TAG Immobilien AG: TAG acquires residential real estate portfolio with 1,961 units, resolves a capital increase against contribution in kind of approx. 5.5 million new shares

TAG Immobilien AG / Capital Increase06.05.2010 18:30Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted byDGAP - a company of EquityStory AG.The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------TAG Immobilien AG (or TAG in the following) today acquired 97% of shares inFranconoWest AG, Düsseldorf from Franconofurt AG (or FFM in the following)and a group of investors, and 100% of shares in FranconoAdvisory AG,Frankfurt am Main, from FFM. By acquiring FranconoWest AG (or FRW in thefollowing) and FranconoAdvisory AG (or FRA in the following), TAG adds anattractive portfolio of 1,852 residential units and 109 commercially usedunits to its property holdings. FRW's properties (1,525 units) are incentral locations in the German state of North Rhine-Westphalia, while theFRA properties (436 units) are in select locations in Saxony. The totalfloor space involved is approx. 126,000 m², and the portfolio generates nettarget rent of approx. EUR 8 million p.a. The current market value of theportfolios is estimated at around EUR 104 million.The total purchase price for the shares is approx. EUR 31.3 million. Withregard to the shares in FRW, the entire purchase price will be provided byissuing new shares created via a capital increase against contribution inkind. To this end, the Executive Board today resolved, taking advantage ofthe capital authorised by the Annual General Meeting on 27 August 2009 andpending the approval of the Supervisory Board, to issue 5,581,818 new TAGshares in return for the shares in FRW. The statutory subscription right ofshareholders is excluded. The capital increase increases the share capitalfrom currently EUR 34.9 million to EUR 40.6 million. The acquisition ofshares is contingent on the entry of the capital increase in the commercialregister, which is expected to take place in summer of 2010. Thetransaction will make give 14% of voting rights in TAG to Franconcofurt AG,making it a major shareholder with a longterm investment outlook.The completion of the transaction will increase the TAG Group's propertyholdings by 41% to around 434,000 m² or 6,910 units. The acquisition of FRWand FRA further enhances TAG's market position in the German real-estatemarket and widens its focus, as part of the growth strategy, on selectregional locations with development potential and the expectation ofattractive yields.Kontakt:TAG Immobilien AGInvestor und Public Relations Britta Lackenbauer / Dominique MannTel. +49 (0) 40 380 32 -386 / -305Fax +49 (0) 40 380 32 390ir@tag-ag.com06.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.Media archive at www.dgap-medientreff.de and www.dgap.de--------------------------------------------------------------------------- Language:     EnglishCompany:      TAG Immobilien AG              Steckelhörn 5              20457 Hamburg              DeutschlandPhone:        040 380 32 300Fax:          040 380 32 390E-mail:       ir@tag-ag.comInternet:     www.tag-ag.comISIN:         DE0008303504WKN:          830350Indices:      SDAXListed:       Regulierter Markt in Frankfurt (Prime Standard), München;              Freiverkehr in Berlin, Hannover, Düsseldorf, Hamburg,              Stuttgart End of News                                     DGAP News-Service ---------------------------------------------------------------------------