Colonia Subsidiary Resolution GmbH Advised on Transaction and Will
Handle Portfolio Asset Management Going Forward
The requirements laid down in the purchase agreement signed by
Colonia Real Estate AG (ISIN DE0006338007) on June 30, 2006 were met
today following the approval of the Creditors" Committee of the
insolvent Helle Aue Grundbesitz GmbH & Co KG and the issue of a bank
guarantee for the purchase price due in January 2007. As a result,
ownership of the 2,487 apartments is transferred to Colonia Real
Estate AG.
The residential real estate portfolio comprises total residential
space of around 148,000 m(2). The acquired apartments were extensively
renovated in 2001 / 2002 at a cost of EUR 640 per square meter, for a
total of just under EUR 95 million. The agreed purchase price is EUR
83.2 million.
The Berlin team at Resolution GmbH - Colonia Real Estate Group`s
Asset Management Division - will begin active rental management
immediately. The aim is to halve the portfolio"s current vacancy rate
of around 21 percent over the next two years. Further acquisitions of
residential portfolios in the Greater Berlin area are planned in the
near future.
Information and Explaination of the Issuer to this News:
Colonia Real Estate AG is a listed real estate investment group
focusing on the German market. Its integrated business model consists
of three synergistic cornerstones: The Investment Division
concentrates 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
specializes in asset management for the Group as well as for complex
domestic real estate portfolios held by international investors, whom
it also advises on transactions. The focus is on yield optimization
and realizing appreciation potential. CRE Fonds Management GmbH's core
business is the conception, the marketing and the management of
structured investment products such as closed-end real estate funds
for institutional investors and private clients.
This news release contains forward looking statements based on
current assumptions and forecasts made by Colonia Real Estate Group
management. Various know and unknown risks, uncertainties and other
factors could lead to material differences between the actual future
results, financial situation, development or performance of the
company and the estimates given here. The company assumes no liability
whatsoever to update these forward-looking statements or to conform
them to future events or developments.
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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
Listed: Amtlicher Markt in Berlin-Bremen, Frankfurt (Prime
Standard), Dusseldorf; Freiverkehr in Hamburg, Munchen,
Stuttgart
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