TAG Immobilien AG: TAG Immobilien AG convenes extraordinary general meeting to create a basis for further growth

--------------------------------------------------------------------- 18.02.2011 Dissemination of a

TAG Immobilien AG: TAG Immobilien AG convenes extraordinary general meeting to create a basis for further growth

TAG Immobilien AG / Key word(s): AGM/EGM

18.02.2011 / 18:23

(Hamburg, 18 February 2011) TAG Immobilien AG (TAG in the following) today
issued an ad hoc communication announcing the scheduling of an
extraordinary general meeting on 7 April 2011 and the postponement of its
Annual General Meeting scheduled for 22 June 2011. At the extraordinary
general meeting, a capital increase against cash contributions with
shareholder subscription rights by issuing as many as 5,856,636 new shares
at a subscription price of EUR 7.00 or more will be proposed. This
represents nearly 10 percent of the company's current share capital. The
two-week subscription period for the new shares will begin following the
announcement in the Elektronischer Bundesanzeiger (Electronic Gazette),
which will take place shortly. Shareholders will be offered the new shares
by way of indirect subscription rights through a bank on a 10 to 1 ratio,
meaning each shareholder can subscribe for one new share for every ten
shares they already hold. The new shares will qualify for dividends from 1
January 2011. Non-subscribed shares will be offered for sale in a private
placement in Germany and certain other countries.

The extraordinary general meeting on 7th April 2011 will also vote on
authorising more capital, as the authorisation granted in 2010 has been
fully used to finance the acquisition of Colonia Real Estate AG.

By proposing the capital increase, TAG is responding to the continuing high
interest in its shares. The short-term boost to the company's equity
capital base is called for in view of specific acquisition plans, in order
to quickly seize market opportunities for further growth and expansion of
the portfolio. TAG is currently specifically discussing the acquisition of
two residential real-estate portfolios, which mainly consist of properties
in Berlin. The two portfolios are an excellent strategic match for the
company because the properties are not only focused in Berlin, but are also
located in other places where TAG has holdings. As a result, they can be
integrated into the existing portfolio quickly and without a great deal of
expense. The total investment volume for the two portfolios is
approximately EUR 130 million. These two acquisitions are expected to
conclude within the second quarter of 2011. It therefore makes sense to
promptly decide upon the capital measures necessary to finance the projects
at an extraordinary general meeting and not wait until the annual general
meeting scheduled for 22 June 2011, in order to ensure TAG's flexibility.

The subscription price for the newly issued shares is set at EUR 7.00, and
indicates that TAG not only expects its shares to develop positively, but
also takes seriously the issue of not diluting shareholder interests as it
grows - quite the opposite, in fact. TAG will continue to carry out capital
measures only when specific projects have been secured.

'It goes without saying that any decisions to acquire additional portfolios
will only be taken if the investments will boost the company's profits,
cash flow and NAV. TAG has set out to seize opportunities on the German
property market and use its expertise to create added value for
shareholders. The successes of recent weeks in the process of acquiring
Colonia Real Estate AG encourage us to continue to advance the growth
process by providing new capital. After the deal is before the deal,' said
Rolf Elgeti, CEO of TAG.

TAG is also in further negotiations regarding extensive projects which are
to come to the fore in the second half of this year.

TAG's Annual General Meeting scheduled for 22 June 2011 has been postponed
to 26 August 2011.

Press enquiries:
Dominique Mann / Britta Lackenbauer
Investor & Public Relations 
TAG Immobilien AG
Steckelhörn 5
20457 Hamburg

End of Corporate News


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Language:    English                                                    
Company:     TAG Immobilien AG                                          
             Steckelhörn 5                                              
             20457 Hamburg                                              
Phone:       040 380 32 300                                             
Fax:         040 380 32 390                                             
ISIN:        DE0008303504                                               
WKN:         830350                                                     
Listed:      Regulierter Markt in Frankfurt (Prime Standard), München;  
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,      
End of News    DGAP News-Service  
112806 18.02.2011