specialists, we support professional real estate finance customers in Germany and, for the last 25 years, in other core European markets as well. Thanks to our wide product range, we have the right solution for your project. For over 140 years the priorities have been “quality before quantity” and “continuity before volatility”. Our 400 employees are here to help you.

WELCOME TO DEUTSCHE HYPO

From left: Andreas Rehfus, Andreas Pohl

“You too can benefit from our experience and our know-how in the most important real estate finance markets in Germany and Europe.”

“Those who identify risks early can also deal with them. This expertise is the cornerstone of our lean credit process.”

Andreas Pohl Speaker of the Board of Managing Directors

Andreas Rehfus Member of the Board of Managing Directors

We are looking forward to meeting you.

3

4

STRONG PARTNERS

IN A NUTSHELL

OUR GROUP Deutsche Hypo has been part of the NORD/LB Group since 2008 and acts as the centre of competence for the core business area of commercial real estate finance and the issue of Mortgage Pfandbriefe. Deutsche Hypo is a member of the Joint Liability Scheme at the Savings Bank Finance Group. Synergy is achieved through Deutsche Hypo’s close ties with NORD/LB, which affords Deutsche Hypo‘s customers access to the product range of an internationally active major bank. With total assets of € 190 billion, NORD/LB is one of the most important financial institutions in Germany. Its majority shareholder is the federal state of Lower-Saxony.

NORD/LB – LEADING UNIVERSAL BANK IN THE HEART OF NORTHERN GERMANY: // Landesbank for the federal states Lower-Saxony and Saxony-Anhalt // Central bank for savings banks for Lower-Saxony, Saxony-Anhalt and Mecklenburg-Western Pomerania // State savings bank in the Braunschweig county with more than 100 branches

OUR FACTS AND FIGURES ENGAGES IN THE BUSINESS AREAS: // Commercial real estate finance business (at Deutsche Hypo) // Corporate customers // Structured finance in the sector of energy and infrastructure // Ship and aircraft finance // Capital markets business // Private and commercial customers

OFFERS FINANCIAL SERVICES AS A COMMERCIAL BANK FOR: // Private customers // Institutional customers // Corporate customers // Public sector customers

DEUTSCHE HYPO’S ANNUAL RESULTS 2014 in € millions Income statement figures Net interest income Net commission income Administrative expenses Risk result Income from securities and participatory interests Result from normal operations in % / in € millions Other information Cost-income ratio Total assets

01.01. – 31.12.2014 222.3 4.5 70.2 – 62.2 – 42.5 41.4

01.01. – 31.12.2013 209.8 6.6 69.0 – 83.2 6.5 64.3

31.12.2014

31.12.2013

32.5

32.8

30,054.9

31,274.5

Change (in %) 6.0 – 31.8 1.7 25.2 >–100.0 – 35.6

– 3.9

Further details concerning the business development in the year 2014, in the first half of 2015 and previous years can be found under www.Deutsche-Hypo.de

The NORD/LB Group consists of: Deutsche Hypo’s ratings Mortgage Pfandbriefe Moody’s

Public Pfandbriefe Aa1

Aa1

Short-term Liabilities Prime-1

Long-term Liabilities A3

Baseline credit assessment (BCA) B1

5

PERSONALLY ON SITE

EXTENSIVE KNOW-HOW

OUR CORE MARKETS

OUR ASSET CLASSES

WE HAVE A LOCAL PRESENCE IN THE MOST IMPORTANT REAL ESTATE MARKETS

WE FINANCE THE FOLLOWING ASSET TYPES:

Deutsche Hypo focuses on direct business with professional real estate investors. We offer tailored financing concepts and support. We engage in high-quality properties, which we finance in close collaboration with our clients.

Warsaw London

Amsterdam

Hamburg

Hanover

Deutsche Hypo concentrates on regions with a large property stock and a positive outlook and properties with a good tenant structure and stable cash flow. Deutsche Hypo’s strategic target markets are Germany, UK, France, Benelux and Poland.

Frankfurt

Paris

// Office and commercial buildings // Retail // Hotels // Multi-storey residential // Logistics   Deutsche Hypo’s multi-lingual team has a wealth of market experience and prides itself on its asset-based expertise and local legal knowledge in each of its core markets.

Munich

New real estate finance business by region

■ Domestic ■ Foreign

4,000 3,610.3

3,500 Volumne in € millions

6

3,000

2,769.2 2,513.0

2,500 2,000

1,201.8

811.1

1,567.5

1,702.0

2,662.1 563.1

1,492.8

2,099.0

2,117.5

1,500 1,000 500 0 2011

Regional breakdown ■ Germany 62.9 %

Breakdown by property type: ■ France 7.7 % ■ UK 11.2 % ■ Benelux 11.2 % ■ Poland 1.9 % ■ Other 5.1 %

■ Office and commercial buildings 38.4 % ■ Retail 34.2 % ■ Residential real estate 12.4 % ■ Others 7.7 % ■ Hotels 7.3 %

