Announcement

TAG Immobilien AG acquires residential real-estate portfolio with approx. 3,100 units in northern Germany and Saxony

Purchase price around EUR 150 million * Acquisition involves a capital increase against contributions

TAG Immobilien AG acquires residential real-estate portfolio with approx. 3,100 units in northern Germany and Saxony

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

26.07.2011 / 18:42

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* Purchase price around EUR 150 million
* Acquisition involves a capital increase against contributions in kind of
about 5.5 million new shares at 8 EUR per share

(Hamburg, 26 July 2011) TAG Immobilien AG (TAG in the following) today
published an ad hoc announcement of its purchase of a real estate portfolio
of 3,083 residential units and 71 commercial units from a fund.
  
The regional focus of the portfolio lies in northern Germany and Saxony, so
that the properties can be managed very 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 per annum, and the purchase
price is around EUR 150 million. About three-quarters of the real estate
(by square metres) is distributed to various north German cities, with a
focus on the greater Hamburg region, Wolfsburg and Cuxhaven, and roughly a
quarter in Saxony, in and around Dresden and Leipzig. The vacancy rate is
6.3%. Most of the inventory is post-war, or new construction from the late
1990s, in excellent condition, a fact that is reflected in the average
actual rent of approx. 5.42 EUR/m2 per month.

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. The issue price of
the new shares is 8 EUR per share. 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.

Today's acquisition further expands the TAG group's portfolio, increasing
its residential real-estate volume by some 10 percent to 2,180,006 m² or
30,285 units. As part of its growth strategy focusing on select regional
locations that promise development potential and attractive yields, TAG is
continually and sustainably strengthening its position in the German real
estate market.

'Like our earlier acquisitions, this will have a positive impact on our
cash flow, our profitability and our NAV per share. The fact that the
sellers accepted our shares as currency at a rate of 8 EUR, underscores
investors' confidence in our strategy of value creation,' says Rolf Elgeti,
Chairman of the TAG Immobilien AG Management Board.

TAG is able to handle the management of these properties with its existing
infrastructure. To facilitate the transition, however, TAG won't take over
the property management until towards the end of 2012.


End of Corporate News

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Language:    English                                                    
Company:     TAG Immobilien AG                                          
             Steckelhörn 5                                              
             20457 Hamburg                                              
             Germany                                                    
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                                                     
Listed:      Regulierter Markt in Frankfurt (Prime Standard), München;  
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,      
             Stuttgart                                                  
 
 
End of News    DGAP News-Service  
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