(Hamburg - May 30, 2012) Instead of demolition, the vacant, dilapidated building on Konrad-Struve-Strasse in Elmshorn is now being renovated for energy efficiency and thoroughly modernised. The new owner of the property, TAG Immobilien AG, has reviewed the renovation of the building and now plans to invest over EUR 2 million for the necessary measures. Investitionsbank Schleswig-Holstein will finance most of the investment as partner and lender. Construction can begin as soon as all the necessary permits have been obtained.

TAG Immobilien AG has owned Konrad-Struve-Strasse 41 for over a year. During this period, TAG has carefully reviewed whether a renovation of the property would be feasible, as the creation of living space is a much more desirable goal than the demolition planned by the previous owner. A decision has now been made to extensively renovate the 42 flats with a total floor space of 1,350 m² in the eight-storey building. The facade will be completely renovated and at the same time insulated in accordance with energy efficiency standards, thereby reducing CO2 emissions. The existing site will be completely gutted and redeveloped to create modern one-bedroom apartments/studios of 29 to 35 m². All apartments will obtain heat and electricity from the existing combined heat and power plant.

Simultaneously with the energy efficiency measures, structural alterations will be made throughout the building and inside the apartments to make them suitable for the elderly. In addition to wheelchair-accessible access to the building and staircase, a new lift system will be installed in the building from the basement to the top floor. The individual apartments will be made wheelchair-accessible - including the balconies - and bathroom modernisations to accommodate the elderly are planned. Once the measures are complete, TAG Immobilien AG expects to achieve a net actual rent of EUR 8.50 per m².

'We campaigned for the restoration of the building because as a real-estate company we naturally focus on the creation of housing space and so this also allows us to meet the high demand for one-bedroom flats suitable for the elderly,' said TAG CEO Rolf Elgeti. 'By bringing the Investitionsbank on board, we have gained a partner in campaigning for the region and upgrading the residential environment in Konrad-Struve-Strasse. By taking this step, we not only create new homes, but reduce vacancy costs and increase operating profits in a demographically and environmentally sustainable manner.'

Press enquiries:

TAG Immobilien AG
Investor & Public Relations
Britta Lackenbauer / Dominique Mann
Phone +49 40 380 32 0
Fax +49 40 380 32 390
prtag-agcom