MAGNAT Real Estate AG concludes Schwarzenberg project

MAGNAT Real Estate AG  / Key word(s): Legal Matter/Scheme of Arrangement

14.12.2011 14:06

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MAGNAT concludes Schwarzenberg project

Frankfurt am Main, December 14, 2011 - MAGNAT Real Estate AG ('MAGNAT',
ISIN DE000A0XFSF0) announces the conclusion of the legal dispute concerning
the Schwarzenberg project. MAGNAT has received a settlement payment of EUR
2.65 million as of today. The settlement that has been achieved will result
in a positive earnings contribution of EUR 2.65 million in the third
quarter (as of December 31, 2011) of the current 2011/2012 fiscal year.

Background: MAGNAT originally held an 18.8 percent interest in the
operating company of the Hotel Palais Schwarzenberg project. MAGNAT
exercised a related option to exit from this interest in the 2010/2011
fiscal year. An amount that was due to MAGNAT from its former partner JJW
Ltd. as part of this exit was not paid by JJW Ltd., however. For this
reason - and in light of the discussion concerning the solvency of JJW Ltd.
that had emerged within the public domain - the related 'at equity'
valuation was fully written down in the 2010/2011 fiscal year financial
statements by way of commercial prudence. At the same time, MAGNAT had
launched legal steps against JJW Ltd. in order to collect its receivable.
With the settlement payment that has now been rendered, the legal dispute
between JJW Ltd. in the MAGNAT Group has been settled.

MAGNAT Real Estate AG
Investor Relations
Lyoner Straße 32
D-60528 Frankfurt am Main
Phone: +49 (0) 69-719 189 79 0
Fax: +49 (0) 69-719 189 79 11

Press Relations
edicto GmbH
Axel Mühlhaus / Werner Rüppel
Phone:  +49 (0) 69-905 50 55 2

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Language:     English
Company:      MAGNAT Real Estate AG
              Lyoner Straße 32
              60528 Frankfurt am Main
Phone:        +49 (0)69  / 719 189 79 0
Fax:          +49 (0)69  / 719 189 79 11
ISIN:         DE000A0XFSF0
WKN:          A0XFSF
Listed:       Regulierter Markt in Frankfurt (General Standard);
              Freiverkehr in Berlin, Stuttgart
End of Announcement                             DGAP News-Service