SPECIAL PURPOSE CONDENSED COMBINED FINANCIAL … · special purpose condensed combined financial statements of eurocor ii s.à r.l., eurocor iii s.à r.l. and their subsidiaries for

SPECIAL PURPOSE CONDENSED COMBINED FINANCIAL STATEMENTS OF

EUROCOR II S.à r.l., EUROCOR III S.à r.l. AND THEIR SUBSIDIARIES

FOR THE PERIOD FROM 1 JANUARY 2018 TO 30 JUNE 2018

LOGICOR GROUP

Deloitte.

To the Boards of Managers of

Eurocor II S.a r.I. and Eurocor Ill S.a r.I.

2-4 Rue Eugene Ruppert

L-2453, Luxembourg

Deloitte Audit Societe a responsabilite limitee

560, rue de Neudorf L-2220 Luxembourg BP 1173 L-1011 Luxembourg

Tel: +352 451 451 www.deloitte.lu

Report on Review of the Special Purpose Condensed Combined Financial Statements

Introduction

We have reviewed the accompanying special purpose condensed combined statement of financial position of Eurocor II

S.a r.I. and Eurocor Ill S.a r.I. and their subsidiaries at June 30, 2018, and the related special purpose condensed

combined statements of comprehensive income, changes in invested capital and cash flows for the 6 month period then

ended and a summary of significant accounting policies and other explanatory notes. The Boards of Managers are

responsible for the preparation and fair presentation of this special purpose condensed combined interim financial

statements in accordance with the basis of preparation and combination as described in note 2 to the special purpose

condensed combined interim financial statements. Our responsibility is to express a conclusion on this special purpose

condensed combined interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements ("ISRE") 2410 "Review of

Interim Financial Information Performed by the Independent Auditor of the Entity". A review of the interim special purpose

condensed combined financial statements consists of making inquiries, primarily of persons responsible for financial and

accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an

audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain

assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do

not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying special purpose

condensed combined interim financial statements is not prepared, in all material respects , in accordance with the basis

of preparation and combination as described in note 2 to the special purpose condensed combined interim financial

statements.

Emphasis of Matter - Basis of accounting

We draw your attention to note 2 to the special purpose condensed combined interim financial statements, which

describe the basis of accounting. The basis of accounting is derived from International Financial Reporting Standards

("IFRS") as adopted by the European Union ("IFRS EU") with one departure in relation to IFRS 10 - Consolidated

Financial Statements. Our conclusion is not modified in respect of this matter.

d'Entreprises Agree

October 17, 2018

Societe a responsabil1te lim1tee au capital - 1 -RCS Luxembourg B 6 7.895 Autorisat1on d'etablissement : 10022179

LOGICOR GROUP

Special Purpose Condensed Combined Statement of Comprehensive Income For the period from 1 January 2018 to 30 June 2018

- 2 -

Period ended

30 June

2018

Note €m

Revenue 4 392

Net rental income 4 337

Property operating expense, net of recoveries 4 (19)

_______

Net operating income 318

Administrative expenses (38)

Gain/(loss) on disposal of investment properties 7 -

Fair value movement of investment properties 7 170

_______

Operating profit 450

Net finance costs 5 (186)

_______

Profit/(loss) before tax 264

Taxation 6 (37)

_______

Profit/(loss) for the financial period 227

_______

Other comprehensive income

Items that may be subsequently reclassified to profit or loss

Currency translation differences (10)

_______

Other comprehensive income/(loss) for the period (10)

_______

Total comprehensive income/(loss) for the period 217

______

No comparatives are presented as there were no transactions between 1 June 2017, the date of incorporation of the Top Companies

and 30 June 2017.

The notes on pages 6 to 14 are an integral part of these special purpose condensed combined financial statements.

LOGICOR GROUP

Special Purpose Condensed Combined Statement of Financial Position As at 30 June 2018

- 3 -

As at As at

30 June 31 December

2018 2017

Note €m €m

Assets

Non-current assets

Investment properties 7 12,342 12,183

Goodwill and intangible assets 9 651 651 Property, plant and equipment 3 3

Deferred tax asset 73 66

Trade and other receivables 50 33 Other investments 8 42 42

_______ _______

13,161 12,978

Current assets

Cash and cash equivalents 527 557 Trade and other receivables 158 158

Current tax asset 12 11

_______ _______

697 726 _______ _______

Total assets 13,858 13,704

_______ _______

Current liabilities

Borrowings 10 (21) (15) Loans due to Owners of the Group 13 (40) (38)

