TAG Immobilien AG: TAG Immobilien AG today exceeded the 50% threshold of share capital and voting rights in Colonia Real Estate AG and takes control of the Cologne-based company

--------------------------------------------------------------------- 15.02.2011 Dissemination of a

TAG Immobilien AG: TAG Immobilien AG today exceeded the 50% threshold of share capital and voting rights in Colonia Real Estate AG and takes control of the Cologne-based company

TAG Immobilien AG / Key word(s): Acquisition

15.02.2011 / 19:15

* The CRE Supervisory Board appoints Hans-Ulrich Sutter and Rolf Elgeti to
the Management Board
* A restructuring process will be initiated to take advantage of synergies 

Hamburg (15 February 2011) - Today TAG Immobilien AG (TAG in the following)
exceeded the 50% threshold of share capital in Colonia Real Estate AG (CRE
in the following) and thereby takes over control of the Cologne-based
company. At the same time the Supervisory Board of CRE appointed Rolf
Elgeti and Hans-Ulrich Sutter to the Management Board.

With this step TAG has converted its existing strategic shareholding into
the aimed-for change of control at CRE. The Supervisory Board of CRE has
simultaneously appointed TAG's Management Board members to the CRE
Management Board, thereby creating the conditions required to start the
restructuring process. The aim is to pool expertise and share resources in
order to strengthen the company's market position and competitiveness.

The two companies' lines of business overlap in many areas: they both focus
on the German residential real-estate market and the service sector. Their
properties are located in metropolitan regions in Germany with a focus on
Berlin, Hamburg / North Germany and North Rhine-Westphalia. Merging the two
companies results in an interesting order of magnitude for the German real
estate market, with more than EUR 4.3 billion - more than 26,000 units - in
assets under management.

There is savings potential both in the area of costs incurred for managing
the properties and in the general administration of the companies. The
possible merger of the Resolution and LARUS subsidiaries would pool the
asset and property management activities, allowing for offering customers a
wider range of services from one source. This should make it possible to
quickly achieve further reductions in vacancy. Likewise, TAG can
renegotiate CRE's particularly costly loans, optimising the terms.

Rolf Elgeti, CEO of TAG Immobilien AG: 'By merging with Colonia we hope to
realise potential synergies of around EUR 25 to EUR 30 million. The
decisive issue for us and our shareholders here is the long-term increase
in shareholder value and the realisation of potential for value enhancement
in the long term. We want our company's success to pay off for our
shareholders too - a dividend payment should be pending after the
successful consolidation of Colonia.'

Press enquiries: 
TAG Immobilien AG
Investor & Public Relations
Britta Lackenbauer / Dominique Mann
Phone +49 40 380 32 300
Fax +49 40 380 32 390

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  
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