DGAP-News 621 0 Kommentare KWG Kommunale Wohnen AG: KWG Kommunale Wohnen AG signs largest acquisition in its history and secures rights to 77.3% of shares in Barmer Wohnungsbau AG - Seite 2

sustainable cash dividend from operating activities.

In addition to the above mentioned cash effects KWG AG sees
non-cash-effective potentials for appreciations in value resulting from a
change to IFRS reporting standards on Barmer Wohnungsbau AG level. KWG AG
expects to increase its NNNAV per share by approximately EUR 1.00 and
expects the NNNAV per share on a diluted basis to amount to around EUR
9.00.

Showing financial debt of around EUR 13.3 million KWG AG expects Barmer
Wohnungsbau AG´s Balance Sheet to show an attractive LTV of around 20% only
according to IFRS standards.

With the signining for the majority in Barmer Wohnungsbau AG KWG AG plans
to initiate a period of further growth. KWG AG plans to capitalise on
already existing opportunities in the market and aims to improve its
profitability by further leveraging its already implemented operating
platform.

The total number of apartments within KWG-Group increases by the
transaction to 6,800. The floor space increases to 400,000 square meters.
By the transaction KWG AG increases its presence in the attractive and
dynamic metropolitan region of North-Rhine-Westphalia. In addition it
expects to raise significant synergy potentials from a joint management of
now 2,440 units in the region as compared to formerly 1,049 units within
the same area.

KWG´s Management Board invites you to join a Conference Call for
journalists, analysts and investors to explain further details of the
acquisition and to discuss growth perspectives. The Conference Call will
take place today at 12.00 a.m. CET. To participate in the conference,
please contact Mrs. Bahar Kocatuerk, edicto GmbH, for the dial in details
at +49 (0)69 905 505 53 or bkocatuerk@edicto.com.

About KWG AG

KWG Kommunale Wohnen AG is a long-term oriented owner and operator of
German residential real estate units. The company acquires residential real
estate portfolios at attractive conditions in promising micro-locations of
metropolitan regions and German regional centres and sustainably increases
their value through an active real estate asset management. By
refurbishments to high energy efficiency standards incidental costs for
tenants are being lowered. KWG AG covers the complete value chain from
acquisitions to construction management and its own internal property
management. As a result vacancies are being reduced and income from net
cold rent is being increased. This leads to value enhancements of the
properties, above average Returns on Equity and profitability. KWG´s
portfolio post the transaction amounts to 6,800 units. KWG´s shares are
listed in the Entry Standard of the Frankfurt Stock Exchange.

Contact

KWG Kommunale Wohnen AG
Jan Hutterer, Head of Investor Relations
Alstertor 9
20095 Hamburg
Tel.: +49- 40- 2263088-100
eMail: ir@kwg-ag.de
www.kwg-ag.de

End of Corporate News

06.03.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

DGAP´s Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de

Language:    English
Company:     KWG Kommunale Wohnen AG
             Alstertor 9
             20095 Hamburg
             Germany
Phone:       040 22 63 088 100
Fax:         040 22 63 088 200
E-mail:      ir@kwg-ag.de
Internet:    www.kwg-ag.de
ISIN:        DE0005227342
WKN:         522734
Listed:      Freiverkehr in Berlin, München, Stuttgart; Open Market
             (Entry Standard) in Frankfurt

End of News    DGAP News-Service

159400 06.03.2012

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