Trade and other payables (228) (249)

Current tax liabilities (79) (84)

_______ _______

(368) (386)

Non-current liabilities

Borrowings 10 (6,816) (6,811) Loans due to Owners of the Group 13 (2,150) (2,150)

Deferred tax liabilities (803) (777)

_______ _______

(9,769) (9,738)

_______ _______

Total liabilities (10,137) (10,124)

_______ _______

_______ _______

Net assets 3,721 3,580

_______ _______

Share capital - -

Share premium and capital contribution 12 3,537 3,613

Foreign currency translation reserve (13) (3)

Retained earnings/(losses) 197 (30) _____ _______

Invested Capital 3,721 3,580

_______ _______

The special purpose condensed combined financial statements on pages 2 to 14 were approved by the Boards of Managers on October 17, 2018


LOGICOR GROUP

Special Purpose Condensed Combined Statement of Change in Invested Capital For the period ended 30 June 2018

- 4 -

Foreign

Share premium currency Retained

Share and capital translation earnings/ Invested

capital contribution reserve (losses) capital

€m €m €m €m €m

Balance at 31 December 2017 - 3,613 (3) (30) 3,580

_______ _______ _______ _______ _______

Profit/(loss) for the period - - - 227 227

Currency translation differences - - (10) - (10)

Capital contributions repaid to

Owners of the Group - (76) - - (76)

_______ _______ _______ _______ _______

Balance at 30 June 2018 - 3,537 (13) 197 3,721

_____ _____ _____ _____ _____

No comparatives are presented as there were no transactions between 1 June 2017, the date of incorporation of the Top Companies and 30 June 2017.


LOGICOR GROUP

Special Purpose Condensed Combined Statement of Cash Flows For the period ended 30 June 2018

- 5 -

Period ended 30 June 2018 Note €m Cash flows from operating activities Profit/(loss) before tax 264

Adjustments for:

(Gains)/losses on revaluation of investment properties 7 (170) Depreciation and amortisation 1

Impairment charge for trade receivables

Net finance costs 5 186

Changes in working capital

(Increase)/decrease in trade and other receivables (3)

(Increase)/decrease in tenant incentives (17) Increase/(decrease) in trade and other payables (25)

Increase/(decrease) in deferred income 2

Other operating income

Tenant deposits received 2

______

Net cash generated from operations 240

Interest paid to third parties (57) Tax paid (20)

_____

Net cash inflow from operating activities 163

_____

Cash flows from investing activities

Purchases of intangible assets (1) Acquisitions of subsidiaries, net of cash acquired -

Proceeds from sale of investment properties 2

Capital expenditure on investment properties 7 (32) _____

Net cash outflow from investing activities (31)

_____

Cash flows from financing activities Proceeds from share premium and capital contribution -

Proceeds from borrowings - Proceeds from loans due to the Owners of the Group -

Repayment of borrowings (2)

Repayment of borrowings to former Owners of the Group - Financing fees paid (1)

Interest paid to Owners of the Group 13 (83)

Capital contributions repaid to Owners of the Group 12 (76) _______

Net cash (outflow)/inflow from financing activities (162)

_______

Net increase in cash and cash equivalents (30)

Cash and cash equivalents at beginning of period 557

Foreign exchange gains/(losses) on cash and cash equivalents 10 - _______

Cash and cash equivalents at end of the period 527

_______

No comparatives are presented as there were no transactions between 1 June 2017, the date of incorporation of the Top Companies and 30 June 2017.


LOGICOR GROUP

Notes to the Special Purpose Condensed Combined Financial Statements For the period ended 30 June 2018

- 6 -

Note 1: General Information

The reporting entities Eurocor II S.à r.l. and Eurocor III S.à r.l. (‘the Top Companies’) are private limited companies incorporated and domiciled in

Luxembourg. Both of the reporting entities were incorporated on 1 June 2017 with their registered offices located at Rue Eugène Ruppert 2-4

Luxembourg, Luxembourg. Eurocor II S.à r.l.’s immediate parent is Majority Midco S.à r.l. and the ultimate parent is China Investment Corporation.

Eurocor III S.à r.l.’s immediate parent is Minority Midco S.à r.l. and the ultimate parents are Investment funds operated by Blackstone Group LP.

