PRESS RELEASE

TAG Immobilien AG achieves significant success in Salzgitter through targeted incidental costs management

- Total monthly rent lowered for nearly the entire residential stock in Salzgitter - 8,800 units with more than 15,000 tenants

- Savings per apartment of up to 340 EUR or 20% of total rent p.a.

Hamburg (27 January 2014) - TAG Immobilien AG ('TAG' in the following) is reducing incidental rental expenses for its tenants in Salzgitter through active, targeted management of its operating costs. Since TAG took over the residential inventory in 2011, it has optimised energy costs, waste disposal and janitorial services. This helps to improve the quality and appeal of the location, and in particular to reduce service charges as well as, indirectly, vacancy in the portfolio.

So TAG not only offers its customers affordable housing with a solid infrastructure, but also controls the sustainability of the measures through purposive negotiations with energy suppliers and disposal companies. In Salzgitter, for instance, eco-friendly 'green electricity' is supplied from combined heat and power (CHP) plants and, depending on individual usage, households can save between EUR 60 and EUR 275 in heating costs per apartment per year. In addition a service provider switch and active management of the on-site disposal/recycling locations (household waste, bulky waste, wastepaper) will reduce disposal costs to less than half in future. At the same time, the janitorial services for the total inventory have been upgraded to 24-hour availability and a high level of service for the tenants. Also, a modern remote-reading function has been installed for electricity/gas/water meter readings, guaranteeing technically precise and accurate usage figures for further cost savings.

TAG COO Claudia Hoyer comments on the benefits to tenants: 'We don't see the services charges of an apartment as an item to be simply passed along to the customer. Instead, we control the individual components in advance through targeted management and constantly check for possible savings that will benefit our tenants. This makes our apartments more competitive, which favours vacancy reduction - which in turn significantly reduces our own vacancy costs at the site.'

Press enquiries:
TAG Immobilien AG
Head of Investor & Public Relations
Dominique Mann
Phone +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 388
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