TLG IMMOBILIEN acquires "Burgwall" neighbourhood shopping centre in Wismar

- Established shopping centre in highly frequented location

- Investment volume: EUR 18.6 million

- Contractual rent approx. EUR 1.5 million p.a.

- Average lease term (WALT) 5.4 years, primary tenants: Rewe, Norma, Deichmann, Rossmann

- 98 % occupancy rate

Wismar/Berlin, 23 June 2015 - TLG IMMOBILIEN AG today signed the purchase agreement for the "Burgwall" shopping centre in Wismar (Lübsche Str. 146-148, 23966 Wismar, Mecklenburg-Western Pomerania). The property was sold by a fund managed by TH Real Estate. TH Real Estate was advised by DTZ, and the deal was brokered on the buy side by Hafenmakler Hamburg Adolf Zelle. The total investment amounts to EUR 18.6 million.

The shopping centre, completed in 1993, is located on an easily accessible main thoroughfare leading into Wismar's old town. The harbour and historic old town are within walking distance. "The established property is heavily frequented by nearby residents, tourists and people from the surrounding area and serves as a local centre for daily food retailing", said Niclas Karoff, member of TLG IMMOBILIEN AG's Management Board. The shopping centre offers approx. 11,700 square meters of lettable space, 98 % of which has been let, and generates annual rental income of approx. EUR 1.5 million. The remaining average lease term (WALT) is 5.4 years, though several major anchor tenants recently renewed their leases for extended terms. The primary tenants are Rewe, Norma, Deichmann and Rossmann. Furthermore, there are 224 parking spaces on the property.

Wismar is located on the Baltic Sea and is the sixth-largest city in Mecklenburg-Western Pomerania. It was added to the UNESCO World Heritage List in 2002. "We deliberately include properties such as the 'Burgwall' shopping centre in our acquisition strategy to expand our portfolio. Where retail properties used for daily food retailing are concerned, the quality of the immediate surroundings is of utmost importance, which is why we are particularly pleased with this location", added Mr Karoff. Including this transaction, this year, TLG IMMOBILIEN AG has added properties worth approximately EUR 190 million to its portfolio, or has signed purchase agreements to that effect. This includes two office properties in Dresden and Rostock and four specialist stores and retail food centres in Berlin and the surrounding areas as well as in Rostock.

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About TLG IMMOBILIEN
TLG IMMOBILIEN AG is a leading commercial real estate company focusing on Berlin and growth regions in Eastern Germany. For over 20 years, TLG IMMOBILIEN has been synonymous with real estate expertise in Germany's East. TLG IMMOBILIEN generates stable rental income and exhibits low vacancy rates, very good building stock and profits from its local employees' excellent market knowledge. As an active portfolio manager, TLG IMMOBILIEN is specialised in commercial properties for office and retail use. TLG IMMOBILIEN focuses on managing a high-quality portfolio of office properties in Berlin and other regional economic centres, as well as a regionally diversified portfolio of retail properties in highly frequented micro locations. The portfolio also includes five hotels in Berlin, Dresden and Rostock. TLG IMMOBILIEN's properties stand out not only due to their excellent locations but also because of their very long-term rental or lease agreements.
As at 31 March 2015 the portfolio value (fair value) is EUR 1.589 bn. The EPRA Net Asset Value per share is EUR 15.63 as at the reference day.

TH Real Estate company profile
TH Real Estate is an established investment management company, specialising in real estate equity and debt investing worldwide. As one of the largest real estate managers in the world, TH Real Estate has the scale, capital resources and knowledge to provide creative and effective real estate investment solutions for clients. With a focus on the retail, office, logistics, debt and residential sectors, TH Real Estate emphasises sustainable practices to protect assets and maximise their value.
The company is owned by TIAA-CREF, a national financial services and Fortune 100 company, with EUR 798 bn assets under management*. Launched in April 2014, TH Real Estate has a dedicated global presence with offices across America, Asia and Europe, representing c. EUR 23.9 bn* of real estate assets across c. 50 funds and mandates. Together with TIAA-CREF's US real estate assets, the global real estate platform of EUR 76.6 bn* represents one of the largest real estate investment management enterprises in the world.
Its products are managed by specialist teams, which apply their own experience to the management and style of their portfolios. Each team is supported by an experienced senior management team and integrated investment platform, including finance, debt and currency management, performance analytics, client service, fund and transaction structuring, development, sustainability and research.

www.threalestate.com

* All figures as at 31 March 2015.