PRESS RELEASE

TAG Immobilien AG acquires a residential property portfolio with approx. 860 units in Saxony, Saxony-Anhalt and Brandenburg

Hamburg, 18 May 2015 - Last week, TAG Immobilien AG ('TAG') acquired a residential property portfolio with 839 residential units and 23 commercial units for a purchase price of approx. EUR 18.6 m. The properties are at various locations in the eastern German states of Saxony, Saxony-Anhalt and Brandenburg. They are concentrated around the university city of Leipzig and the greater Leipzig area with 400 units, and the Dresden region with almost 200 units. Other units are concentrated in Magdeburg, Brandenburg and Prenzlau. The portfolio is scheduled to be gradually transferred starting the end of Q2 and during the course of Q3 2015.

The rentable area of ​​the portfolio is around 49,900 m², and current rent is around EUR 2.35 m per year. The acquisition has interesting development potential, given its 14.8% vacancy and because it was bought out from a complex ownership structure. Thanks to its good local infrastructure, TAG will be able to efficiently manage the portfolio and further develop it.

TAG's total portfolio, including sales and purchases in 2015, now stands at around 75,000 units.

Martin Thiel, Chief Financial Officer of TAG commented on the acquisition as follows:

"As we did last year, we have further underscored our strategy of capital recycling with this acquisition. We reinvest the equity freed up from sales opportunities we've seized into properties with higher initial returns, and in TAG's core regions. In the present transaction, we purchased the property portfolio for 7.9 times the annual net rent. Its regional distribution fits perfectly into our existing management structure, so the portfolio will sustainably increase TAG's operating cash flow and FFO."

Press enquiries:

TAG Immobilien AG
Head of Investor & Public Relations
Dominique Mann
Phone +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 390
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