DEMIRE Deutsche Mittelstand Real Estate AG

Share Issue/Capital Change • Apr 13, 2007

News Details

Corporate | 13 April 2007 09:04

MAGNAT Real Estate Opportunities GmbH & Co. KGaA successfully completes Capital Increase of EUR 45 Million

MAGNAT Real Estate Opportunities GmbH & Co. KGaA / Capital Increase/Capital Increase

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

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MAGNAT Real Estate Opportunities GmbH & Co. KGaA has successfully completed
its recent capital increase. In addition to the increase of capital by 4.6
million shares, as resolved by the Shareholders in their assembly of
February 13, 2007, Management and Supervisory Board decided to make full
use of the authorized capital comprising of another 16.1 million shares, in
order to meet the strong demand for the new shares.
The 20.7 million new shares were offered for subscription to the existing
shareholders of MAGNAT. Shares not subscribed by existing shareholders were
subscribed by institutional investors offered to them in a private
placement.
After registration of the capital increase, MAGNAT will have a new
registered capital of EUR 52.9 million, consisting of 52.9 million shares.
At an offering price of 2.20 Euro per new share, the gross proceeds from
the share issue totals EUR 45.54 million. The proceeds are earmarked for
new real estate investments. Several investment opportunities are currently
in an advanced stage of due diligence and execution. The geographic focus
of MAGNAT continues to be in Russia, Ukraine and Turkey. German investment
opportunities are under review, in order to selectively supplement the
portfolio.
Total equity of MAGNAT, as a result of fundraising activities in 2006 and
2007, is now at approximately EUR 86 million. At this capitalization, the
company has available financial resources for a total investment volume of
up to approximately EUR 200 million, including project related leverage.
Silvia Quandt Bank – representing biw Bank für Investments und Wertpapiere
AG – acted as Lead Manager and Sole Book Runner. Silvia Quandt & Cie.
Capital Markets AG advised MAGNAT in the transaction.

+++ About MAGNAT:
MAGNAT is a real estate company with a focus on real estate development in
Eastern European countries. Seed investors were the Silvia Quandt family,
the two financial investors Themis Equity Partners and Heliad Equity
Partners, and the management. In the course of two capital increases in
2006 and a further capital increase in spring of 2007, a number of
institutional investors, amongst them Swiss Real Estate, invested in
MAGNAT.
With its opportunistic strategy, MAGNAT capitalizes on inefficiencies in
real estate markets. In contrast to traditional investment strategies,
MAGNAT not only benefits from rental income, but also and primarily from
attractive development yields and the comparable short time of capital
employed in its projects. All projects must meet an above-average yield
requirement.
Management focuses on real estate markets with interesting development
cycles, i.e. undervalued markets ('anti-cyclical investing') and markets
with high economic growth rates ('growth markets'). The regional focus is
currently on Central, Eastern and South-Eastern Europe, supplemented by
opportunistic, special situations in the German home market.

DGAP 13.04.2007