On 2 June 2017, real estate funds managed by Blackstone agreed to sell their pan European logistics entities, ‘Logicor’, to a syndicate controlled by

China Investment Corporation to create ‘The Logicor Group’ (or ‘The Group’). This transaction completed on the 29 November 2017 and therefore the

Group’s principal trading activities commenced from that date.

The Group holds major portfolios of investment properties across Europe (under the trading name ‘Logicor’). Eurocor II S.à r.l. and Eurocor III S.à r.l. own all of the assets in the group with the ownership split 82% and 18%, respectively. The reporting period for the special purpose condensed combined

financial statements is for the period from 1 January 2018 to 30 June 2018.

Note 2: Significant Accounting Policies

Basis of preparation and combination

The condensed set of financial statements included in this special purpose condensed combined financial statements has been prepared in accordance

with IAS 34 “Interim Financial Reporting” as adopted by the European Union except for the below exceptions.

The Logicor Group does not constitute a separate legal group due to the absence of common control between the entities. The special purpose condensed

combined financial statements, which have been prepared specifically for the purpose of fulfilling the requirements of the Group’s investors, are prepared on a basis that combines the results, assets and liabilities of each of the companies constituting the Logicor Group by applying the principles

underlying the consolidation procedures of IFRS 10 “Consolidated Financial Statements” (“IFRS 10”) as at and for the period ended 30 June 2018 as if the Top Companies were under common control. On such basis, the special purpose condensed combined financial statements set out the Logicor

Group’s special purpose condensed combined statement of financial position as of 30 June 2018 and the special purpose condensed combined statements

of comprehensive income, changes in invested capital and cash flow for the period then ended.

Applying IFRS 10 in these special purpose condensed combined financial statements is a departure from IFRS as the financial statements of Eurocor II

S.à r.l. and Eurocor III S.à r.l. are combined despite an absence of common control between them.

The following exchange rates are used to translate foreign currency denominated amounts:

The principal exchange rates applied to €1 as at balance date were:

30 June 31 December

2018 2017

Pound Sterling 0.8847 0.8889

Swedish Krona 10.4537 9.8299

The principal exchange rates applied to €1 for the period ended:

Pound Sterling 0.8795 0.8830

Swedish Krona 10.1511 9.9351

Certain amounts which are presented in the special purpose condensed combined financial statements have been subject to rounding adjustments;

accordingly, figures shown as totals in certain tables may not be an arithmetic aggregation of the figures which precede them or from which they are

derived or extracted.

Going concern

The Boards of Managers of the Top Companies have, at the time of approving the special purpose condensed combined financial statements, a reasonable

expectation that The Top Companies and the Group have adequate resources to continue in operational existence for the foreseeable future. The Boards of Managers therefore continue to adopt the going concern basis of accounting in preparing the financial information.

Accounting policies

The special purpose condensed combined financial statements have been prepared on the basis of the accounting policies, significant judgements, key

assumptions and estimates as described in the special purpose combined financial statements for the period ended 31 December 2017 except for the Other investments, which have not been revalued during the period from 1 January 2018 to 30 June 2018.

LOGICOR GROUP

Notes to the special purpose condensed combined financial statements (continued)

For the period ended 30 June 2018

- 7 -

Application of new accounting standards, amendments and interpretations

The following accounting standards or interpretations were effective for the period beginning 1 January 2018 and have been applied in preparing these

special purpose condensed combined financial statements to the extent they are relevant to the preparation of financial information:

IFRS 9 ‘Financial instruments’

IFRS 15 ‘Revenue from contracts with customers’ IFRIC 22 ‘Foreign currency transactions and advance consideration’

Amendments to IAS 40 ‘Investment property’

IFRS 9 ‘Financial instruments’ addresses the classification, measurement and recognition of financial assets and financial liabilities. As a result of

implementing the standard there have been classification changes of financial assets but these do not have any impact on their measurement as the

treatment under the new classification is in line with that for the period ended 31 December 2017. IFRS 9 ‘Financial instruments’ also introduces an

expected credit losses model for assessing the impairment of financial assets, as a result of the new standard the Group has changed its accounting

policy to assess financial assets for impairment by calculating their expected credit losses based on historical information. The impact of this policy

change is an immaterial change in the value of the provision for doubtful debts.

IFRS 15 ‘Revenue from contracts with customers’ combines a number of previous standards, setting out a five-step model for the recognition of revenue

and establishing principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's contracts with customers. The new standard does not apply to gross rental income, but does apply to service

charge income, management and performance fees and trading property disposals. As a result of adopting IFRS 15 ‘Revenue from contracts with

customers’ there has been no change in measurement in the financial statements. Additional disclosures will be required in the special purpose combined financial statements for the year ended 31 December 2018.

