MAGNAT Real Estate AG: MAGNAT sells residential portfolio in Germany and reports figures for first half of 2011/2012

MAGNAT Real Estate AG  / Key word(s): Real Estate/Disposal

29.11.2011 17:13

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MAGNAT sells residential portfolio in Germany and reports figures for first
half of 2011/2012

Frankfurt/Main, 29 November 2011 - MAGNAT Real Estate AG ('MAGNAT', ISIN
DE000A0XFSF0) today signed the contract to implement the disposal of its
residential portfolio in Germany. The deal is expected to be closed in two
stages at the end of December 2011 and the end of February 2012 and is
subject to certain conditions. It has been agreed not to disclose the
purchase price. After deducting the transaction costs and the liabilities
on the properties, MAGNAT will - directly and indirectly - net a
seven-figure amount.

In performing this transaction, MAGNAT is implementing an important part of
its ambitious sales programme and of its strategic focus on the countries
of the Black Sea region in spite of the currently extremely challenging
general economic environment. Presently, the programme is concentrating
mainly on generating liquidity.

Including the results of this transaction, MAGNAT generated a net loss for
the period attributable to its shareholders of EUR -5.4 million in the
first half of 2011/2012 (April to September) after EUR -1.0 million in the
previous year. In particular, the decline as against the previous year
results from the loss on the disposal of the German residential portfolio
of EUR 1.2 million and from a loss as at the end of the reporting period of
EUR 1.9 million on a Ukrainian project on account of an ongoing
restructuring. The latter will largely be reversed again after the
restructuring is complete in the third quarter.

As at 30 September 2011, MAGNAT's cash and cash equivalents amounted to EUR
4.3 million after EUR 5.3 million at the end of the last financial year.
The equity ratio remained at a high level of 59.8 per cent after 63.2 per
cent. As advised, the full half-year report will be published in the course
of 30 November 2011.


Information and Explaination of the Issuer to this News:

MAGNAT's residential portfolio comprised around 1,500 apartments with
approximately 85,000 m² of rentable space at the locations of Eberswalde,
Saalfeld and Rostock. The properties were acquired in 2007 with 30 per cent
vacancies by MAGNAT together with a co-investor, who held a share of 25 per
cent. The properties increased in value in the years that followed as a
result of, in some cases, highly extensive measures with the result that
vacancies were reduced significantly. Most recently, the letting rate stood
at 90 per cent. The portfolio therefore achieved a level at which it could
be disposed of in line with our 'develop & sell' strategy. The planned
disposal of the properties had been announced in the 2010/2011 annual
report and has now been successfully implemented.

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