Real Estate Investment Trusts (G-REITs) In Germany

This resolution will be retroactively having effect as at 1

January 2007. This will provide investors with an alternative

for indirect real estate investments.

A REIT must be a corporation listed on the Stock Exchange,

pursuant to the provisions in the German Stock Companies Act

and the German Commercial Code. Furthermore, the following

conditions must be met in order to qualify for REIT status:

The corporation must have its registered office and

management in Germany and must be registered on the

commercial trade register,

REITs are obliged to distribute at least 90% of

distributable profits to shareholders;

According to "widely held stock regulation", at

least 15% of shares must be permanently owned by

shareholders, who, in their turn, may not hold more than 3%

of shares. Direct participation for each individual

shareholder has been limited to 10% of the amount of

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