IFRIC 22 ‘Foreign currency transactions and advance consideration’ and the amendments to IAS 40 ‘Investment property’ have no impact on these financial statements.

A number of new standards and amendments to standards and interpretations have been issued but are not yet effective for the Group. The most

significant of these and their potential impact are set out below:

IFRS 16 – Leases (effective for annual periods beginning 1 January 2019). For lessees, it will result in almost all leases being recognised on the balance

sheet, as the distinction between operating and finance leases will be removed. The accounting for lessors will however not significantly change. As a

result, on adoption of the new standard, these changes are not expected to have a material impact on the special purpose condensed combined financial

statements of the Group.

LOGICOR GROUP



- 8 -

Note 3. Segmental reporting

The operating segments derive their revenue primarily from rental income from lessees. All of the Group's business activities and operating segments

are reported within the segments listed:

Period from 1 January 2018 to 30 June 2018

Northern Southern

UK France Europe * Nordics Europe CEE Total

€m €m €m €m €m €m €m

Total Rental Income 88 53 70 46 51 30 337

Total Service Charge income 4 17 8 9 3 13 55

______ ______ ______ ______ ______ ______ ______

Total Revenue 92 70 78 55 54 43 392

Property operating expenses (8) (20) (11) (14) (7) (15) (74) ______ ______ ______ ______ ______ ______ ______

Net Operating Income 84 50 67 41 48 29 318

Administrative expenses (38)

Gain/(loss) on disposal of

investment properties - Fair value movement of

investment properties 170

______

Operating profit 450

Net finance costs (186) ______

Profit before tax 264

______

* A change in management structure during the period ended 30 June 2018 means that the former Benelux and Germany operating segments have been combined to create the Northern Europe segment. The former Benelux segment had €2 million of Revenue and €2 million of Net Operating

Income for the period ended 31 December 2017 which has now been disclosed within the Northern Europe results.

Note 4. Revenue and Property operating expenses, net of recoveries

Revenue

An analysis of the Group's revenue is as follows:

Period ended

30 June

2018

€m

Rental income from investment properties 333

Other property related income 4 ______

Rental income 337

Service charge income 55

______

Total revenue 392

______

Property operating expenses, net of recoveries

The table shows the split of the Group's property operating expenses, net of recoveries:

Period ended

30 June

2018

€m

Service charge income 55

Recoverable service charge costs (55) Other non recoverable costs and costs due to vacancies (19)

______

Property operating expenses, net of recoveries (19)

_____

LOGICOR GROUP



- 9 -

Note 5. Net Finance costs

Period ended

30 June

2018

€m

Interest expense on bank borrowings (63)

Interest expense on finance leases (1)

Interest payable on loans due to Owners of the Group (85) Other finance expense (1)

Amortisation of loan borrowing costs (5)

Net foreign exchange gains/(losses) * (31)

______

Finance costs (186)

______

Net Finance Costs (186)

______

*Net foreign exchange gains/(losses) include €29 million of losses (31 December 2017: €2 million of losses) related to intercompany financing which

is offset in the foreign currency translation reserve.

Note 6. Taxation

Period ended

30 June

2018

(a). Analysis of expense in the period €m

Current tax on profits for the period 13

______

Total current tax 13

______

Deferred tax on profits for the period 24

______

Total deferred tax 24

_____ Income tax expense 37 ______

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to total expected annual earnings.

LOGICOR GROUP



- 10 -

Note 7. Investment Properties

As at As at

30 June 31 December

2018 2017

€m €m

Net book value at the beginning of the period 12,183 -

Property acquisitions arising on business combination - 12,189

Capital expenditure 32 9 Disposals (1) -

Fair value movement of investment properties:

Fair value movements due to foreign exchange 37 (5) Other fair value movements 133 (5)

Currency translation differences (42) (5)

______ ______

Net book value at the end of the period 12,342 12,183

______ ______

The Group's policy is for investment properties to be measured at fair value. The Group completes property valuations at least annually by independent

registered valuers. A valuation has been performed as at 30 June 2018 with the methodology and assumptions being consistent with the valuation performed at 31 December 2017.

The market value of the Group's investment properties, as determined by the Group's external valuers, differs from the net book value presented in the combined statement of financial position due to the Group presenting lease incentives, tenant finance leases and head leases separately. The following

table reconciles the net book value of the investment properties to the reported market value.

