(Hamburg, 7 December 2006). TAG Tegernsee Immobilien- und Beteiligungs-Aktiengesellschaft is acquiring 90% of the capital of Bau-Verein zu Hamburg Gewerbeimmobilien GmbH. The remaining 10% will continue to be held by Bau-Verein zu Hamburg Aktien-Gesellschaft ("Bau-Verein"), a subsidiary of TAG Tegernsee.

By taking this step, the TAG Group is responding to the draft German REIT bill. As German Federal Finance Minister Peer Steinbrück has excluded residential properties from the new law, listed REIT companies will in all likelihood be confined to commercial real estate. Accordingly, Bau-Verein will be continuing to consistently focus on the German housing market and simultaneously scaling back its activities in the commercial real estate segment. The proceeds from the sale will be used as a basis for further internally financed growth at Bau-Verein.

The two companies´ Supervisory Boards approved this extension to the corporate structure on 7 December 2006.