DEMIRE Deutsche Mittelstand Real Estate AG

Regulatory Filings • Jun 14, 2007

News Details

Corporate | 14 June 2007 08:30

MAGNAT Real Estate Opportunities GmbH & Co. KGaA with next promising investment in Romania; Residential project ‘Vacaresti’ in Bucharest has investment volume of 40 million Euros

Heliad Equity Partners GmbH & Co. KGaA / Miscellaneous/Miscellaneous

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MAGNAT Real Estate Opportunities GmbH & Co. KGaA has invested in another

promising project in Romania. MAGNAT, through a local project company 75%

owned by MAGNAT, purchased a site for residential development in the

Vacaresti district of Bucharest. On a 6.900 sqm plot of land, proximately

400 apartments with 37.000 sqm of sellable floor space will be built.

Total investment volume will be approximately 40 million Euros.

The project, only a few kilometres south-east of the centre of Bucharest,

is favourably situated nearby a subway station, as well as a shopping mall

that is under construction and that will be finished at the time of

completion of the project. Due to the imbalanced supply-demand ratio

Bucharest, sales of apartments are possible already off-plan or in early

stages of development. Due to this market situation, high two-digit returns

on equity are possible, also supported by the possibility to make efficient

use of capital. Also, further price rises are expected.

MAGNAT-CEO Jan O. Ruester comments: ‘The residential market in Bucharest is

characterised by a high level of demand and vacancy rates of almost nil.

For this reason, and because we were able to acquire the site for an

attractive price, we believe to have a very attractive project.’ For the

years to come, MAGNAT expects a continued outperformance of the residential

development sector in Bucharest. Further Investments are therefore

analysed.

+++ About MAGNAT:

MAGNAT is a German real estate company focusing on real estate development

in Eastern Europe, supplemented by special situations in its home market

Germany. Management focuses on undervalued real estate markets and on

markets with high growth rates. The strategy of MAGNAT is opportunistic and

capitalizes on inefficiencies in real estate markets. In contrast to

traditional investment strategies, MAGNAT not only benefits from rental

income, but primarily from attractive development yields and a comparably

short time of capital employed in its projects. All projects must meet an

above-average yield requirement. Seed investors of MAGNAT are the Silvia

Quandt family, the two financial investors Themis Equity Partners and

Heliad Equity Partners, and the management.

MAGNAT Real Estate Opportunities GmbH & Co. KGaA

Grüneburgweg 18

60322 Frankfurt am Main

Investor Relations

Jan O. Rüster, CEO

Tel.: +49 (0) 69 719 189 79 0

E-Mail: jan.ruester@magnat-reop.com

Press Relations

edicto GmbH

Axel Mühlhaus / Werner Rüppel

Tel.: +49 (0) 69 905 50 55 2

E-Mail: amuehlhaus@edicto.de

DGAP 14.06.2007

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Language: English

Issuer: Heliad Equity Partners GmbH & Co. KGaA

          Grüneburgweg 18

          60322 Frankfurt am Main Deutschland

Phone: +49 (0)69 719 15 965 0

Fax: +49(0)69 719 15 965 11

E-mail: alexander.mitsch@heliad.de

www: www.heliad.de

ISIN: DE0006047293

WKN: 604729

Indices:

Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr

          in Berlin-Bremen, München, Stuttgart

End of News DGAP News-Service

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