Hamburg / Berlin, 24 February 2010 - TAG Immobilien AG (Hamburg) is acquiring a stake of around 15% in ESTAVIS AG as a strategic investor. The investment is being carried out through the issue of some 1.4 million new shares as a capital increase against contributions in kind.

"The transaction with TAG Immobilien AG is a great mark of confidence in the potential of our business model and underlines our competence as an exit partner for portfolio holders," says Florian Lanz, Chief Executive Officer of ESTAVIS AG. "At the same time we are acquiring a unique listed property in the heart of Berlin that will enable us to tap additional growth potential in our core business field."

The strategy of TAG is geared towards long-term value enhancement. To this end the company concentrates on active asset management and the development of the portfolio. "We have confidence in ESTAVIS and the prospects of its business model," says Rolf Elgeti, Chief Executive Officer of TAG Immobilien AG.  ESTAVIS AG is one of the leading companies in the market for individual sales of listed buildings to private investors in Germany. We regard very positively the partnership with an exit-orientated company such as ESTAVIS ", added Elgeti.

Capital increase against contributions in kind

The capital increase is being carried out through partial utilisation of the approved capital. 1,446,808 new bearer shares are being issued at a nominal amount of EUR 1.00 per share. The shareholders´ subscription rights are excluded.

The subscription price of EUR 2.35 per share is equivalent to a premium of around 37% on the closing price in Xetra of 23 February 2010 (EUR 1.72).

As a result of the capital increase, the share capital of ESTAVIS AG is increasing from EUR 8,099,427 to EUR 9,546,235. The new shares are subject to a minimum lock-up period of one year.

The contributions in kind comprise an unencumbered listed property in a very sought after location in the centre of Berlin. On a total area of some 3,900 square metres, 54 apartments and loft apartments are being created through the planned refurbishment of the property built in 1910. The apartments will meet the requirements for special tax incentives in accordance with section 7 of the German Income Tax Act which permit the buyer to write down all refurbishment expenses within 12 years.

ESTAVIS expects revenues of some EUR 13 million from the sale of the listed apartments.

About ESTAVIS

ESTAVIS offers institutional and private investors bespoke solutions in the context of residential real estate in Germany. Options extend from the conceptualisation of new commitments all the way to the liquidation of existing direct or indirect single or portfolio investments. To this end, ESTAVIS will orient the entire supply chain to a successful exit, including acquisition, optimisation, and eventual sale. An essential success factor and competitive advantage of ESTAVIS is the company´s clout in property retailing. ESTAVIS AG is seated in Berlin, and is listed in the Prime Standard of the Frankfurt stock exchange (ISIN: DE000A0KFKB3).

Contact:
ESTAVIS AG
Peter Vogt
Investor & Public Relations
Tel.: + 49 (0)30 - 887 181 799
Fax: +49 (0) 30 - 887 181 779
E-mail: ir(at)estavis.de

 

About TAG

TAG Immobilien AG is a listed real estate group which can look back on a history spanning 125 years. Its main business activities entail residential and commercial real estate in German metropolitan regions as well as the provision of real estate services. Thanks to active asset management and individual portfolio development activities, TAG harnesses the potential available for boosting rental income. As a matter of principle, the Company's activities concentrate on generating stable cash flows and achieving attractive returns.

Press inquiries:
TAG Immobilien AG
Britta Lackenbauer / Dominique Mann
Investor & Public Relations
Phone: +49 (0) 40 380 32 300
Fax: +49 (0) 40 380 32 390
pr(at)tag-ag.com