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): Acquisition15.02.2011 / 19:15* The CRE Supervisory Board appoints Hans-Ulrich Sutter and Rolf Elgeti tothe 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 (CREin the following) and thereby takes over control of the Cologne-basedcompany. At the same time the Supervisory Board of CRE appointed RolfElgeti and Hans-Ulrich Sutter to the Management Board.With this step TAG has converted its existing strategic shareholding intothe aimed-for change of control at CRE. The Supervisory Board of CRE hassimultaneously appointed TAG's Management Board members to the CREManagement Board, thereby creating the conditions required to start therestructuring process. The aim is to pool expertise and share resources inorder to strengthen the company's market position and competitiveness.The two companies' lines of business overlap in many areas: they both focuson the German residential real-estate market and the service sector. Theirproperties are located in metropolitan regions in Germany with a focus onBerlin, Hamburg / North Germany and North Rhine-Westphalia. Merging the twocompanies results in an interesting order of magnitude for the German realestate market, with more than EUR 4.3 billion - more than 26,000 units - inassets under management.There is savings potential both in the area of costs incurred for managingthe properties and in the general administration of the companies. Thepossible merger of the Resolution and LARUS subsidiaries would pool theasset and property management activities, allowing for offering customers awider range of services from one source. This should make it possible toquickly achieve further reductions in vacancy. Likewise, TAG canrenegotiate CRE's particularly costly loans, optimising the terms.Rolf Elgeti, CEO of TAG Immobilien AG: 'By merging with Colonia we hope torealise potential synergies of around EUR 25 to EUR 30 million. Thedecisive issue for us and our shareholders here is the long-term increasein shareholder value and the realisation of potential for value enhancementin the long term. We want our company's success to pay off for ourshareholders too - a dividend payment should be pending after thesuccessful consolidation of Colonia.'Press enquiries: TAG Immobilien AGInvestor & Public RelationsBritta Lackenbauer / Dominique MannPhone +49 40 380 32 300Fax +49 40 380 32 390pr@tag-ag.comEnd of Corporate News---------------------------------------------------------------------15.02.2011 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 --------------------------------------------------------------------- 112332 15.02.2011