Adler Real Estate AG / Miscellaneous 21.02.2008 Release of a Corporate-announcement, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- ADLER Real Estate AG expands asset management activities - Investment volume under management about EUR 200 million - Foundations laid for growth in operations - Not affected by the US subprime lending crisis - Stock considerably undervalued Hamburg, February 21, 2008 ADLER Real Estate AG, Hamburg, is consistently expanding its asset management unit. Investment volume under management is already around EUR 200 million. 'This gives us a good foundation for the further expansion of this unit' says Management Board Member Axel Harloff. 'In the near time, we aim to expand our investment volume to 500 million EUR.' In addition to asset management, the Company also maintains a property management business. 'Due to these activities and our work in various real estate development projects, we have not been affected by the US mortgage crisis' stresses Harloff. 'As a result, it is incomprehensible to our shareholders and to us why our stock is so undervalued at the moment.' Based on earnings for the first nine months of 2007, the stock currently has a price-earnings (PE) ratio of just 2 to 2.5. This valuation does not take into account the expansion of the Company's asset management and property management businesses, which provide a steady stream of income for ADLER Real Estate AG, in addition to participating in the appreciation of the properties through the frequent acquisition of minority stakes. 'This makes us stronger and, at the same time, less dependent on the performance of the real estate development business' says Management Board Member Barbara Yaltrak. In expanding its asset management business, ADLER has taken advantage of the many years of experience and the extensive connections of its management team and employees. 'We offer the full value chain, as well as ideal access to the German real estate market, especially for international clients' continues Yaltrak. To this end, ADLER has concluded two agreements with AIG Global Real Estate Investment (Europe) Ltd., a subsidiary of the world's leading insurance company, American International Group, Inc. ADLER assumed management of two portfolios with a total value of EUR 136 million, by acquiring a 15% share in potential future appreciation. One of the two portfolios consists of twelve high-quality office buildings in Berlin, Frankfurt, Munich and other German cities, with a total of 54,000 sqm in leased space. The value of this portfolio is about EUR 78 million. The other portfolio comprises four high-quality office buildings in good locations in the greater Munich area, with a total of 35,000 sqm in leased space and a total investment volume of EUR 58 million. Already in the preceding year, AIG and ADLER joined forces to acquire Airport Center Luxembourg, with ADLER assuming a 10% share, as well as asset management responsibilities. 'In addition to our core project development business and the development of our own portfolio, our Company is built on three pillars, of which asset management will develop into the most important in the medium term' says Yaltrak. 'Nevertheless, we are continuing to develop our own real estate portfolio and are working diligently to complete our ongoing real estate projects' says Harloff. 'In these areas as well, we have not been particularly affected by the US subprime lending crisis.' Unlike most European and North American markets, the German real estate market is at the beginning of a broad-based upswing. 'After years of declining property values in all regions, we have seen a recovery beginning, as always, in prime locations in large urban centers' says Harloff. 'This trend will solidify, which will take time, since the German real estate market is so big and so broad that major changes take a lot of time.' About ADLER Real Estate AG: ADLER Real Estate AG is active in asset management, building-up of portfolio properties and commercial real estate development. The Company's core competence consists in value and profit orientated asset management and focuses on the realization and marketing of high quality real estate projects. Hence, ADLER Real Estate AG aims to strategic partnership if major projects occur. ADLER Real Estate AG's history dates back to the renowned Adlerwerke in Frankfurt which were founded in the 19th century. If you have any questions, please contact: german communications dbk ag Jörg Bretschneider Alsterufer 34, 20354 Hamburg Phone: 040/46 88 33 0, Fax: 040/47 81 80 presse@german-communications.com DGAP 21.02.2008 --------------------------------------------------------------------------- Language: English Issuer: Adler Real Estate AG Neuer Wall 77 20354 Hamburg Deutschland Phone: +49 (0)40 - 29 8130-0 Fax: +49 (0)40 - 29 8130-35 E-mail: info@adler-ag.de Internet: www.adler-ag.de ISIN: DE0005008007 WKN: 500800 Listed: Regulierter Markt in Berlin, Frankfurt (General Standard), Düsseldorf, München; Freiverkehr in Hamburg End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: Adler Real Estate AG: ADLER Real Estate AG expands asset management activities
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