Colonia Real Estate AG: Further Record Result in Full Year 2006 - Revenue Increases to Euro 128.5mn with Net Earnings at Euro 31.2mn

Colonia Real Estate AG (ISIN DE0006338007) presents for the full
year 2006 again a record result. The company increased in all business
units its revenues and net earnings. Revenue was growing to Euro
128.5mn compared to Euro 43.5mn in 2005. In the same period the net
earnings improved to Euro 31.2mn from Euro 6.8mn in the full year
2005, with EBIT climbing to Euro 51.5mn from a previous Euro 12.9mn.

The significant earnings contribution is based on strong growth in
the investment and asset management unit. Especially the residential
units held on the balance sheet have been substantially increased from
2,780 units by the end of 2005 to a record 9,055 units at the end of
2006. Half of the properties have been acquired in the fourth quarter
2006, nevertheless the revenues from rental income has been more then
doubled in 2006 to Euro 16.3mn from a previous Euro 7.6mn in 2005.

Total assets in the balance sheet increased to Euro 420.2mn versus
Euro 141.4mn the year before with equity increasing to Euro 100.2mn,
compared to Euro 32.3mn in 2005. The long and short term debt was Euro
320.0mn at the end of 2006 after Euro 109.0mn. This leads to an
improved equity ratio of 23.8% compared to 22.9% in 2005.

In the business unit asset management, the total new assets under
management have been growing by around Euro 1,500 since the
acquisition of Resolution GmbH in April 2006. The CRE Fonds Management
GmbH - which was as well founded in April 2005 - started successfully
with the conception of its nursery home fund'Careinvest I', a
structured product for institutional investors. The placement of this
nursery home speciality fund with a volume of Euro 57mn was closed in
February 2007, contributing its proceeds in this unit in 2007.

Explainatory part:

'Through our clear focus on the acquisition of high-yielding real
estate properties and the dynamic expansion in the asset management to
one of the leading, Germany wide present companies in 2006, we built a
cornerstone for further dynamic growth in 2007', mentions Stephan
Rind, CEO of Colonia Real Estate AG. 'The conversion from an
opportunistic residential real estate investor to an integrated
investment and asset management company was successfully completed.'
With the signing of two purchase contracts of 51% of the shares on two
real estate companies with a total of 10,100 units in February 2007,
Colonia Real Estate AG almost reached its year end target of holding a
residential real estate portfolio of around 20,000 units. Further
acquisitions in real estate as well as in co-investments in office
portfolios are planned for this year.

The complete full year 2006 report will be available under
www.cre.ag in the middle of April.

About Colonia Real Estate AG

Colonia Real Estate AG (Reuters: KBUG.DE / Bloomberg: KBU GY) is a
listed real estate investment and management company focusing on the
German market. Its integrated business model consists of three
synergistic cornerstones: The Investment Division focuses on
high-yield residential property portfolios held for the company's
account and opportunistic co-investments in commercial real estate
together with prominent partners. Resolution GmbH has operations
across Germany and specializes in asset management for the Group as
well as for supraregional real estate portfolios held by international
investors, whom it also advises on transactions. The focus is on yield
optimization and the realization of appreciation potential. CRE Fonds
Management GmbH's core business is the conception, marketing and
management of structured investment products such as closed-end real
estate funds for institutional investors and private clients.

This release is not a prospectus and, to the extent that it may
constitute an advertisement, does not constitute an offer to sell or
the solicitation of an offer to purchase the shares or other
securities of Colonia Real Estate AG.

This release is not an offer of securities for sale in the United
States of America. Securities may not be offered or sold in the United
States of America absent registration or an exemption from
registration under the U.S. Securities Act of 1933, as amended. Any
public offering of securities to be made in the United States of
America will be made by means of a prospectus that may be obtained
from Colonia Real Estate AG and that will contain detailed information
about the company and management, as well as financial statements.

The information contained herein is not for publication or
distribution in Canada, Australia or Japan and does not constitute an
offer of securities for sale in Canada, Australia or Japan.

This news release contains forward-looking statements based on
current assumptions and forecasts made by the management of Colonia
Real Estate AG. Various risks, uncertainties and other factors could
lead to material differences between the actual future results,
financial situation, development or performance of Colonia Real Estate
AG and the estimates given here. Colonia Real Estate AG assumes no
liability whatsoever to update these forward-looking statements or to
conform them to future events or developments.

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Colonia Real Estate AG
Christoph D. Kauter
Head of Investor Relations
Zeppelinstr. 4-8 50667 Koln
Telefon: +49 (0)221 71 60 71 0
Fax: +49 (0) 221 71 60 71 99
E-Mail: ir@cre.ag
or
Citigate Dewe Rogerson GmbH
Sylvia Faber
Goethestrasse 26-28 60313
Frankfurt am Main
Tel: 0049-69 90 500 - 100
Fax: 0049-69 90 500 - 101
E-Mail: sylvia.faber@citigatedr.de

Language: English
Issuer: Colonia Real Estate AG
Zeppelinstr. 4 - 8 50667
Koln Deutschland
Phone: 0221-716071-0
Fax: 0221-716071-99
E-mail: info@cre.ag
www: www.cre.ag
ISIN: DE0006338007
WKN: 633800
Indices: SDAX, GPR 250, MSCI Germany Small Cap Index, FTSE EPRA/
NAREIT, E&G DIMAX
Listed: Amtlicher Markt in Berlin-Bremen, Frankfurt (Prime Standard),
Dusseldorf; Freiverkehr in Hamburg, Munchen, Stuttgart
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