(Hamburg, 11 January 2012) TAG Immobilien AG ("TAG" for short) has today acquired via a share deal a real estate portfolio comprising 1,057 residential units and 11 commercial units located north of Berlin and held by a private housing company.

The units acquired entail a contiguous residential estate with a total rental area of 59,911 sqm. Built in the 1970s/1980s, the buildings underwent extensive renovation in 1999-2001 to bring them into line with modern energy and residential standards. The portfolio is situated in an attractive location in Eberswalde, north of Berlin. The net rental generated by the newly acquired real estate comes to EUR 2.9 million per year, with the purchase price standing at some EUR 30 million. The current rental is only EUR 4.04 per sqm, thus providing considerable potential for rental growths. The vacancy rate stands at around 7 percent. The real estate can be managed inexpensively by the TAG Group's existing office in Berlin. The portfolio will be transferred to the TAG Group within the first quarter of 2012. This portfolio is one of the acquisitions which TAG had announced prior to its last equity issue in November.

"Today's acquisition additionally increases the TAG Group's portfolio in Berlin to around 10,000 units. In 2012, the Berlin region will remain a focus of our growth strategy of investing in selected regional areas offering potential for development and attractive returns. We believe that suburban areas and commuter towns around large German cities offer a particularly favourable risk/reward ratio as they combine potential for rental growths with at-tractive initial returns," says Rolf Elgeti, TAG's CEO.

Press inquiries:

TAG Immobilien AG
Investor and Public Relations
Britta Lackenbauer / Dominique Mann
Tel. +49 (0) 40 380 32 0
Fax +49 (0) 40 380 32 390
pr@tag-ag.com