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

TAG Immobilien AG / Key word(s): AGM/EGM18.02.2011 / 18:23(Hamburg, 18 February 2011) TAG Immobilien AG (TAG in the following) todayissued an ad hoc communication announcing the scheduling of anextraordinary general meeting on 7 April 2011 and the postponement of itsAnnual General Meeting scheduled for 22 June 2011. At the extraordinarygeneral meeting, a capital increase against cash contributions withshareholder subscription rights by issuing as many as 5,856,636 new sharesat a subscription price of EUR 7.00 or more will be proposed. Thisrepresents nearly 10 percent of the company's current share capital. Thetwo-week subscription period for the new shares will begin following theannouncement in the Elektronischer Bundesanzeiger (Electronic Gazette),which will take place shortly. Shareholders will be offered the new sharesby 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 tenshares they already hold. The new shares will qualify for dividends from 1January 2011. Non-subscribed shares will be offered for sale in a privateplacement in Germany and certain other countries.The extraordinary general meeting on 7th April 2011 will also vote onauthorising more capital, as the authorisation granted in 2010 has beenfully used to finance the acquisition of Colonia Real Estate AG.By proposing the capital increase, TAG is responding to the continuing highinterest in its shares. The short-term boost to the company's equitycapital base is called for in view of specific acquisition plans, in orderto quickly seize market opportunities for further growth and expansion ofthe portfolio. TAG is currently specifically discussing the acquisition oftwo residential real-estate portfolios, which mainly consist of propertiesin Berlin. The two portfolios are an excellent strategic match for thecompany because the properties are not only focused in Berlin, but are alsolocated in other places where TAG has holdings. As a result, they can beintegrated into the existing portfolio quickly and without a great deal ofexpense. The total investment volume for the two portfolios isapproximately EUR 130 million. These two acquisitions are expected toconclude within the second quarter of 2011. It therefore makes sense topromptly decide upon the capital measures necessary to finance the projectsat an extraordinary general meeting and not wait until the annual generalmeeting 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, andindicates that TAG not only expects its shares to develop positively, butalso takes seriously the issue of not diluting shareholder interests as itgrows - quite the opposite, in fact. TAG will continue to carry out capitalmeasures only when specific projects have been secured.'It goes without saying that any decisions to acquire additional portfolioswill 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 Germanproperty market and use its expertise to create added value forshareholders. The successes of recent weeks in the process of acquiringColonia Real Estate AG encourage us to continue to advance the growthprocess by providing new capital. After the deal is before the deal,' saidRolf Elgeti, CEO of TAG.TAG is also in further negotiations regarding extensive projects which areto come to the fore in the second half of this year.TAG's Annual General Meeting scheduled for 22 June 2011 has been postponedto 26 August 2011.Press enquiries:Dominique Mann / Britta LackenbauerInvestor & Public Relations TAG Immobilien AGSteckelhörn 520457 HamburgEnd of Corporate News---------------------------------------------------------------------18.02.2011 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                                                           Deutschland                                                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  ---------------------------------------------------------------------  112806 18.02.2011