As at As at

30 June 31 December

2018 2017

€m €m

Net book value 12,342 12,183

Tenant lease incentives 16 3

Ground leases capitalised (80) (80) ______ ______

Reported market value 12,278 12,106

______ ______

Note 8. Other investments

As at As at

30 June 31 December

2018 2017

€m €m

Opening balance 42 -

Arising from business combination - 42

______ ______

As at 30 June 2018 42 42

______ ______

Contained within the Group’s non-controlling equity investments are options to acquire 3 properties located in Germany, at nil cost, at the end of their third party finance lease period. The options are not separable from the investment, have exercise dates in 2022, 2027 and 2030 and have a fair value

of €42 million. The Group intends to hold these for longer than 12 months, measures them at fair value and classifies them as a 'fair value through

profit or loss' financial asset with changes in fair value recorded in profit and loss.

The Group's policy is to hold the other investments at fair value, with valuations performed at least annually (refer to note 7), with any changes recorded

in the statement of comprehensive income. No valuation has been performed as at 30 June 2018.

LOGICOR GROUP



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Note 9. Goodwill and intangible assets

Cost, amortisation and net book value of intangible assets are as follows:

Goodwill Software Total

€m €m €m

Cost

Opening - - - Arising from business combination 650 1 651

Additions - - -

Currency translation differences - - -

_______ _______ _______

At 31 December 2017 650 1 651

_______ _______ _______

Additions - 1 1 Currency translation differences (1) - (1)

_______ _______ _______

At 30 June 2018 649 2 651

_____ _____ _____

Accumulated amortisation

Opening - - -

Charge for the period - - - _______ _______ _______

At 31 December 2017 - - -

_______ _______ _______

Charge for the period - - - _______ _______ _______

At 30 June 2018 - - -

_______ _______ _______

Net book value at 30 June 2018 649 2 651

_____ _____ _____

The Goodwill balance is a result of the acquisition on 29 November 2017.

The Goodwill and its allocation to cash generating units is currently provisional following finalisation of the measurement period following the

acquisition. Subsequently, the Goodwill will be tested for impairment annually.

Note 10. Borrowings

As at As at

30 June 31 December

2018 2017

€m €m

Current borrowings

Loans – Secured, Floating 17 12 Finance lease obligations 4 3

______ ______

Total current borrowings 21 15

______ ______

Non-current borrowings

Loans – Secured, Floating 6,730 6,723

Finance lease obligations 86 88 ______ ______

Total non-current borrowings 6,816 6,811

______ ______

Total borrowings 6,837 6,826

______ ______

For all borrowings, the fair values are not materially different to their carrying amounts, since the interest payable on those borrowings is close to current market values.

LOGICOR GROUP



- 12 -

Note 10. Borrowings (continued)

30 June 2018

Analysis of movements in Net Debt

Balance at Balance at

beginning Business Exchange Interest 30 June

of period acquisition Cashflow movement expense 2018

€m €m €m €m €m €m

Loans – Secured, Floating (6,779) - 57 (2) (63) (6,787)

Capitalised borrowing costs 44 - - - (5) 39

Finance lease liabilities (91) - 2 - (1) (90)

Total borrowings (6,826) - 58 (2) (69) (6,838)

Cash 557 - (30) - - 527

_______ _______ _______ _______ _______ _______

Net debt (6,269) - 28 (2) (69) (6,311)

_______ _______ _______ _______ _______ _______

Other debt items

Loans due to Owners of the Group (note 13) (2,188) - 83 - (85) (2,190)

_______ _______ _______ _______ _______ _______

Total net debt (8,457) - 111 (2) (154) (8,501)

_______ _______ _______ _______ _______ _______

31 December 2017

Analysis of movements in Net Debt

Balance at Balance at

beginning Business Exchange Interest 31 December

of period acquisition Cashflow movement expense 2017

€m €m €m €m €m €m

Loans – Secured, Floating - - (6,756) (11) (12) (6,779) Capitalised borrowing costs - - 45 - (1) 44

Finance lease liabilities - (91) - - - (91) Borrowings acquired as part

of business combination - (5,924) 5,924 - - -

Total borrowings - (6,015) (787) (11) (13) (6,826)

Cash - 519 15 23 - 557 _______ _______ _______ _______ _______ _______

Net debt - (5,496) (772) 12 (13) (6,269)

_______ _______ _______ _______ _______ _______

Other debt items Loans due to Owners of the

Group (note 13) - - (2,150) - (38) (2,188) _______ _______ _______ _______ _______ _______

