TAG Immobilien AG acquires residential real-estate portfolio with approx. 3,100 units in northern Germany and Saxony

TAG Immobilien AG / Key word(s): Real Estate26.07.2011 / 18:42---------------------------------------------------------------------* Purchase price around EUR 150 million* Acquisition involves a capital increase against contributions in kind ofabout 5.5 million new shares at 8 EUR per share(Hamburg, 26 July 2011) TAG Immobilien AG (TAG in the following) todaypublished an ad hoc announcement of its purchase of a real estate portfolioof 3,083 residential units and 71 commercial units from a fund.  The regional focus of the portfolio lies in northern Germany and Saxony, sothat the properties can be managed very cost-effectively by the TAGgroup's existing offices in Hamburg and Leipzig. The total rental space is208,393 m², with net rent at EUR 12.7 million per annum, and the purchaseprice is around EUR 150 million. About three-quarters of the real estate(by square metres) is distributed to various north German cities, with afocus on the greater Hamburg region, Wolfsburg and Cuxhaven, and roughly aquarter in Saxony, in and around Dresden and Leipzig. The vacancy rate is6.3%. Most of the inventory is post-war, or new construction from the late1990s, in excellent condition, a fact that is reflected in the averageactual rent of approx. 5.42 EUR/m2 per month.As part of the transaction, the sellers will give to TAG, as a contributionin kind, shares in five property companies that own the portfolio.Therefore, the Management Board has today decided to utilise the capitalauthorised by the General Meeting on 7 April 2011, and pending the approvalof the Supervisory Board, to issue 5,476,924 new shares againstcontribution of the shares in the property companies. The issue price ofthe new shares is 8 EUR per share. In addition to the issuance of shares, apayment in the amount of up to approx. EUR 9 million was agreed. Thestatutory subscription right of shareholders is excluded. The capitalincrease increases the share capital from currently EUR 64.4 million to EUR69.9 million. The purchase of shares is contingent upon the entry of thecapital increase in the commercial registry, which is scheduled for autumn2011. Once the transaction is concluded, the sellers of the portfolio willown 7.8 % of the voting rights in TAG.Today's acquisition further expands the TAG group's portfolio, increasingits residential real-estate volume by some 10 percent to 2,180,006 m² or30,285 units. As part of its growth strategy focusing on select regionallocations that promise development potential and attractive yields, TAG iscontinually and sustainably strengthening its position in the German realestate market.'Like our earlier acquisitions, this will have a positive impact on ourcash flow, our profitability and our NAV per share. The fact that thesellers accepted our shares as currency at a rate of 8 EUR, underscoresinvestors' confidence in our strategy of value creation,' says Rolf Elgeti,Chairman of the TAG Immobilien AG Management Board.TAG is able to handle the management of these properties with its existinginfrastructure. To facilitate the transition, however, TAG won't take overthe property management until towards the end of 2012.End of Corporate News---------------------------------------------------------------------26.07.2011 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                                                           Germany                                                    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  ---------------------------------------------------------------------  133305 26.07.2011