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TAG Immobilien AG: TAG Immobilien AG seizes additional selling opportunities on the Berlin market - On the operations side, significant success in reducing vacancy towards year-end

DGAP-News: TAG Immobilien AG / Key word(s): Real Estate
TAG Immobilien AG: TAG Immobilien AG seizes additional selling
opportunities on the Berlin market - On the operations side,
significant success in reducing vacancy towards year-end

15.12.2014 / 15:23

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PRESS RELEASE

TAG Immobilien AG seizes additional selling opportunities on the Berlin
market - On the operations side, significant success in reducing vacancy
towards year-end

Hamburg (15 December 2014) - As the end of the year approaches, TAG
Immobilien AG ('TAG') has again seized market opportunities by realising
sales of residential properties in Berlin totalling EUR 76 million. A total
of 920 residential units were sold to local housing associations for a book
profit of about EUR 6 million. The transfer of risks and rewards of
ownership has been agreed for 31 December 2014.

In the first week of December, a portfolio of 218 residential units in the
Staaken district of Berlin with a total area of 16,300 m² was already sold
for EUR 21.5 million. The package price is roughly equivalent to 18 times
the current annual net cold rent. The property had been managed by TAG's
property platform for several years and has a vacancy rate of 1.8%.

In mid-December, another 702 residential units in the Neukölln, Lankwitz
and Charlottenburg districts of Berlin, with a total area of approximately
43,000 m², were sold at a price of EUR 54.5 million, or roughly 19 times
the current annual net cold rent. The portfolio has an average vacancy rate
of 5.3%.

TAG expects approximately EUR 30 million in net cash inflow from these two
transactions.

Both disposals took place well above the book value of the properties in
the currently high-priced Berlin area. The released equity is to be
reinvested in further acquisitions with higher initial returns in TAG's
core regions with development potential. Based on the acquisitions and
sales, the FFO forecast for the financial year 2015 is confirmed, as the
portfolios newly acquired in recent weeks compensate the FFO reductions
from sales.

On an operational level the investment strategy coupled with regional
marketing efforts is bearing further fruit. TAG COO Claudia Hoyer comments:
"We were able to significantly reduce vacancy in our residential units
again towards the end of fiscal 2014. While vacancy at year-end 2013 was
8.9%, and 8.6% at the end of Q3 2014, vacancy in December 2014 is down to
8.1%. Further vacancy reduction successes were achieved especially in the
Salzgitter region, where vacancy is now 15.5% (Q3 2014: 16.6%; previous
year: 18.6%)."

Press enquiries:
TAG Immobilien AG
Head of Investor & Public Relations
Dominique Mann
Phone [phone]
Fax [phone]
[e-mail]



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Language: English
Company: TAG Immobilien AG
Steckelhörn 5
20457 Hamburg
Germany
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: http://www.tag-ag.com
ISIN: DE0008303504, XS0954227210, DE000A12T101
WKN: 830350, A1TNFU, A12T10
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
Stuttgart


End of News DGAP News-Service
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