Total net debt - (5,496) (2,922) 12 (51) (8,457)

_______ _______ _______ _______ _______ _______

LOGICOR GROUP



- 13 -

Note 11. Net assets by currency

Group Net Assets by Currency

As at 30 June 2018 Pound Swedish

Euro sterling Krona Total

€m €m €m €m

Investment properties 8,491 3,535 316 12,342

Other net assets (132) (18) (12) (162) Cash and cash equivalents 385 120 22 527

Borrowings – loans (4,500) (2,122) (124) (6,746)

Finance lease obligations (88) (2) - (90)

______ ______ ______ ______

Net assets excluding loans due to Owners

of the Group 4,156 1,513 202 5,871

______ ______ ______ ______

Loans due to Owners of the Group (note 13) (2,150) - - (2,150) ______ ______ ______ ______

Net assets 2,006 1,513 202 3,721

_______ _______ _______ _______

As at 31 December 2017 Pound Swedish

Euro sterling Krona Total

€m €m €m €m

Investment properties 8,399 3,449 335 12,183

Other net assets (139) (29) (16) (184)

Cash and cash equivalents 399 137 21 557

Borrowings – loans (4,493) (2,110) (132) (6,735)

Finance lease obligations (89) (2) - (91)

______ ______ ______ ______

Net assets excluding loans due to Owners

of the Group 4,077 1,445 208 5,730

______ ______ ______ ______

Loans due to Owners of the Group (note 13) (2,150) - - (2,150)

_______ _______ _______ _______

Net assets 1,927 1,445 208 3,580

_______ _______ _______ _______

Note 12. Capital Distribution

On 22 March 2018, Eurocor II S.à r.l. repaid a capital contribution to its shareholder of €12 million which is equivalent to €30.52 per share. On 23

May 2018 Eurocor II S.à r.l. repaid a capital contribution to its shareholder of €50 million which is equivalent to €126.40 per share.

On 22 March 2018, Eurocor III S.à r.l. repaid a capital contribution to its shareholder of €3 million, which is equivalent to €29.06 per share. On 23 May 2018 Eurocor III S.à r.l. repaid a capital contribution to its shareholder of €11 million which is equivalent to €114.90 per share.

LOGICOR GROUP



- 14 -

Note 13. Related party transactions

Transactions with related parties

There have been no material changes to, or material transactions with, related parties as described in note 20 of the special purpose combined

financial statements for the period ended 31 December 2017, except for:

The Group repaid some of the capital contribution to its Owners of €76 million during the period ended 30 June 2018, refer to note 12 for details.

The Group has loans from its Owners, details of the outstanding balances follow:

As at As at

30 June 31 December

2018 2017

€m €m

Amount payable to Majority Midco S.à r.l. due within one year * 33 31

Amount payable to Minority Midco S.à r.l. due within one year * 7 7

Amount payable to Majority Midco S.à r.l. due after one year 1,763 1,763 Amount payable to Minority Midco S.à r.l. due after one year 387 387

______ ______

2,191 2,188

______ ______

* The amount payable within one year is the interest payable on the loan balance.

Interest paid to the Owners during the period was €83 million, €68 million was paid to Majority Midco S.à r.l. and €15 million was paid to Minority

Midco S.à r.l.

Interest charged on these loans during the period:

Period ended

30 June

2018

€m

Interest charged by Majority Midco S.à r.l. 70

Interest charged by Minority Midco S.à r.l. 15

______

85

______

The Group earned asset management fee income of €1 million during the period from various funds operated by Blackstone Real Estate Europe.

Note 14. Contingent liabilities

An incentive plan is in the process of being agreed with the senior management team to support the long term retention of key employees. The cost of

this reward will depend on certain future performance targets being met. As these employment agreements are not in place at the balance sheet date,

an employment cost has not been recognised.

Note 15. Post balance sheet events

Eurocor II S.à r.l. repaid the following capital contributions to its shareholder: Equivalent

amount

Amount paid per share

€m €

23 August 2018 10 24.55 ______ ______

Eurocor III S.à r.l. repaid the following capital contributions to its shareholder: Equivalent amount Amount paid per share €m €

23 August 2018 2 22.32

______ ______

Documents

SPECIAL PURPOSE CONDENSED COMBINED FINANCIAL … · special purpose condensed combined financial statements of eurocor ii s.à r.l., eurocor iii s.à r.l. and their subsidiaries for