TAG acquires residential real-estate portfolio with 3,154 units - approx. 5.5 million new shares to be issued at 8 EUR per share in a capital increase against contribution in kind

TAG Immobilien AG  / Key word(s): Real Estate

26.07.2011 18:41

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TAG Immobilien AG (also referred to as TAG in the following) today
purchased a real estate portfolio of 3,083 residential units and 71
commercial units from a fund. Northern Germany and Saxony form the regional
focus of the portfolio, so that the properties can be managed
cost-effectively by the TAG group's existing offices in Hamburg and
Leipzig. The total rental space is 208,393 m², with net rent at EUR 12.7
million p.a., and the purchase price is around EUR 150 million; the issue
price of the new shares has been agreed at 8 EUR per share.

As part of the transaction, the sellers will give to TAG, as a contribution
in kind, shares in five property companies that own the portfolio.
Therefore, the Management Board has today decided to utilise the capital
authorised by the General Meeting on 7 April 2011, and pending the approval
of the Supervisory Board, to issue 5,476,924 new shares against
contribution of the shares in the property companies. In addition to the
issuance of shares, a payment in the amount of up to approx. EUR 9 million
was agreed. The statutory subscription right of shareholders is excluded.
The capital increase increases the share capital from currently EUR 64.4
million to EUR 69.9 million. The purchase of shares is contingent upon the
entry of the capital increase in the commercial registry, which is
scheduled for autumn 2011. Once the transaction is concluded, the sellers
of the portfolio will own 7.8 % of the voting rights in TAG.

The transaction will increase the TAG group's residential real-estate
volume by 10 % to 2,180,006 m² or 30,285 units.

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Language:     English
Company:      TAG Immobilien AG
              Steckelhörn 5
              20457 Hamburg
Phone:        040 380 32 300
Fax:          040 380 32 390
E-mail:       ir@tag-ag.com
Internet:     www.tag-ag.com
ISIN:         DE0008303504
WKN:          830350
Indices:      SDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard), München;
              Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
End of Announcement                             DGAP News-Service