Announcement

TAG Immobilien AG: TAG Immobilien AG announces successful acquisition of residential portfolio with over 3,000 units in Northern Germany and Saxony

Capital increase against contribution in kind successfully achieved in a difficult market environment

TAG Immobilien AG: TAG Immobilien AG announces successful acquisition of residential portfolio with over 3,000 units in Northern Germany and Saxony

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

01.11.2011 / 11:38

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

* Capital increase against contribution in kind successfully achieved in a
difficult market environment
* The acquisition is complete with the registration of the capital increase
by approx. 5.5 million new shares at EUR 8.00 per share in the commercial
register

(Hamburg, 1 November 2011) The acquisition of a property portfolio with
3,083 residential units and 71 commercial units at a purchase price of
approximately EUR 150 million by TAG Immobilien AG (TAG in the following)
agreed on 26 July 2011 has been successfully completed with the capital
increase entered in the commercial register on 1 November. TAG largely
financed the purchase by issuing 5,476,924 new shares at a price of EUR
8.00 per share and settled the acquisition with a capital increase against
contribution of shares in the property companies that own stakes in the
portfolio.

The capital increase using the authorised capital excluded subscription
rights. Once all conditions had been met, especially the long-term
refinancing of the entire portfolio by a German bank, and the confirmation
of its intrinsic value by the auditor of the non-cash contribution, the
contract of 26 July 2011 was transacted according to plan. The new shares
will be registered on 2 November 2011 on the regulated market of the
Frankfurt Stock Exchange.

The completion of the capital increase enlarges TAG's share capital from
EUR 64.4 million to EUR 69.9 million. Following the conclusion of the
transaction, the portfolio vendor owns a 7.8 percent stake in TAG, and TAG
Group's total residential inventory increases to 30,285 units.

The regional focus of the portfolio is in Northern Germany and Saxony, so
that the existing TAG Group branches in Hamburg and Leipzig can take over
the management of the acquired properties at very little cost. The rental
space totals 208,393 m², net rent is EUR 12.7 million per annum, and the
purchase price amounts to approximately EUR 150 million. The vast majority
of the properties are located in various cities in Northern Germany with a
focus on the periphery of Hamburg, Wolfsburg and Cuxhaven, and around a
quarter in Saxony - in and around Dresden and Leipzig. The vacancy rate is
6.3 percent. Most of the buildings are post-war as well as new buildings
from the end of the 1990s in excellent condition. This is reflected in the
actual rent, which averages about EUR 5.42 per m² per month.

'TAG can manage the newly acquired properties with its existing
infrastructure and manpower,' says TAG CEO Rolf Elgeti. 'Like our other
acquisitions, this will have a positive impact on our cash flow and NAV
per share. The fact that the sellers accepted our shares as currency at a
price of EUR 8 underscores the confidence placed in our strategy even in
turbulent times.'


End of Corporate News

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

01.11.2011 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 0                                               
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  
---------------------------------------------------------------------  
144259 01.11.2011