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 Increase01.11.2011 / 11:38---------------------------------------------------------------------* Capital increase against contribution in kind successfully achieved in adifficult market environment* The acquisition is complete with the registration of the capital increaseby approx. 5.5 million new shares at EUR 8.00 per share in the commercialregister(Hamburg, 1 November 2011) The acquisition of a property portfolio with3,083 residential units and 71 commercial units at a purchase price ofapproximately EUR 150 million by TAG Immobilien AG (TAG in the following)agreed on 26 July 2011 has been successfully completed with the capitalincrease entered in the commercial register on 1 November. TAG largelyfinanced the purchase by issuing 5,476,924 new shares at a price of EUR8.00 per share and settled the acquisition with a capital increase againstcontribution of shares in the property companies that own stakes in theportfolio.The capital increase using the authorised capital excluded subscriptionrights. Once all conditions had been met, especially the long-termrefinancing of the entire portfolio by a German bank, and the confirmationof its intrinsic value by the auditor of the non-cash contribution, thecontract of 26 July 2011 was transacted according to plan. The new shareswill be registered on 2 November 2011 on the regulated market of theFrankfurt Stock Exchange.The completion of the capital increase enlarges TAG's share capital fromEUR 64.4 million to EUR 69.9 million. Following the conclusion of thetransaction, the portfolio vendor owns a 7.8 percent stake in TAG, and TAGGroup's total residential inventory increases to 30,285 units.The regional focus of the portfolio is in Northern Germany and Saxony, sothat the existing TAG Group branches in Hamburg and Leipzig can take overthe management of the acquired properties at very little cost. The rentalspace totals 208,393 m², net rent is EUR 12.7 million per annum, and thepurchase price amounts to approximately EUR 150 million. The vast majorityof the properties are located in various cities in Northern Germany with afocus on the periphery of Hamburg, Wolfsburg and Cuxhaven, and around aquarter in Saxony - in and around Dresden and Leipzig. The vacancy rate is6.3 percent. Most of the buildings are post-war as well as new buildingsfrom the end of the 1990s in excellent condition. This is reflected in theactual rent, which averages about EUR 5.42 per m² per month.'TAG can manage the newly acquired properties with its existinginfrastructure and manpower,' says TAG CEO Rolf Elgeti. 'Like our otheracquisitions, this will have a positive impact on our cash flow and NAVper share. The fact that the sellers accepted our shares as currency at aprice of EUR 8 underscores the confidence placed in our strategy even inturbulent times.'End of Corporate News---------------------------------------------------------------------01.11.2011 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 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