TAG Immobilien AG: TAG Immobilien AG sells project development site on Tübinger Strasse in Munich
TAG Immobilien AG / Key word(s): Disposal20.10.2011 / 16:32---------------------------------------------------------------------* Total purchase price for the property formerly used by Siemens is EUR 31million* Based on IFRS book values, profits from the sale are EUR 7 million Hamburg, 20 October 2011 - TAG Immobilien AG (TAG in the following) hassold a project development site of around 15,000 m² located on TübingerStrasse in Munich via its subsidiary, TAGGewerbeimmobilien-Aktiengesellschaft. A property developer from Munich hasacquired the lion's share of the property formerly occupied by Siemens,while a smaller parcel was sold to another buyer today parallel to thetransaction. The total purchase price is about EUR 31 million and based onthe amounts reported in the IFRS balance sheet will result in a substantialgain, which will add more than EUR 7 million to the company's net incomefor 2011.The sale is the result of a two-year process, during which TAG managed tobring about a zoning situation for this property that made a sale at thisprice possible in the first place.TAG will use the proceeds from the sale to pay off loans in its commercialportfolio and create financial leeway for future acquisitions. As the loansin this part of the portfolio are subject to interest expenses above thecompany average, and the property has not generated any rents since thebeginning of the year, this sale improves the operating cash flow and FFOs(Funds from Operations) by over EUR 2 million per year.TAG Immobilien AG CEO Rolf Elgeti says: 'The sale of this property atnearly 50 percent above its book value shows that our strategy of carefulasset management in the commercial portfolio makes excellent sense. It alsoadditionally improves the group's cash flow position and further reducesour Loan to Value. We will continue to selectively sell properties where itappears opportune to do so in the spirit of value-optimising management.'About TAG TAG Immobilien AG is a listed real estate group which can look back on ahistory spanning 125 years. The SDAX listed company actually has a marketcapitalisation of approximately EUR 400 million.Its main business activities entail residential and commercial real estatein German metropolitan regions as well as the provision of real estateservices. Thanks to active asset management and individual portfoliodevelopment activities, TAG harnesses the potential available for boostingrental income. As a matter of principle, the Company's activitiesconcentrate on generating stable cash flows and achieving attractivereturns.End of Corporate News---------------------------------------------------------------------20.10.2011 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 32 300 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 --------------------------------------------------------------------- 142941 20.10.2011