Colonia Real Estate AG Raises Approx. EUR 179mn New Capital

THIS ANNOUNCEMENT IS NOT FOR PUBLICATION OR DISTRIBUTION IN THE
UNITED STATES OF AMERICA, CANADA, JAPAN OR AUSTRALIA.

Colonia Real Estate AG (ISIN: DE0006338007, WKN 633800) has
concluded its share capital from EUR 15,704,000 to EUR 21,985,600 by
issuing 6,281,600 new ordinary shares from authorized capital. The
company successfully raised approx. EUR 179 million of gross proceeds
in an indirect rights offering in which new ordinary shares were
offered to existing shareholders of Colonia Real Estate AG at a
subscription ratio of two new shares for every five shares held. New
shares were offered to shareholders at a subscription price of Euro
28.50 per new share. Rights trading took place from 26 April until 4
May and the subscription period commenced on 26 April and ended on 9
May. The take-up quota was 99.71%, that means 6,263,446 of 6,281,600
new shares were drawn.

Following the completion of the capital increase, the shareholder
structure of Colonia Real Estate AG has changed. Swiss Real Estate AG,
Colonia Real Estate AG's largest shareholder, keeps a holding of
approx. 27.5% (prior to the capital increase: approx. 32.5%) in the
company, enhancing the free float from approx. 67.5% to approx. 72.5%
after the capital increase.

'The successful completion of the rights offering and the strong
demand for the shares during the subscription period support the
further expansion of our company in both our residential principal
investments and the combined asset management/ co-investment
business', explained Stephan Rind, CEO of Colonia Real Estate AG.

UBS Limited as Global Co-ordinator, Merrill Lynch International as
Joint Bookrunner and UniCredit Markets & Investment Banking as Co-Lead
Manager acted as underwriters on Colonia Real Estate AG's indirect
rights offering. Silvia Quandt Bank - Repraesentanz der biw Bank fur
Investments und Wertpapiere AG acted as Selling Agent.

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 announcement 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. The shares offered in connection
with the rights offering have already been placed.

This announcement is not an offer of securities for sale in the
United States. Securities may not be offered or sold in the United
States 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. Colonia Real Estate AG
does not intend to register any part of the offering in the United
States.

This announcement is directed at and/or for distribution in the
United Kingdom: only to (i) persons who have professional experience
in matters relating to investments falling within article 19(5) of the
Financial Services and Markets Act 2000 (Financial Promotion) Order
2005 (the 'Order') or (ii) high net worth entities falling within
article 49(2)(a) to (d) of the Order (all such persons being together
referred to as 'relevant persons'). This announcement is directed only
at relevant persons. Any person who is not a relevant person should
not act or rely on this announcement or any of its contents. Any
investment or investment activity to which this announcement relates
is available only to relevant persons and will be engaged in only with
relevant persons.

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

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Contact:
Christoph D. Kauter
Head of Investor Relations

Colonia Real Estate AG
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

Sylvia Faber

Citigate Dewe Rogerson GmbH
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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