Evolution of the Take-Up Q2 2009-Q2 2011 The Rollercoaster road to recovery By comparing the second quarters of the past

two years, we can see how volatile the take-up market has been under the pressure of the international crisis. Q2 2010 take-up has had a downward trend as it had to face tough economic conditions (low employment rates, low disposable income and rising unemployment throughout Luxembourgs sectors) whose effects have been limited by the government implementing fiscal measures and a special investment policy. 2009 was about survival whereas 2010 was about finding real estate solutions that are cost effective and sustainable. With the Grand-Duchys economy showing signs of recovery over the last 12 months, the rental market has experienced a renewed interest in rental property which explains the 31.33% increase in the total take-up volume, passing from 51.125 sqm in S1 2010 to 74.446 sqm in S1 2011. Larger deals, 1.000 sqm and above, have been rising from 10.2% (10/98) in S1 2010 to 21.5% (23/107) in S1 2011. Regarding small and medium deals, 38.32% of the deals (66/107 in S1 2011), were below 500 sqm, a 5.67% increase compared to the previous quarters 32.65% (66/98 in S1 2010) so we can assume that the Luxembourgish office market is slowly returning to its traditional dynamism. Evolution of the vacancy rate Q2 2009-Q2 2011 (Navigating in still waters?) After the excitement of the decrease in vacancy rate of the past 6 months, the rates have come to a stabilizing point. Sustained office take-up, (combined with landlords continuing to offer more advantageous rental conditions both in terms of lease duration and incentives offered) and low speculative completion (only 2000 sqm in Q1 2010), have resulted in a decrease in vacancy from 8.14% (Q3 2010), which has been the highest in the past 5 years, to 7.03% (Q1 2011). Two additions on the market, the BHK in Kirchberg (16.200 sqm) and the Marivaux at the Station (4.000 sqm), totalling over 20.000 sqm of new office space, coupled with an increase in subletting units, have made the vacancy rates rise slightly. Based on the data displayed above, we would assume that if the S2 2011 take-up volume stays in line with the S1 2011 trend, coupled with the fact that in S2 2011 we will have a further +20.000 sqm of new office space delivery, we could expect the vacancy rate to fluctuate between 7-7.5% until the end of the year 2011. Rent per sector / medium-range rent Have we reached our price equilibrium? The average rent has remained unchanged at 27/sqm from the previous quarter but do not be fooled by this data because there has been quite some movement in the prime and base rental figures. Prime and base rents are expected to keep rising as the vacancy levels will drop in the short to medium term, following the foreseen shortage of new office space until 2013. In and around the City Centre, prime and base rates have been slightly rising, by 1 to 2/sqm in most areas, however in the periphery, base rents have dropped as far as

6/sqm like in Howald. In a few areas, the rental brackets are narrowing, as the prime and base rents are converging, as it is the case in Bertrange and at the Airport. The CBD is experiencing a new surge in rental prices, raising its base as well as its prime rent by 2/sqm each. Kirchbergs rental figures are on a rising trend (from 30/sqm Q1 2011 to 33/sqm Q2 2011, thus equating to an increase of 10% in a single quarter) which shows how much demand there is for that particular district. Its base rate (27/sqm) is currently exceeding that of the CBD (26/sqm) because the buildings in this district are of recent construction, possess the latest comodo-incomodo standards as well as generally being built to a high standard.