Total volume € 12,410 million as of 31.12.2014

2012

2013

2014

7

OUR REFERENCES DREISCHEIBENHAUS

MALL OF BERLIN

FRANKFURTER OPERNPLATZ

WESTFIELD SHOPPING CENTRE

SOFITEL MUNICH BAYERPOST

HOTEL ZOO

Type of property: Office building Location: Düsseldorf Customer: Momeni Gruppe and Black Horse Investments Project volume: € 230 million

Type of property: Shopping centre Location: Berlin Customer: A joint venture between High Gain House Investments/Berlin and Arab Investments/ London Financing volume: € 600 million

Type of property: Hotel, offices and residential Location: Frankfurt Customer: Opernplatz GmbH & Co. KG (a property company of the Elleke Group) Financing volume: € 150 million

Type of property: Shopping centre Location: London Customer: Commerz Real Investmentgesellschaft mbH Financing volume: € 288 million

Type of property: Hotel Location: Munich Customer: Hotel Bayerpost München GmbH & Co. KG (a fund of the Ebertz & Partner Group) Financing volume: € 80 million

Type of property: Hotel Location: Berlin Customer: Kurfürstendamm 25 Besitz GmbH Financing volume: € 35 million

10

WELL POSITIONED

WELL INFORMED

OUR PRODUCT RANGE

OUR PUBLICATIONS

Are you planning to invest in real estate? Talk to us about your ideas. Together we can develop the right financing strategy for your project.

We do not keep our know-how to ourselves. So that you can share in our experience and expertise, we publish:

OUR PRODUCTS AT A GLANCE:

WHAT YOU CAN COUNT ON:

// regular market analyses on current developments in the real estate markets and in the real estate industry as well as // the Deutsche Hypo Index, our real estate economy index that appears on a monthly basis

// Medium to long-term financing of existing properties // Interim financing // Financing of project developments // Financing of refurbishments // Portfolio financing // Acquisition financing // Structuring // Syndication/underwriting // Derivatives (via NORD/LB)

// Professional and individual support // Comprehensive market and industry knowledge // Local know-how // Tailored financing and term structures // Quick approval process and fast implementation for finance // Reliability and continuity // Constructive collaboration on an equal standing

Global Markets Real Estate

EINZELHANDELSIMMOBILIENMÄRKTE IN DEUTSCHLAND – AKTUELLE HERAUSFORDERUNGEN

Available on our website*: IMMOBILIENKONJUNKTUR-INDEX

www.deutsche-hypo.de

November 2015

Frühling im November Nicht nur die Temperaturen waren Anfang November in ganz Deutschland frühlingshaft, überstiegen in Süddeutschland sogar die 20 Grad-Marke. Es wurde bereits vom heißesten November seit 1761 gesprochen. Auch die Stimmung in der Immobilienwirtschaft zeigt sich beim Deutsche Hypo-Index in Höchstform.

Besides traditional products, Deutsche Hypo also offers innovative approaches of commercial real estate finance. From a strategic cooperation with insurance companies and pension funds as well as the structuring of credit funds, we integrate financially strong financing partners. This is why we can also realize transactions of considerable magnitude. This will benefit you.

Mit 142,2 Zählerpunkten konnte sich das Immobilienklima im November gegenüber dem Vormonat um 1,9 Prozent weiter verbessern und übertrifft damit den bisherigen Jahreshöchststand vom März (141,0 Punkte). Die Steigerungen betreffen sowohl das Investment- als auch das Ertragsklima, das noch einen höheren Zuwachs ausweist. Anstiege sind in den drei Segmenten Wohnen (+3,3 %), Handel (+ 1,6 %) und Büro (+1,5 %) zu verzeichnen. Nur das Industrieklima blieb mit einem leichten Rückgang fast stabil (-0,2 %). Auf das Expo-Hoch im Oktober folgt also der Frühling im November. Und ein weiterer Rekord ist zu vermelden. Die Immobilienkonjunktur, in die u. a. Werte wie der DAX, DIMAX und das ifo-Geschäftsklima einfließen, erreicht seit dem Erhebungsbeginn 2008 einen neuen Höchststand mit 274,8 Punkten. Sind diese Werte schon ein Zeichen für die Jahresendrallye? Nicht nur. Die Daten für die deutsche Wirtschaft sind ungebrochen gut, viel Geld weltweit sucht eine sichere Anlageform und findet sie in deutschen Immobilien – und das bei immer noch niedrigeren Preisen und höheren Renditen im europäischen und internationalen Vergleich.

Ihr Erfolg ist : unser Maßstab

Herzlichst, Ihr Andreas Pohl

*Available in German and partly English

11

BROAD INVESTOR BASIS

SUCCESSFUL ISSUES

OUR FUNDING Deutsche Hypo is one of the most renowned Pfandbrief banks in Germany and one of the most well-known issuers in the market. In addition to Pfandbriefe, we also issue unsecured bearer and registered bonds. In the current year 2016, we have issued a Mortgage Pfandbrief in benchmark format in the amount of € 500 million. For 2016 as a whole we are expecting a funding volume of € 5.0 billion.

