Colonia Real Estate AG / Miscellaneous
27.06.2008
Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
Colonia Real Estate AG and Oaktree terminate Asset Management co-operation
from 2009 on
Strategic decision of Oaktree to internalize asset management
New mandates in the field of office real estate in preparation
Cologne, 27. June 2008 Colonia Real Estate AG (ISIN DE0006338007 and
Oaktree Capital Management LP('OCM') will end their asset management
co-operation at the end of the year 2008. The termination of the mandate
resulted from the execution of an ordinary contractual right of cancelation
by OCM to CRE Resolution with effect of December 31, 2008. Until this point
in time the mandate will be perpetuated without any constraints. The
termination of the service agreement is subject to a strategic decision by
OCM that the properties acquired in Germany will be managed by OCM´s asset
management subsidiary, the Cologne based German Acorn Real Estate GmbH from
2009 onwards. The existing current stake of 4.8% of Colonia Real Estate AG
in OCM German Real Estate Holding remains. The proportion of asset
management fees generated thorugh this co-operation in respect to
Resolution´s total revenue was 8.37% in 2007 and is expected to be
compensated by new business in the upcoming months.
New Mandates in the field of asset management with the focus of value add
office portfolios are in preparation. In the past, requests by other
investors in this segment could not been tracked as a matter of conflicts
of interests with the existing contractual relationship. These new
potentials will be utilized from now on.
---------------------------------------------------------------------------
Information and Explaination of the Issuer to this News:
'We in fact regret Oaktree´s strategic decision to internally manage their
commercial property inventory from 2009 onwards, but fully understand this
logical step. However, the termination of the mandate also reopens
opportunities for us to offer the newly available resources for other
potential investors. Our expertise, particularly in office properties, to
boost value adding potentials through professional management, intelligent
refurbishment and subsequent repositioning are with respect to the actual
business environment more demanded than ever. The cease of a potential
conflict of interest reopens new opportunities for us', says Stephan Rind,
CEO of Colonia Real Estate AG.
The joint stake in the 'Herkules' portfolio of DEKA Immobilien of Oaktree
and Colonia Real Estate in September 2006 with a transaction volume of
about EUR 1 Billion at that time marked one of the most important office
real estate transactions in the German market. The Colonia Real Estate
Group, since that time, is considered as pioneer in the emerging business
of asset management and currently serves mandates for reputable investors
in the German market such as Blackstone, Merrill Lynch, UBS, JP Morgan and
Strategic Value Partner.
Contact:
Christoph D. Kauter
Head of Corporate Finance and Investor Relations
Colonia Real Estate AG
Zeppelinstr. 4-8
50667 Köln
Tel: +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
E-Mail: amuehlhaus@edicto.de
DGAP 27.06.2008
---------------------------------------------------------------------------
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 Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, München, Hamburg, Düsseldorf, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------------
DGAP-Adhoc: Colonia Real Estate AG and Oaktree terminate Asset Management co-operation from 2009 on
| Source: EQS Group AG