DGAP-Adhoc: Colonia Real Estate and Merrill Lynch acquire a

Colonia Real Estate AG / Joint Venture/Miscellaneous

08.02.2008 

Release 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.
---------------------------------------------------------------------------

Colonia Real Estate and Merrill Lynch acquire a mixed real estate portfolio
in Germany

 Commercial and residential property portfolio with locations in Munich,
  Berlin, Hannover, Frankfurt, Dusseldorf and Cologne
 CRE Resolution GmbH takes over the Asset Management of the Portfolio


Cologne, 8th of February 2008  Colonia Real Estate AG (ISIN DE0006338007)
and Merrill Lynch Global Principal Investments ('ML-GPI') signed a joint
venture contract to acquire a mixed commercial and residential real estate
portfolio from a German insurance company. The acquisition price amounts to
around EUR 75mn. Merrill Lynch holds 90% of the joint venture, and Colonia
Real Estate the remaining 10%.

The Portfolio consists of 28 properties in nine different locations in
Germany with a combined  area of roughly 69,000 square metres. Of this, 40%
is residential and 60% commercial real estate. The bulk of the properties
are located in Munich, Berlin, Hannover, Frankfurt, Dusseldorf and Cologne.

Colonia´s asset management unit CRE Resolution GmbH, acted as ML-GPI´s
advisor in this transaction and will take over the asset management of the
portfolio. ML-GPI and CRE AG intend to optimize the return on the portfolio
by reducing current vacancy rates and adding value to the assets.

---------------------------------------------------------------------------

Information and Explaination of the Issuer to this News:

Through ML-GPI, Merrill Lynch is one of the most active investors in the
German real estate market. ML-GPI and Colonia did a first similar
transaction together in March last year.


Contact:
Christoph D. Kauter
Head of Corporate Finance and Investor Relations

Colonia Real Estate AG
Zeppelinstr. 4-8
50667 Köln

Telefon: +49 (0)221 71 60 71 0
Fax:     +49 (0) 221 71 60 71 99
E-Mail:  ir@cre.ag


PR and Press Contact:
edicto GmbH
Axel Mühlhaus
Tel.: +49 (0) 69 9055055-2
amuehlhaus@edicto.de


DGAP 08.02.2008 
---------------------------------------------------------------------------
Language:     English
Issuer:       Colonia Real Estate AG
              Zeppelinstr. 4 - 8
              50667 Köln
              Deutschland
Phone:        +49 221-716071-0
Fax:          +49 221-716071-99
E-mail:       info@cre.ag
Internet:     www.cre.ag
ISIN:         DE0006338007
WKN:          633800
Indices:      SDAX, GPR 250, MSCI Germany Small Cap Index, FTSE EPRA/
              NAREIT, E&G DIMAX
Listed:       Regulierter Markt in Berlin, Frankfurt (Prime Standard),
              Düsseldorf; Freiverkehr in Hamburg, München, Stuttgart
End of News                                     DGAP News-Service
---------------------------------------------------------------------------
DGAP-Adhoc: Colonia Real Estate and Merrill Lynch acquire a mixed real estate portfolio in Germany
