Announcement

TAG Immobilien AG: TAG Immobilien AG acquires 420-unit residential complex in Chemnitz

Purchase price totals EUR 23.75 million * Acquired by means of capital increase against contribution

TAG Immobilien AG: TAG Immobilien AG acquires 420-unit residential complex in Chemnitz

TAG Immobilien AG / Key word(s): Capital Increase

25.10.2011 / 14:38

---------------------------------------------------------------------

* Purchase price totals EUR 23.75 million
* Acquired by means of capital increase against contribution in kind of
859,339 new shares at EUR 8.25 per share
(Hamburg, 25 October 2011) TAG Immobilien AG (TAG in the following) today
acquired a residential complex of approximately 420 units in Chemnitz for
EUR 23.75 million, further expanding its portfolio in the state of Saxony.
The self-contained residential complex in a highly attractive location in
southern Chemnitz was completed in 1980. In the years 2001 to 2003 it
underwent a high-quality renovation and modernisation process, and spacious
rooftop terraces were added to some of the units. The development contains
total rental space of around 32,000 m², most of which are the 2- to 4-room
units sought after by the market. The actual rent is at around EUR 1.8
million per year, which corresponds to EUR 4.64/m². At this time, new
rental contracts can be signed at prices of up to EUR 5.50/m². The overall
occupancy rate is over 96 percent. The properties are in the direct
vicinity of Leipzig, where TAG already has properties, so that the newly
acquired properties can be integrated in the TAG portfolio and
cost-effectively managed by the local office with the existing team.
Today's acquisition further expands the TAG Group portfolio, which will
comprise more than 30,700 residential units once the transaction is
complete.

The purchase will be achieved by means of a capital increase against
contribution in kind. To this end, the Management Board has decided, based
on the capital authorised by the Gen-eral Meeting on 7 April 2011 and
subject to approval by the Supervisory Board, to issue 859,339 new shares.
The new shares will be issued at 8.25 euros per share, which corre-sponds
to a value of EUR 7.1 million. In addition to the share issue, a bank loan
in the amount of EUR 16.4 million at 4.5 percent p.a. with a long-term
maturity and a shareholder loan in the amount of approximately EUR 3
million will be assumed.

This capital increase excludes the shareholders' statutory subscription
rights, and will increase TAG's share capital - currently 64,428,083 shares
- to 65,287,422 shares. The acquisition of the company shares is subject to
the entry of the capital increase in the company register, which is
scheduled to take place by year-end 2011. The seller is a private investor
who wishes to acquire a long-term stake in TAG.

As part of its growth strategy focussed on selected regional locations with
potential for growth and attractive yields, TAG is continually
strengthening its market position. 'Like our other purchases this year,
this acquisition will have a positive impact on our cash flow,
profitability and NAV per share. We were able to buy at a factor of 13,
with rents still strongly increasable, and our shares were accepted as
currency at 8.25 Euros each. This underscores the level of confidence in
our company,' says TAG Immobilien AG CEO Rolf Elgeti.


End of Corporate News

---------------------------------------------------------------------

25.10.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------


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  
---------------------------------------------------------------------  
143396 25.10.2011