Garbe Group and CB Equity Partners Announce Creation of a New Real Estate Investment Fund

LONDON - Garbe Group, an international real estate company with head offices in Hamburg, and CB Equity Partners, a corporate finance firm with offices in London, Hamburg and Munich, announce today the creation of a new real estate investment fund.

The contribution fund will work as an investment pool into which individual assets will be contributed in exchange for units. The private Luxembourg-domiciled vehicle will be managed by 1st Red AG in Hamburg, a subsidiary of Garbe Group, in conjunction with CB Equity Partners. The idea of the fund is to allow investors to transform an otherwise illiquid investment to a liquid, professionally managed and diversified investment portfolio resulting in enhanced attractiveness to passive investors and finance providers.

The idea of a contribution fund revives the roll-up fund concept that has first been successfully applied in the United States real estate markets during the savings and loan crisis. These roll-up funds allowed investors who otherwise would have had difficulty to exit their single assets into the market to target, in conjunction with other contributors to the investment pool, an alternative forum for institutional funds, especially pension funds, and insurance companies. Additionally, capital markets have responded well to the flotation of some of these portfolios as REITs.

Jan Alexander Gehrmann, Chief Operating Officer of 1st Red AG in Hamburg:

“This new fund is being established as an amalgamation of expertise in corporate finance and real estate for the markets’ most urgent needs. Our broad experience in sourcing, developing and managing real estate and institutional investors’ funds provides the fund’s target investors with the professional competence that is required to conserve and enhance value in times of restricted growth.”

Alexander Garbe, a Managing Partner of Garbe Group:

“This cooperation means a teaming-up of “hands-on”-managers who deal with solutions instead of complaining about problems. Our tradition as a family-owned business and comparable structures on our partner’s side provide the level of flexibility which is essential for the tasks ahead.”

Dr. Geza Martin Toth-Feher, Chairman of CB Equity Partners in London:

“We are excited to be able to introduce a product that will provide a valuable exit alternative or an express way to an exit which would otherwise not be available to our target investors. We believe that the combination of our corporate finance expertise and the extensive track record of Garbe Group will allow us to manage the investment fund in the best possible way and to combine real estate and corporate finance expertise. This will also be attractive to financing banks, as ultimately we intend to de-lever the portfolio from its existing level.”

For further information please contact: Dr. Geza Martin Toth-Feher Chairman CB Equity Partners GmbH Main: +44-207-499-4596 Mob: +44-7818-452-271 Email: geza.toth@cbequity.com Jan Alexander Gehrmann Chief Operating Officer 1st RED AG Main: +49(0)40-35-613-1070 Email: j.gehrmann@1st-red.com

Source: CB Equity Partners

Dr. Geza Martin Toth-Feher, Chairman, CB Equity Partners GmbH, Main: +44-207-499-4596, Mob: +44-7818-452-271, Email: geza.toth at cbequity.com; Jan Alexander Gehrmann, Chief Operating Officer, 1st RED AG, Main: +49(0)40-35-613-1070, Email: j.gehrmann at 1st-red.com