Announcement

TAG Immobilien AG improves capital structure and increases NAV by EUR 0.30 through a capital increase at the level of Colonia Real Estate AG

Hamburg, 25 August 2011 - TAG Immobilien AG ('TAG' in the following), is bringing a large part of the

TAG Immobilien AG improves capital structure and increases NAV by EUR 0.30 through a capital increase at the level of Colonia Real Estate AG

TAG Immobilien AG / Key word(s): Corporate Action

25.08.2011 / 15:50

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Hamburg, 25 August 2011 - TAG Immobilien AG ('TAG' in the following), is
bringing a large part of the EUR 75 million general credit line agreement
with Colonia Real Estate AG ('Colonia' in the following) into Colonia
(debt-equity swap). This measure is taken with a view to Colonia's need to
refinance arising from the convertible bond 2006/2011 due for repayment on
7 December 2011, and serves to decrease the interest burden as well as
enable the drawing of further shareholder loans from the general credit
line approved by TAG.

The Colonia Real Estate AG Management Board today decided, with the
approval of the Su-pervisory Board, to use the approved capital to increase
Colonia's share capital from cur-rently EUR 32,994,633 by 11,384,010
shares, through a capital increase. This capital meas-ure leads to an
equity increase at TAG Group level by up to approx. EUR 20 million, and a
EUR 0.30 increase in the Net Asset Value (NAV) per TAG share. At the same
time, this in-creases TAG's holdings in Colonia to approx. 70 percent.

'This step is mutually beneficial for both companies, as it allows us to
optimise the capital structure at TAG level while also increasing the NAV.
At the same time Colonia improves its balance sheet structure and opens up
further options for refinancing,' says Rolf Elgeti, CEO of TAG Immobilien
AG.


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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                                                  
 
 
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