MAGNAT Real Estate AG: Announcement according to Section 37q (2) Sentence 1 of the German Securities Trading Act (WpHG)

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

14.12.2012 / 15:00

---------------------------------------------------------------------

Announcement according to Section 37q (2) Sentence 1 of the German
Securities Trading Act (WpHG)

Frankfurt am Main, December 14, 2012 - The Federal Financial Supervisory
Authority (BaFin) has concluded that the management report for fiscal year
2009/2010 and the consolidated financial statements as of March 31, 2010 of
MAGNAT Real Estate Opportunities GmbH & Co. KGaA (now MAGNAT Real Estate
AG) are inaccurate:

1. In the reporting period, MAGNAT Real Estate Opportunities GmbH & Co.
KGaA refers to a controlled company. The general partner of MAGNAT Real
Estate Opportunities GmbH & Co. KGaA was required to prepare a report
describing the relationship with affiliated companies (Dependency Report),
which must contain the statutory concluding statement. This statutory
concluding statement is missing in the management report of MAGNAT Real
Estate Opportunities GmbH & Co. KGaA.

This is in violation of Section 312 (3), sentence 3 of the Stock
Corporation Act (AktG) in connection with Section 283 (AktG), whereby the
statement of the general partner on the report regarding the relationships
to affiliated companies is to be included in the management report.

2. Information was missing in the notes regarding the business relationship
of MAGNAT Real Estate Opportunities GmbH & Co. KGaA to MAGNAT Management
GmbH in the amount of EURk 292, and to R-QUADRAT Immobilien Beratungs GmbH
in the amount of EURk 1,251.

This is in violation of IAS 24.17 (2003), whereby it is required to
disclose the type of relationship to related parties as well as information
on transactions with related parties in order to gain an understanding of
the potential effects of the relationship upon the financial statements.

3. The carrying amount of 'Investments accounted for using the equity
method' in the consolidated balance sheet is overstated since the value
assumed by MAGNAT Real Estate Opportunities GmbH & Co. KGaA of the interest
in OXELTON Enterprises Limited Limassol/Cyprus of EUR 13.3 million should
have been impaired to a significant extent.

The failure to impair these assets is in violation of lAS 31.38, IAS 28.33,
IAS 36.8, 18ff., 59, whereby an asset must be impaired if its carrying
amount exceeds its recoverable amount.

4. Of the real estate inventory, which is reported under current assets in
the consolidated balance sheet, MAGNAT Real Estate Opportunities GmbH & Co.
KGaA had not disclosed the amount of EUR 24.3 million, which it had
expected to be recovered more than twelve months after the reporting
period.

This is in violation of IAS 1.61, whereby for each asset and liability line
item that combines amounts expected to be recovered or settled within no
more than twelve months after the balance sheet date and more than twelve
months after the balance sheet date, an entity shall disclose the amount
expected to be recovered or settled after more than twelve months.

5. MAGNAT Real Estate Opportunities GmbH & Co. KGaA had revalued the
assets, liabilities, and contingent liabilities in the consolidated balance
sheet of the newly acquired subsidiary R-QUADRAT Immobilien GmbH and
maintained the carrying amounts of its own assets, liabilities, and
contingent liabilities.

This is in violation of IFRS 3.21 in connection with IFRS 3.B7, B9 (2004)
(analogue), whereby in the case of a reverse acquisition, the assets,
liabilities, and contingent liabilities of the legal subsidiary should be
maintained at carrying amounts in the consolidated financial statements of
the legal parent company, and the assets, liabilities, and contingent
liabilities of the legal parent company should be revalued at fair value.

Contact
MAGNAT Real Estate AG
Investor Relations
Lyoner Straße 32
60528 Frankfurt am Main
Telephone: +49 (0) 69-719 189 79 0
Telefax: +49 (0) 69-719 189 79 11
Email: ir@magnat.ag
Website: www.magnat.ag 

Press Relations
edicto GmbH
Axel Mühlhaus / Werner Rüppel
Telephone: +49 (0) 69-905 50 55 2
Email: amuehlhaus@edicto.de


End of Corporate News

---------------------------------------------------------------------

14.12.2012 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------


Language:    English                                             
Company:     MAGNAT Real Estate AG                               
             Lyoner Straße 32                                    
             60528 Frankfurt am Main                             
             Germany                                             
Phone:       +49 (0)69 / 719 189 79 0                            
Fax:         +49 (0)69 / 719 189 79 11                           
E-mail:      info@magnat.ag                                      
Internet:    www.magnat.ag                                       
ISIN:        DE000A0XFSF0                                        
WKN:         A0XFSF                                              
Listed:      Regulierter Markt in Frankfurt (General Standard);  
             Freiverkehr in Berlin, Stuttgart                    
 
 
End of News    DGAP News-Service  
---------------------------------------------------------------------  
197034 14.12.2012