Fair Value REIT-AG

Regulatory Filings • Dec 18, 2008

News Details

Corporate | 18 December 2008 10:35

Fair Value REIT-AG sells office property ‘Airport Office II’ in Düsseldorf

Fair Value REIT-AG / Disposal

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

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• Profits of € 1 million recognized in income generated by sale
• Spanish group of investors acquires property as of the end of the year

Munich, December 18, 2008 – Fair Value REIT-AG has sold the office property
'Airport Office II' in Düsseldorf. The property, which is located in direct
proximity to Düsseldorf International Airport's terminal building, changes
hands for a purchase price of around € 15.3 million. Fair Value REIT-AG
first acquired the property, which was then under construction, in October
2007. The successful sale means that according to IFRS the company records
profits recognized in income of around € 1 million after selling costs have
been deducted. The property has been bought by a group of Spanish
investors, with ownership, risks and rewards being transferred at the
latest by December 30, 2008.

Frank Schaich, Fair Value REIT-AG's CEO, explains the background to the
transaction: 'The location and the anticipated demand from tenants
convinced us from the very outset. That is why we bore the entire rental
risk for this property ourselves when we acquired it. Back in September
2008, just three months after its completion, contracts were already
concluded for all of the office space and parking lots. As we believe that,
given the current situation on the market, it is important to document this
success by recording profits, we engaged Jones Lang LaSalle to market the
property to international investors after they successfully assisted in
fully letting the property.'

The successful sale of the property underscores Fair Value REIT-AG's
competence in creating value even on a difficult market. 'We were able to
exceed our original forecast for contractual rent by 9% - which is a key
factor behind the attractive purchase price we have now generated. This was
a highly profitable investment for our company, with a total return of
around 20% of the equity invested,' Frank Schaich went on to say. 'The sale
will cause our equity ratio under Section 15 of the German REIT Act to
increase on the balance sheet date. The proceeds will also increase our
latitude to exploit investment opportunities by using the exit tax
privilege.'

Company profile

Munich-based Fair Value REIT-AG focuses on the acquisition, rental,
property management and sale of commercial properties in Germany. Its
investment activities focus primarily on offices, logistics and retail
properties in German regional centers. As a REIT-AG, Fair Value is not
subject to corporation or trade tax and benefits from the exit tax
privilege when purchasing properties. Fair Value's USP is that – in
addition to investing directly in real estate – it also acquires interests
in closed-end real estate funds.

In its 'Participations' segment Fair Value currently owns interests in 13
closed end real estate funds with a highly diversified portfolio of 49
properties. The rental area of this portfolio totals 421,864 m² and had a
market value of around € 553 million as of June 30, 2008 (Fair Value's
interest in this portfolio currently totals around € 223 million).

In its 'Direct Investments' segment, Fair Value acquired a portfolio of 32
commercial properties in the federal state of Schleswig-Holstein with a
rental area of 42,940 m², mostly used as bank branches. These properties
had a total market value of around € 49.0 million as of June 30, 2008. In
the third quarter of 2008, the portfolio was further enlarged by the
completion of the office building 'Airport Office II' in Düsseldorf with
investment costs of
€ 14 million.

As of September 30, 2008, the total portfolio which has a proportionate
market value of € 286.1 million for Fair Value, had an economic occupancy
level of more than 95% of the potential annual rent of around € 23.5
million. Around 47% of potential rent stems from offices, 40% from retail
facilities, 8% is from logistics facilities and 5% from other facilities.

Contact

Investor & Media Relations
cometis AG
Ulrich Wiehle
Tel.: +49(0)611 – 205855-11
Fax: +49(0)611 – 205855-66
e-mail: wiehle@cometis.de

18.12.2008 Financial News transmitted by DGAP

Language: English
Issuer: Fair Value REIT-AG
Leopoldstraße 244
80807 München
Deutschland
Phone: +49 (0)89 9292 815-01
Fax: +49 (0)89 9292 815-15
E-mail: info@fair-value-reit.de
Internet: www.fair-value-reit.de
ISIN: DE000A0MW975
WKN: A0MW97
Indices: RX REIT All Share Index, RX REIT Index
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Stuttgart, München

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