VIB Vermoegen AG

Business and Financial Review • Jan 5, 2006

News Details

Corporate | 5 January 2006 10:05

VIB Vermögen AG invests 26m euros in high-yield real property

Corporate-news transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— Lucrative acquisitions in Memmingen, in ” Boom Town ” Ingolstadt and in Schrobenhausen Neuburg/Donau, 5th January 2006 – Following its successful initial public offer at the end of November 2005 and the accompanying inflow of funds of almost EUR 30m, the VIB Vermögen AG has expanded its real estate portfolio with promising investments. The main investment focus of the new acquisions that were made at the turn of the year is on the retail and service centre at the commercial park Memmingen-Nord with acquisition costs of around EUR 21m. The project will yield over 9 % annually. Financing is funded by 70% external capital. By taking this step, the VIB has availed itself of the current favourable interest rate situation. The commercial park Memmingen-Nord covers an area of approximately 300 hectares and is the second largest in the administrative district of Schwaben in Bavaria. Located in the immediate vicinity of the motorway intersection A7/A96, it also has excellent transport access.The catchment area of the town of Memmingen with about 250,000 inhabitants promises high numbers of visitors and a corresponding sales expectancy. An integral part of the acquired property is the Fraunhofer-Palais, where retailers and service companies – including a branch of the Citibank and some doctors’ surgeries – have located. The complex also accommodates a Media- Markt together with a catering and entertainment area and also a DIY store from the Praktiker Group. The tenants renting floorspace include companies such as Takko and RENO, likewise of good financial standing. A total rental area of 22,300 sqm will generate annual net rentals (utilities not included) of approximately EUR 2m. The VIB Vermögen AG has invested a further EUR 4.7m through the takeover of TM AG & Co. KG, in which the VIB already had a 22% interest. This includes a Burger King Restaurant and the Hotel Mercure – and in Ingolstadt at that: well-known as Germany’s most recent “Boom Town”. In addition, there is also the AWG-Mode-Center in Schrobenhausen. These properties have thus been financed through 70% loans and 30% equity capital. The VIB Vermögen AG now has over 20 commercial properties in its portfolio and a rentable area of more than 166,000 sqm. Taking the recent acquisitions into account, CEO Ludwig Schlosser anticipates a rental income of at least EUR 10m for the year 2006. As such, the rental income for 2006 already exceeds the planned estimate by more than 10%. Contact: Investor Relations: VIB Vermögen AG Rainer Hettmer Luitpoldstr. 70 86633 Neuburg/Donau Phone: +49 8431/504 955 Fax: +49 8431/504 854 E-mail: rainer.hettmer@vib-ag.de Profile of the VIB Vermögen AG : The VIB Vermögen AG is a medium-sized real estate holding company that is mainly active in the South Bavarian region. Founded in 1993 as a business partnership, the VIB was converted into a public company in the year 2000. Since then the company has developed its core competency in the fields of acquisition and administration of its own real estate and of investing in companies with real estate assets. At present, the Neuburg Industrial Park, an industrial plant of Faurecia, suppliers to the automobile industry and the Metawell company’s Neuburg plant comprise just part of the real estate portfolio. Amongst others, the DonauCityCenter shopping centre in Ingolstadt, a commercial building in Regensburg, an industrial park in Günzburg and a Burger King Restaurant near Pfaffenhofen on the A9 all belong to the company. The shares of the VIB Vermögen AG have been listed in the market segment M:access of the Munich Stock Exchange and also at the Frankfurt Securities Exchange since 28th November 2005 (WKN 245 751). End of announcement (c)DGAP 05.01.2006 —————————————————————————— WKN: 245751; ISIN: DE0002457512; Index: Listed: