DEMIRE Deutsche Mittelstand Real Estate AG

Share Issue/Capital Change • Mar 23, 2007

News Details

Corporate | 23 March 2007 20:00

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

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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The Management Board of MAGNAT Real Estate Opportunities GmbH & Co. KGaA,
with the approval of the Supervisory Board, has decided to execute the
capital increase resolved by the Shareholders’ Meeting of 13th February
2007, by offering up to 4.6 million new shares at a subscription ratio of
7:1 to its shareholders at a price of 2.20 EUR per share.
Simultaneously, the Management Board, with the approval of the Supervisory
Board, has also decided to make use of the authorized capital for a capital
increase of up to 16.1 million new shares. These shares will be offered to
the shareholders at a subscription ratio of 2:1 and also at a price of 2.20
EUR per share.
The subscription period for existing shareholders to subscribe new shares
from the capital increase (at a subscription ratio of 7:1) and from the
capital increase on the basis of authorized capital (at a subscription
ratio of 2:1) is expected to start on Wednesday, 28th March 2007, and to
end on Tuesday, 10th April 2007 (both dates inclusive). Neither
subscription rights for fractional amounts are offered, nor will
subscription rights be traded. No compensation for unused subscription will
be offered. New shares will be fully entitled to dividend for the financial
year 2006/2007.
Shares not subscribed by existing shareholders on basis of their
subscription rights will be offered to institutional investors through a
private placement.
MAGNAT is advised in the transaction by Silvia Quandt Bank – representing
biw Bank für Investments und Wertpapiere AG and Silvia Quandt & Cie.
Capital Markets AG.

+++ About MAGNAT
MAGNAT is a real estate company with a focus on real estate development in
Eastern European countries. The founding partners are the Silvia Quandt
family and the two financial investors Themis Equity Partners and Heliad
Equity Partners as well as the management itself. In the course of two
capital increases in July and September 2006, participations were taken up
by several institutional investors, including Swiss Real Estate.
MAGNAT's goal is to exploit inefficiencies which are inherent in real
estate markets to the advantage of its shareholders. In contrast to
classical real estate investors, MAGNAT not only benefits from rental
income, but also and primarily from attractive developers' returns as well
as a high turnover rate of the investments (investment horizon of between 1
and 3 years). All projects must meet an above-average yield requirement.
The management focuses on markets with interesting development cycles, i.e.
undervalued markets ('anti-cyclical investing') and markets with high
economic growth rates ('growth markets'). The regional investment focus is
currently Central, Eastern and South-Eastern Europe, as well as special
situations in the home market of Germany.

DGAP 23.03.2007