DIFA acquires shopping centre project in Cologne for DIFA-GRUND

Hamburg, 28. September 2004 – Hamburg-based DIFA Deutsche Immobilien Fonds AG has acquired a 94 per cent share in the “Köln Arcaden” (“Cologne Arcades”) project from GSE (GSE Grundstücksentwicklungsgesellschaft mbH & Co Kalker Hauptstraße KG) by way of a purchase contract. Currently under construction, Köln Arcaden will be Cologne’s first shopping centre east of the River Rhine. DIFA is investing around 180 million euros in the development, which is scheduled to open in March 2005. “By taking a majority stake, DIFA is continuing its diversification strategy and further expanding the retail portfolio. Shopping centres in carefully selected locations promise attractive returns and help balance risk within our retail funds,” explains Dr. Frank Billand, the DIFA board member responsible for real estate acquisitions and sales in Germany.

The total volume of investment in Köln Arcaden amounts to 185 million euros. More than 90 per cent of the retail space has already been taken by companies such as Toom, Media Markt, H&M, Thalia and C&A, and the property will be fully let on opening. The complete site covers an area of 45,855 square metres.

The Köln Arcaden transaction also sees the continuation of DIFA’s successful collaboration with mfi Management für Immobilien AG. Like at the Spandau Arcaden property in Berlin and the Riem Arcaden StadtQuartier development in Munich, mfi AG will be responsible for project development, project management, lettings and long-term centre management.

Köln Arcaden forms part of a wider development concept for the area of Cologne located east of the River Rhine, opposite the historic heart of the city. The complex is situated on one of the key routes into the city centre (the B55A) and is directly adjacent to the existing local shopping area. Excellent transport links are within easy reach: the U1 and U9 underground lines, the S12 suburban rail link and the regional RE9 train all stop at the Köln Arcaden main entrance. The A3 autobahn, a key north-south route, is just three kilometres to the west and within 5 to 10 minutes drive.

According to a report by GfK prisma, the catchment area for the shopping centre comprises the districts of Kalk, Mülheim and Porz, and extends beyond the city boundary into the Rheinisch-Bergisch region. This represents a total of 807,000 inhabitants and 4.3 billion euros of spending power. Köln Arcaden is also expected to attract visitors from the outlying areas to the north and south of Cologne.

Cologne is seeing a major shift from manufacturing to services, with the changes particularly evident east of the river and especially in the Kalk district of the city.

The development concept adopted by the municipal authorities for this area envisages a new, multifunctional focus featuring apartments, offices, shops, restaurants/cafés, communication, a public park, plus cultural and leisure facilities. From spring 2005 the new shopping centre will be the star attraction. Located at the main intersection between the bustling Kalker Hauptstrasse and Vietorstrasse, “Köln Arcaden” will include some 130 shops offering 27,000 square metres of retail space, and 1,700 parking spaces.

Press contact
DIFA Deutsche Immobilien Fonds AG
Real Estate Marketing, Communication
Dr. Susanne Kaschub
Caffamacherrreihe 8, 20355 Hamburg, Germany
Tel: +49 40 3491 9139, Fax: +49 40 3491 9190
E-mail: susanne.kaschub@difa.de

Press contact:
mfi Management für Immobilien AG
Petra Richter
Am Waldthausenpark 4
45127 Essen
Germany
Tel.: +49 20 182 081
E-mail: p.richter@mfi-online.de