MAGNAT adopts internalisation of asset management and conversion to a joint stock corporation

MAGNAT Real Estate Opportunities GmbH & Co. KGaA Publication of an ad-hoc statement in accordance with

MAGNAT Real Estate Opportunities GmbH & Co. KGaA / Capital Increase/Acquisition

08.09.2009 

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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MAGNAT Real Estate Opportunities GmbH & Co. KGaA

Publication of an ad-hoc statement in accordance with Section 15 of the
German Securities Trading Act (WpHG). Transmitted by DGAP - an EquityStory
AG company. The issuer is responsible for the content of this statement.

MAGNAT adopts internalisation of asset management and conversion to a joint
stock corporation

- Integration is to take place by way of a capital increase against
contributions in kind

- Conversion of MAGNAT to a joint stock corporation is planned

- All proposals are to be approved during the Annual General Meeting 

Frankfurt am Main., 8 September 2009 - The General Partner of MAGNAT Real
Estate Opportunities GmbH & Co. KGaA ('MAGNAT' or 'Company')
(ISIN:DE000A0XFSF0) has today, with the approval of the Supervisory Board,
taken a decision to internalise asset management, which has hitherto been
dealt with externally by R-QUADRAT Immobilien GmbH (successor to R-QUADRAT
Immobilien Beratungs GmbH). To that end, a decision was taken on 8
September 2009 to utilise the authorised capital of the Company, currently
amounting to EUR 26,450,000, and increase the share capital from EUR
5,290,000 by EUR 8,604,651 to EUR 13,894,651 by issuing 8,604,651 new
bearer shares with dividend rights as of 1 April 2009 against contributions
in kind. The subscription rights of shareholders have been excluded. The
issue price of the new shares is EUR 3.44 per share, which is the weighted
average shareprice of the last three month according to German takeover law
WpÜG.

The contribution in kind is made up of all shares of Metis Holding AG
(renamed in R-QUADRAT Holding AG) Vienna, Austria, whose sole asset is a
77.49% stake in R-QUADRAT Immobilien GmbH, and Altira ImmoFinanz GmbH,
whose sole asset is a 22.51% stake in R-QUADRAT Immobilien GmbH.

The competent district court has appointed the well-known Warth & Klein
Wirtschaftsprüfungsgesellschaft, Dusseldorf, as auditor of the capital
increase.

R-QUADRAT Immobilien GmbH, Vienna, Austria, is an asset management company
for real estate projects and real estate-based capital market products.
R-QUADRAT Immobilien GmbH now operates mainly in Germany, Austria and
Eastern Europe (CEE/CIS). In this respect, the priority countries are the
Ukraine, Turkey, Romania and Poland. R-QUADRAT Immobilien GmbH's field of
business activity comprises asset management mandates in the real estate
sector. In particular, these mandates encompass the purchase, development
or ongoing management as well as the leasing and sale of real estate on
behalf of investors. R-QUADRAT's assets under management total some EUR 500
million. Its operations are clearly profitable, which means that MAGNAT's
return on investment would be significantly positive.

Furthermore, positive strategic effects are anticipated as a result of
MAGNAT's development into an integrated real estate group. For example,
expansion to asset management for third parties is planned without delay.

The capital increase will be part of a restructuring measure, over which
the shareholders of the Company are to pass various resolutions, including
on the conversion of MAGNAT into a joint stock corporation, at the Annual
General Meeting on 29 October 2009. As a result of this conversion, the
General Partner of MAGNAT, MAGNAT Management GmbH, will resign from its
position.

End of publication


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Information and Explaination of the Issuer to this News:

Additional information

Internalisation of the hitherto external asset management will
significantly improve MAGNAT's structural and operational position;
furthermore, in the interest of the shareholders of MAGNAT it sets the
course for sustainable growth and future profitability. The following
points speak in favour of the integration of R-QUADRAT Immobilien GmbH:

1.) Improved transparency

Integration of the external asset manager, R-Quadrat, will lead to clear
structures and increased transparency in terms of cost and performance

2.) Profitable growth

Integration of the asset manager, which operates on the third market, is a
substantial growth driving measure

3.) Strengthened liquidity position

Integration of the profitable R-Quadrat provides access to additional
liquidity

4.) Concentration of expertise

Concentration of extensive real estate expertise in one integrated group

5.) Improved corporate governance

Conversion into a joint-stock corporation leads to significantly improved
corporate governance.

Jan Oliver Ruester, CEO of MAGNAT, comments: 'Through integrating the
hitherto external asset management, we are planning a decisive and
consistent step towards growth and additional liquidity as well as a
significant plus in expertise. The basis for rapid and smooth integration
is given as a result of our long-standing partnership with R-QUADRAT. The
proposed conversion into a joint stock corporation will also lead to an
optimisation of our corporate structure. It is thus clear that we are
creating the basis for lasting added value for our shareholders.'

Contact:

Investor Relations

MAGNAT Real Estate Opportunities GmbH & Co. KGaA

Grüneburgweg 18

D-60322 Frankfurt am Main

Tel.: +49 (0) 69 719 189 79 36

Email: 



08.09.2009  Financial News transmitted by DGAP

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Language:     English
Company:      MAGNAT Real Estate Opportunities GmbH & Co. KGaA
              Grüneburgweg 18
              60322 Frankfurt am Main
              Deutschland
Phone:        +49 (0)69  / 719 189 79 0
Fax:          +49 (0)69  / 719 189 79 11
E-mail:       
Internet:     www.magnat-reop.com
ISIN:         DE000A0XFSF0
WKN:          A0XFSF
Listed:       Regulierter Markt in Frankfurt (General Standard);
              Freiverkehr in Berlin, Stuttgart
 
End of News                                     DGAP News-Service
 
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Contact
DEMIRE Deutsche Mittelstand Real Estate AG
Robert-Bosch-Straße 11
63225 Langen
phone: +49 (0) 6103 – 372 49-0
fax: +49 (0) 6103 – 372 49-11
email:
Web: www.demire.ag

INVESTOR RELATIONS CONTACT
Michael Tegeder
Leiter Investor Relations
& Corporate Finance

phone: +49 (0) 6103 37249 44
fax: +49 (0) 6103 37249 11
email:

PUBLIC RELATIONS CONTACT
RUECKERCONSULT GmbH
Mr Nikolaus von Raggamby
phone: +49 30 28 44 987 40
email: