MAGNAT Real Estate AG: MAGNAT focuses on three to four core markets in Eastern Europe

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

23.02.2011 / 16:32

MAGNAT focuses on three to four core markets in Eastern Europe

  - Focus: the rapidly growing Black Sea region, with Ukraine, Turkey and

  - Romania as candidate for development into fourth core market

  - Controlled, value-preserving withdrawal from the other markets by the
    end of 2013

Frankfurt am Main, 23 February 2011 - MAGNAT Real Estate AG ('MAGNAT', ISIN
DE000A0XFSF0) to focus on three to four rapidly growing core markets in
Eastern Europe, thus reducing significantly the high number of markets -
currently nine - served. The future will see MAGNAT's focus being put on
the Black Sea region, with the countries Ukraine, Turkey and Georgia. The
commitments in Romania are being monitored and this country may become the
fourth core market. MAGNAT will gradually pull out of the other countries:
Germany, Poland, Bulgaria and Russia. The stocks and projects in these
countries are to be divested by the end of 2013. The first sales should
take place in as early as 2011.

In its core markets, in which MAGNAT is already well established with
first-hand experience, the company will combine own development projects
with efforts to win third party asset management mandates. Eastern Europe
is currently emerging from the deep economic recession in the wake of the
financial crisis of 2008 to 2010. In addition to numerous distressed
situations, the long-term backlog and upward trend in Eastern Europe
continues to be highly promising. To take advantage of the current
opportunities, MAGNAT is aiming for a significant medium-term growth of its
asset base.

The new core markets in detail: Ukraine is one of the largest markets in
Eastern Europe. Not least because of a new commodity boom, strong recovery
effects are expected there after the economic slump with predicted growth
rates in gross domestic product of 5.0 per cent in 2011 and 2012. With
predicted gross domestic product growth of 7.4 per cent in 2010 - and
anticipated rates of 4.1 per cent in 2011 and 5.1 per cent in 2012 - Turkey
is currently the fastest growing economy in Europe and benefits from the
geographic position at the crossroads between Asia and Europe. With strong
backing from the U.S. and EU, Georgia is recovering fast from its post-war
crisis. Investment interest displayed by the Middle East countries and
Turkey is particularly great. After a predicted 5.5 per cent increase in
2010, gross domestic product in Georgia is expected to rise by around 4.5
per cent in this year and the next.

The Asset Management division of MAGNAT, which is operated as a profit
centre and provides stable cash flows, remains a central part of the
company. MAGNAT will continue to implement profitable co-proprietor's
building schemes in Vienna and carry out asset management mandates in
Germany. MAGNAT also plans to step up its activities with respect to third
party mandates in the new core markets in Eastern Europe. In addition, the
company's asset management serves as a growth platform for MAGNAT's own
projects in the new core markets.

Dr Marc-Milo Lube, CEO of MAGNAT, comments: 'We want to be able to better
exploit our potential in those countries in which we operate with
particular experience and expertise. Therefore, we are concentrating on
three to four selected, above-average, rapidly growing markets in Eastern
Europe, which we are very familiar with. We will carry out exciting new
growth projects in these core markets as well as asset management mandates
for third parties.'

An up-to-date company presentation about MAGNAT's focus on selected core
markets is available on the website

MAGNAT Real Estate AG is the first publicly traded real estate company in
Frankfurt to focus on real estate development in Eastern Europe.

MAGNAT is an integrated real estate group and covers the entire value chain
- from acquisition across development through to the sale of projects and
land. In addition, the Group provides real estate asset management services
for third parties.

MAGNAT investors participate in development returns in Eastern Europe.

MAGNAT Real Estate AG
Investor Relations
Dr Joachim Fleing/Charlotte Frenzel
Lyoner Strasse 32
D-60528 Frankfurt am Main
Telephone: +49 (0) 69-719 189 79 36
Fax: +49 (0) 69-719 189 79 11

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

End of Corporate News


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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 News    DGAP News-Service  
113232 23.02.2011