MAGNAT Real Estate AG: MAGNAT reports another successful sale of part of the Turkish YKB portfolio

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

20.01.2011 / 13:10

- Very high return from the sale of the 'Bersan' property
- Selling price confirms valuations posted on MAGNAT's balance sheet
- Transaction represents another step in exploiting the Turkish portfolio's
potential value

Frankfurt am Main, 19 January 2011 - MAGNAT Real Estate AG ('MAGNAT', ISIN
DE000A0XFSF0) presses forward with the promised exploitation of the YKB
portfolio and is pleased to report the sale of the 'Bersan' property. In
doing so, it confirms the continuing successful development of its Turkish

The sold 'Bersan' property, which covers an area of 7,740 square metres, is
located in a rapidly developing micro-location on the European side of
Istanbul. It was acquired in July 2007 as part of the so-called YKB
portfolio, in which MAGNAT owns a 33.3 per cent share. The regional focus
of the portfolio is on the Greater Istanbul area. Attractive development
returns can be achieved due to Istanbul's rapidly growing population and
prosperity. The selling price of the 'Bersan' property is more than EUR 9
million and thereby confirms the current valuations shown in accordance
with the valuation report on the balance sheet. Compared to the purchase
value of the property, a cash margin (the difference from the original,
non-revalued cost) of nearly EUR 8 million was achieved. Accordingly, the
internal rate of return (IRR) is more than 60 percent p.a.

MAGNAT initially invested equity of about EUR 21 million in the YKB
portfolio and without taking into account the current sale has already seen
cash reflows totalling EUR 17 million. For the most part, the company has
accounted for profits from the portfolio on its income statement on the
basis of valuations made at the respective balance sheet dates. Therefore,
MAGNAT's result for the 2010/2011 fiscal year will not be substantially
affected by the sale. To begin with, proceeds received on the sale will go
to the YKB project company. A decision as to the timing and amount of a
distribution to MAGNAT and the other shareholders is still pending at

Dr Marc-Milo Lube, CEO of MAGNAT, comments: 'We have developed into one of
the key players for large real estate projects in Turkey. Our portfolio
includes other attractive securities, the potential value of which we will
consistently exploit.'

Jürgen Georg Faè, CFO of MAGNAT, emphasises: 'We continue to deliver on our
promise of successful exits from the Turkish portfolio with the current
sale and in doing so once again demonstrate the quality of our measurement

MAGNAT Real Estate AG is the first publicly traded real estate company in
Frankfurt to focus on real estate development in east European, Austrian
and German metropolitan areas.

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 as
well as special business situations in Germany and Austria.


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  
109543 20.01.2011