MERLIN Properties makes three new acquisitions in December

• In December 2014, MERLIN Properties acquired an office building and two logistics warehouses for an aggregate amount of 88.4 million euros.

• The office building, located in the Barcelona World Trade Center Almeda Park (“WTCAP”) business park, has a gross leasable area (GLA) of 14,543 sqm and is partially let to blue chip tenants such as Panasonic, Technip and Colt Telecom.

• The logistics warehouses are located in the Logistics Supply Centre (CLA) in Getafe, Madrid, let under a long-term lease to Transportes Souto; and in the Júndiz business park, Vitoria, let under a long-term lease to international logistics operator Norbert Dentressangle.

• With these acquisitions, MERLIN Properties’ real estate portfolio amounts to a total GLA in excess of 680,000 sqm, which generates gross rental income of 128.8 million euros per annum.

One of the acquisitions was an office building located at number 8 in the WTCAP in Barcelona for 36.5 million euros. This is the second acquisition made by MERLIN Properties within this location following the purchase in August of the building located at number 6. The newly acquired building has a GLA of 14,543 sqm, more than 700 sqm of storage space and 247 parking spaces. The building is already partially let to blue chip multinationals Panasonic, Technip and Colt Telecom. The acquisition price reflects an initial gross yield, according to EPRA recommendations, of 5.6% (4.8% net), while also offering high growth potential through the leasing of the unoccupied space, some 35% of the surface area. In a full occupancy scenario, the acquisition price would reflect a yield in excess of 8%.

MERLIN Properties also continues to focus on logistics and industrial assets, a category in which it already manages a GLA of over 136,000 sqm. In December MERLIN also acquired:

• A logistics warehouse of 16,242 sqmlocated in the Logistics Supply Centre (CLA) in Getafe, Madrid, let under a 10-year lease to Galician logistics operator, Transportes Souto. The acquisition price of 12.75 million euros reflects a gross and net yield, according to EPRA recommendations, of 8.4%.

• A logistics warehouse of 72,717 sqm located in the Júndiz Business Park, Vitoria, known for its excellent transport links and for being the site of the only Mercedes Benz factory in Spain, as well as the home to premium companies such as Correos, DHL, DB Schenker, Azkar (Dachser) and Adif. The warehouse is let under a 10-year lease to well-known logistics operator Norbert Dentressangle. The acquisition price of 28.58 million euros reflects a gross and net yield, according to EPRA recommendations, of 9.6%.

Following these acquisitions, MERLIN Properties’ real estate portfolio, which now has a GLA in excess of 680,000 sqm, generates gross rental income of 128.8 million euros per annum.