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

TAG Immobilien AG / Key word(s): Capital Increase25.10.2011 / 14:38---------------------------------------------------------------------* Purchase price totals EUR 23.75 million* Acquired by means of capital increase against contribution in kind of859,339 new shares at EUR 8.25 per share(Hamburg, 25 October 2011) TAG Immobilien AG (TAG in the following) todayacquired a residential complex of approximately 420 units in Chemnitz forEUR 23.75 million, further expanding its portfolio in the state of Saxony.The self-contained residential complex in a highly attractive location insouthern Chemnitz was completed in 1980. In the years 2001 to 2003 itunderwent a high-quality renovation and modernisation process, and spaciousrooftop terraces were added to some of the units. The development containstotal rental space of around 32,000 m², most of which are the 2- to 4-roomunits sought after by the market. The actual rent is at around EUR 1.8million per year, which corresponds to EUR 4.64/m². At this time, newrental contracts can be signed at prices of up to EUR 5.50/m². The overalloccupancy rate is over 96 percent. The properties are in the directvicinity of Leipzig, where TAG already has properties, so that the newlyacquired properties can be integrated in the TAG portfolio andcost-effectively managed by the local office with the existing team.Today's acquisition further expands the TAG Group portfolio, which willcomprise more than 30,700 residential units once the transaction iscomplete.The purchase will be achieved by means of a capital increase againstcontribution in kind. To this end, the Management Board has decided, basedon the capital authorised by the Gen-eral Meeting on 7 April 2011 andsubject 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-spondsto a value of EUR 7.1 million. In addition to the share issue, a bank loanin the amount of EUR 16.4 million at 4.5 percent p.a. with a long-termmaturity and a shareholder loan in the amount of approximately EUR 3million will be assumed.This capital increase excludes the shareholders' statutory subscriptionrights, 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 tothe entry of the capital increase in the company register, which isscheduled to take place by year-end 2011. The seller is a private investorwho wishes to acquire a long-term stake in TAG.As part of its growth strategy focussed on selected regional locations withpotential for growth and attractive yields, TAG is continuallystrengthening 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 ascurrency at 8.25 Euros each. This underscores the level of confidence inour company,' says TAG Immobilien AG CEO Rolf Elgeti.End of Corporate News---------------------------------------------------------------------25.10.2011 Dissemination of a Corporate News, transmitted by DGAP - acompany 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