Legal risks

In addition to the usual legal disputes that arise in the sector (especially against tenants), CA Immo faces the risk of disputes with, for example, joint venture and project partners. There is also potential for disputes arising over past and future sales of real estate as well as annulment actions brought by shareholders in connection with resolutions of the Ordinary General Meeting or review of the exchange ratio applied in the 2010 merger of CA Immo International AG and CA Immo. Legal disputes are monitored and managed centrally by the legal department. At present, no lawsuits or arbitration proceedings that could threaten the company’s survival are imminent or pending. Almost all pending actions relate to conventional operational business activity. Sufficient provisions are formed as necessary; as at 31 December 2011, these amounted to approximately € 7,726 K (CA Immo Group). In addition, the joint venture partner of the ‘Maslov’ project has filed an arbitration claim for € 48,097 K (including interest). CA Immo considers the chances of this action succeeding as minimal. For the expected cash outflow an adequate provision has been made.

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