TAG Immobilien AG: TAG Immobilien AG resolves capital increase against cash of up to 5 million new shares to finance further acquisitions in Berlin and Erfurt

TAG Immobilien AG / Key word(s): Capital Increase17.11.2011 / 08:00---------------------------------------------------------------------* Private placement of equity offering of up to 5,000,000 new shares * Further acquisitions of approx. 3,300 units for between EUR 130 and 140million are being negotiated(Hamburg, 17 November 2011) TAG Immobilien AG (TAG in the following)continues on its expansionist course. In an ad hoc release this morning,the company announced it would implement a capital increase of up to5,000,000 new shares against cash contributions, to finance furtheracquisitions.The Management Board of TAG Immobilien AG today decided, with the approvalof the Supervisory Board, to issue up to 5,000,000 new shares against cashcontributions, under exclusion of the shareholders' statutory subscriptionrights. The shares will be offered to qualified investors in the EuropeanEconomic Area and Switzerland by way of a private placement. The offerprice is EUR 6.10 per share. The final issue volume will be published todayfollowing a book-building process. The company's registered share capitalof currently EUR 69.9 million will increase to as much as EUR 74.9 million.The new shares will be admitted for trading on the regulated market theFrankfurt Stock Exchange (Prime Standard) as soon as the capital increasehas been entered in the commercial registry, which the company expectswill happen in the next few days, and will carry dividend rights for the2011 fiscal year. Close Brothers Seydler Bank AG, Frankfurt am Main, andKempen & Co. N.V., Amsterdam, will jointly manage the capital increase.The capital increase against cash will serve to finance furtheracquisitions. TAG is currently in negotiations regarding the acquisition ofvarious residential real estate portfolios. The contracts are to befinalised and signed in the next few months. The properties beingconsidered are located in Berlin and Thuringia and could becost-effectively managed by the TAG group's existing branches. The rentalspace in the Berlin region amounts to nearly 170,000 m² and around 2,900units. Negotiations in Erfurt concern approximately 360 units with roughly20,000 m² of residential space plus commercial spaces. The acquisitionsonce again reflect the TAG group's strategy of investing in locations orGerman metropolitan regions where it already has holdings. Given theproperties' development potential and projected gross yield of between 9and 10 percent, the acquisitions could contribute considerably to improvingprofitability. Alternatively, if the funds raised by the equity offeringcannot be used for acquisitions, they are to be used to pay down debt.'The capital market environment is not exactly easy at this time, and theissuance of shares so clearly below the NAV only makes sense in exceptionalcases. However, these three portfolios are so lucrative that ultimately theNAV won't be diluted and we will still be able to comfortably meet our NAVtarget of EUR 8.75 per share by the end of the year. At the same time wecan achieve considerable contributions to earnings for the next years fromthese portfolios,' explains TAG Immobilien AG CEO Rolf Elgeti.End of Corporate News---------------------------------------------------------------------17.11.2011 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 0                                               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  ---------------------------------------------------------------------  146710 17.11.2011