DGAP-News: MAGNAT Real Estate AG / Key word(s): Miscellaneous MAGNAT Real Estate AG: MAGNAT reports another successful sale of part of the Turkish YKB portfolio 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 portfolio. 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 present. 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 approaches.' About MAGNAT 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. Contact 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 Email: ir@magnat-reop.de Web: www.magnat.ag Press Relations edicto GmbH Axel Mühlhaus/Werner Rüppel Telephone: +49 (0) 69-905 50 55 2 Email: amuehlhaus@edicto.de End of Corporate News --------------------------------------------------------------------- 20.01.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------- Language: English Company: MAGNAT Real Estate AG Lyoner StraÃe 32 60528 Frankfurt am Main Deutschland Phone: +49 (0)69 / 719 189 79 0 Fax: +49 (0)69 / 719 189 79 11 E-mail: info@magnat-reop.com Internet: www.magnat.ag 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
DGAP-News: MAGNAT Real Estate AG: MAGNAT reports another successful sale of part of the Turkish YKB portfolio
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