Announcement

TAG Immobilien AG: TAG Immobilien AG resolves capital increase against cash of up to 5 million new shares to finance further acquisitions in Berlin and Erfurt

Private placement of equity offering of up to 5,000,000 new shares * Further acquisitions of approx.

TAG Immobilien AG: TAG Immobilien AG resolves capital increase against cash of up to 5 million new shares to finance further acquisitions in Berlin and Erfurt

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

17.11.2011 / 08:00

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* Private placement of equity offering of up to 5,000,000 new shares 
* Further acquisitions of approx. 3,300 units for between EUR 130 and 140
million are being negotiated
(Hamburg, 17 November 2011) TAG Immobilien AG (TAG in the following)
continues on its expansionist course. In an ad hoc release this morning,
the company announced it would implement a capital increase of up to
5,000,000 new shares against cash contributions, to finance further
acquisitions.
The Management Board of TAG Immobilien AG today decided, with the approval
of the Supervisory Board, to issue up to 5,000,000 new shares against cash
contributions, under exclusion of the shareholders' statutory subscription
rights. The shares will be offered to qualified investors in the European
Economic Area and Switzerland by way of a private placement. The offer
price is EUR 6.10 per share. The final issue volume will be published today
following a book-building process. The company's registered share capital
of currently EUR 69.9 million will increase to as much as EUR 74.9 million.
The new shares will be admitted for trading on the regulated market the
Frankfurt Stock Exchange (Prime Standard) as soon as the capital increase
has been entered in the commercial registry, which the company expects
will happen in the next few days, and will carry dividend rights for the
2011 fiscal year. Close Brothers Seydler Bank AG, Frankfurt am Main, and
Kempen & Co. N.V., Amsterdam, will jointly manage the capital increase.

The capital increase against cash will serve to finance further
acquisitions. TAG is currently in negotiations regarding the acquisition of
various residential real estate portfolios. The contracts are to be
finalised and signed in the next few months. The properties being
considered are located in Berlin and Thuringia and could be
cost-effectively managed by the TAG group's existing branches. The rental
space in the Berlin region amounts to nearly 170,000 m² and around 2,900
units. Negotiations in Erfurt concern approximately 360 units with roughly
20,000 m² of residential space plus commercial spaces. The acquisitions
once again reflect the TAG group's strategy of investing in locations or
German metropolitan regions where it already has holdings. Given the
properties' development potential and projected gross yield of between 9
and 10 percent, the acquisitions could contribute considerably to improving
profitability. Alternatively, if the funds raised by the equity offering
cannot be used for acquisitions, they are to be used to pay down debt.

'The capital market environment is not exactly easy at this time, and the
issuance of shares so clearly below the NAV only makes sense in exceptional
cases. However, these three portfolios are so lucrative that ultimately the
NAV won't be diluted and we will still be able to comfortably meet our NAV
target of EUR 8.75 per share by the end of the year. At the same time we
can achieve considerable contributions to earnings for the next years from
these portfolios,' explains TAG Immobilien AG CEO Rolf Elgeti.


End of Corporate News

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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  
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