We have longstanding relationships with a large number of German and international investors and therefore have a broad investor base. As with our real estate financing business, we distinguish ourselves in our ­capital market business by our ability to react quickly and flexibly to customer needs and market requirements. In doing so we are able to optimally meet demand. Our cost-effective issuing platform has proven itself as a competitive advantage in commercial real estate financing.

Funding mix

■ Public Pfandbriefe ■ Mortgage Pfandbriefe ■ Unsecured

8,000

Structure breakdown

90 % 80 %

6,000

3,000

4,254 1,847

3,266 541

2,852 1,238

2,000 1,000

3,572

2,311 96

0 2012

1,970 3,550

2,725 1,614

1,450

1,602

70 % Volumne in %

5,000

5,000 4,000

■ Benchmark ■ Structured ■ Private Placements

100 %

7,000 Volumne in € millions

12

60 %

70

69

73

70

1

2

50 %

2014

2015

30 % 20 % 10 %

Outlook 2016

€ 500,000,000

€ 500,000,000

€ 500,000,000

Mortgage Pfandbrief

Mortgage Pfandbrief

Mortgage Pfandbrief

7 years Maturity 10.06.2020 ISIN DE000DHY3988

5 years Maturity 29.07.2019 ISIN DE000DHY4382

7 years Maturity 20.04.2022 ISIN DE000DHY4457

7 years Maturity 22.02.2023 ISIN DE000DHY4614

Lead Managers BayernLB, Commerzbank, Crédit Agricole CIB, DZ Bank, NORD/LB

Lead Managers DekaBank, DZ Bank, HSBC, NORD/LB, UniCredit

Lead Managers BayernLB, Commerzbank, Crédit Agricole CIB, DZ Bank, NORD/LB + Bankhaus Lampe KG (Co-Lead)

Lead Managers BayernLB, Crédit Agricole CIB, DZ Bank, NORD/LB, HSBC

2013

2014

2015

2016

40 % 1 29

31

26

28

2012

2013

2014

2015

0% 2013

€ 500,000,000 Mortgage Pfandbrief

13

14

TO A FRUITFUL COLLABORATION

CONTACTS

TOGETHER WE CAN ACHIEVE GREAT THINGS With Deutsche Hypo you can rely on a partner who will use its experience and expertise to achieve success for you. Since we were founded, we have risen to the challenge of achieving more for our customers. This is how we became one of the most successful and most renowned Pfandbrief banks in Germany. Our specialists will offer you a high level of know-how, flexibility and service. At the same time great emphasis is placed on acting as a partner. We rely on strong, longterm business relationships and look forward to making your project a success with you. Because:

Your success is : our benchmark

YOUR CONTACTS WE WILL FIND THE RIGHT FINANCING SOLUTION FOR YOU. COME AND TALK TO US: Office Frankfurt Head Ingo Albert Tel. +49 69 219 351 812 Mobile +49 172 5182592 [email protected]

Real Estate Investment Banking Head Dieter Koch Tel. +49 511 3045-871 Mobile +49 173 2450107 [email protected]

INTERNATIONAL PROPERTY FINANCE

Office Hanover/Saving Banks Network Head Alois Algermissen Tel. +49 511 3045-591 Mobile +49 172 5103037 [email protected]

Structured Finance/International Real Estate Head Sabine Barthauer Tel. +49 511 3045-740 Mobile +49 172 5417570 [email protected]

OFFICE AMSTERDAM

Institutional Investors Head Christoph Hötzel Tel. +49 69 219 351 810 Mobile +49 172 511 6517 [email protected]

Central Acquisition Head José Luis Calderón Martínez Tel. +49 511 3045-807 Mobile +49 173 2365065 [email protected]

OFFICE LONDON

Office Hamburg Head Thomas Hansen Tel. +49 40 376 55-310 Mobile +49 172 5116515 [email protected]

Hotel Financing Head Uwe Niemann Tel. +49 511 3045-771 Mobile +49 172 4279302 [email protected]

OFFICE PARIS

Office Munich Head Harald Nolterieke Tel. +49 89 512 66 70 Mobile +49 172 4545019 [email protected]

Customers North Rhine-Westphalia Head Peter Kleinhütten Tel. +49 211 598951910 Mobile +49 152 01518500 Peter.Kleinhü[email protected]

OFFICE WARSAW

Head Thomas Staats Tel. +49 511 3045-163 Mobile +49 172 9234419 [email protected]

Head Wouter de Bever Tel. +31 20 691 45 51 Mobile +31 65 0737390 [email protected]

Head Markus Nitsche Tel. +44 20 742 947 00 Mobile +44 77 95262414 [email protected]

Head Anne-Isabelle Carbonnières Tel. +33 1 550 484 85 Mobile +33 6 297 947 22 [email protected]

Head Beata Latoszek Tel. +48 22 828 02 53 Mobile +48 78 6865732 [email protected]

15

Deutsche Hypothekenbank (Actien-Gesellschaft) Osterstraße 31 30159 Hannover Telefon +49 511 3045-0 Telefax +49 511 3045-459 [email protected] www.Deutsche-Hypo.de