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 Increase

06.05.2010 18:30

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
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The issuer is solely responsible for the content of this announcement.


TAG Immobilien AG (or TAG in the following) today acquired 97% of shares in
FranconoWest 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 the
following) and FranconoAdvisory AG (or FRA in the following), TAG adds an
attractive portfolio of 1,852 residential units and 109 commercially used
units to its property holdings. FRW's properties (1,525 units) are in
central locations in the German state of North Rhine-Westphalia, while the
FRA properties (436 units) are in select locations in Saxony. The total
floor space involved is approx. 126,000 m², and the portfolio generates net
target rent of approx. EUR 8 million p.a. The current market value of the
portfolios is estimated at around EUR 104 million.

The total purchase price for the shares is approx. EUR 31.3 million. With
regard to the shares in FRW, the entire purchase price will be provided by
issuing new shares created via a capital increase against contribution in
kind. To this end, the Executive Board today resolved, taking advantage of
the capital authorised by the Annual General Meeting on 27 August 2009 and
pending the approval of the Supervisory Board, to issue 5,581,818 new TAG
shares in return for the shares in FRW. The statutory subscription right of
shareholders is excluded. The capital increase increases the share capital
from currently EUR 34.9 million to EUR 40.6 million. The acquisition of
shares is contingent on the entry of the capital increase in the commercial
register, which is expected to take place in summer of 2010. The
transaction 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 property
holdings by 41% to around 434,000 m² or 6,910 units. The acquisition of FRW
and FRA further enhances TAG's market position in the German real-estate
market and widens its focus, as part of the growth strategy, on select
regional locations with development potential and the expectation of
attractive yields.

TAG Immobilien AG
Investor und Public Relations 
Britta Lackenbauer / Dominique Mann
Tel. +49 (0) 40 380 32 -386 / -305
Fax +49 (0) 40 380 32 390

06.05.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP.
Media archive at www.dgap-medientreff.de and www.dgap.de

Language:     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, Hannover, Düsseldorf, Hamburg,
End of News                                     DGAP News-Service