(Hamburg, 17 November 2011) TAG Immobilien AG (TAG in the following) continues on its expansionist course. In an ad hoc release this morning, the company announced it would implement a capital increase of up to 5,000,000 new shares against cash contributions, to finance further acquisitions.

The Management Board of TAG Immobilien AG today decided, with the approval of the Supervisory Board, to issue up to 5,000,000 new shares against cash contributions, under exclusion of the shareholders' statutory subscription rights. The shares will be offered to qualified investors in the European Economic Area and Switzerland by way of a private placement. The offer price is EUR 6.10 per share. The final issue volume will be published today following a book-building process. The company's registered share capital of currently EUR 69.9 million will increase to as much as EUR 74.9 million. The new shares will be admitted for trading on the regulated market the Frankfurt Stock Exchange (Prime Standard) as soon as the capital increase has been entered in the commercial registry, which the company expects will happen in the next few days, and will carry dividend rights for the 2011 fiscal year. Close Brothers Seydler Bank AG, Frankfurt am Main, and Kempen & Co. N.V., Amsterdam, will jointly manage the capital increase.

The capital increase against cash will serve to finance further acquisitions. TAG is currently in negotiations regarding the acquisition of various residential real estate portfolios. The contracts are to be finalised and signed in the next few months. The properties being considered are located in Berlin and Thuringia and could be cost-effectively managed by the TAG group's existing branches. The rental space in the Berlin region amounts to nearly 170,000 m² and around 2,900 units. Negotiations in Erfurt concern approximately 360 units with roughly 20,000 m² of residential space plus commercial spaces. The acquisitions once again reflect the TAG group's strategy of investing in locations or German metropolitan regions where it already has holdings. Given the properties' development potential and projected gross yield of between 9 and 10 percent, the acquisitions could contribute considerably to improving profitability. Alternatively, if the funds raised by the equity offering cannot be used for acquisitions, they are to be used to pay down debt.

"The capital market environment is not exactly easy at this time, and the issuance of shares so clearly below the NAV only makes sense in exceptional cases. However, these three portfolios are so lucrative that ultimately the NAV won't be diluted and we will still be able to comfortably meet our NAV target of EUR 8.75 per share by the end of the year. At the same time we can achieve considerable contributions to earnings for the next years from these portfolios," explains TAG Immobilien AG CEO Rolf Elgeti.

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