TAG Immobilien AG: TAG Immobilien Group has taken over the property management of approximately 8,800 flats in Salzgitter from TREUREAL with effect from 1 July and will manage the local portfolio itself henceforth
TAG Immobilien AG / Key word(s): Strategic Company Decision04.07.2011 / 12:00Hamburg / Mannheim, 4 July 2011 - TAG Immobilien AG (TAG) has already takenover the management of the Colonia Real Estate AG (Colonia) residentialportfolio of approximately 8,800 units in Salzgitter on 1 July. Themanagement was taken over earlier than planned by mutual agreement withTREUREAL Property Management GmbH, who has managed the portfolio since July2009. TAG expects to save millions of euros from this strategicallymotivated 'insourcing' of property management.Colonia's largest single portfolio of 8,800 units in Salzgitter, with avacancy rate of almost 24%, is the biggest operational challenge that TAGhas had to face since taking over Colonia in February 2011. 'TREUREAL hasstabilised the portfolio in Salzgitter over the past two years underdifficult conditions,' said TAG CEO Rolf Elgeti. 'By bringing themanagement of the portfolio in-house, we can increase operatingprofitability, lower vacancy costs and raise our company's short-termappreciation potential. TAG feels it is well placed for this task with itsexpertise in property management and vacancy reduction.'Wolfgang Wingendorf, managing partner of TREUREAL, says: 'We have beenmanaging a difficult portfolio in Salzgitter since July 2009. A challengingtask for any proficient property manager, and one we would have been happyto have continued tackling. However, we of course fully understand thestrategic decision of the new owner TAG to manage the portfolio itself.'For TAG, taking over of the management of the properties from TREUREALpools expertise, leads to shorter decision-making processes and realisessynergies. The 'insourcing' of the Salzgitter portfolio is another step inthe vigorous advancement of Colonia's integration into the TAG ImmobilienGroup.Press enquiries:TAG Immobilien AGInvestor & Public RelationsBritta Lackenbauer / Dominique MannTel. +49 40 380 32 300Fax +49 40 380 32 390pr@tag-ag.comTREUREAL GmbHCorporate CommunicationsHeinz Colligs+49 621 3006-0End of Corporate News---------------------------------------------------------------------04.07.2011 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 --------------------------------------------------------------------- 130737 04.07.2011