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TAG Immobilien AG acquires a residential property portfolio with approx. 860 units in Saxony, Saxony-Anhalt and Brandenburg

DGAP-News: TAG Immobilien AG / Key word(s): Real Estate
TAG Immobilien AG acquires a residential property portfolio with
approx. 860 units in Saxony, Saxony-Anhalt and Brandenburg

18.05.2015 / 07:30

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PRESS RELEASE

TAG Immobilien AG acquires a residential property portfolio with approx.
860 units in Saxony, Saxony-Anhalt and Brandenburg

Hamburg, 18 May 2015 - Last week, TAG Immobilien AG ('TAG') acquired a
residential property portfolio with 839 residential units and 23 commercial
units for a purchase price of approx. EUR 18.6 m. The properties are at
various locations in the eastern German states of Saxony, Saxony-Anhalt and
Brandenburg. They are concentrated around the university city of Leipzig
and the greater Leipzig area with 400 units, and the Dresden region with
almost 200 units. Other units are concentrated in Magdeburg, Brandenburg
and Prenzlau. The portfolio is scheduled to be gradually transferred
starting the end of Q2 and during the course of Q3 2015.

The rentable area of ​​the portfolio is around 49,900 m², and current rent
is around EUR 2.35 m per year. The acquisition has interesting development
potential, given its 14.8% vacancy and because it was bought out from a
complex ownership structure. Thanks to its good local infrastructure, TAG
will be able to efficiently manage the portfolio and further develop it.

TAG's total portfolio, including sales and purchases in 2015, now stands at
around 75,000 units.

Martin Thiel, Chief Financial Officer of TAG commented on the acquisition
as follows:

"As we did last year, we have further underscored our strategy of capital
recycling with this acquisition. We reinvest the equity freed up from sales
opportunities we've seized into properties with higher initial returns, and
in TAG's core regions. In the present transaction, we purchased the
property portfolio for 7.9 times the annual net rent. Its regional
distribution fits perfectly into our existing management structure, so the
portfolio will sustainably increase TAG's operating cash flow and FFO."

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: Regulated Market in Frankfurt (Prime Standard), Munich;
Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Hanover, Stuttgart


End of News DGAP News-Service
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357919 18.05.2015