Colonia Real Estate AG / Strategic Company Decision 23.10.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- No impact on CRE´s annual figures 2008 Decision about further solar project strategy in the beginning of 2009 Cologne, October 23rd 2008 Colonia Real Estate AG (ISIN DE0006338007) officially announced today that the business cooperation with Systaic AG is dissolved. Already in the beginning of October Systaic terminated the cooperation agreement with CRE; a few days before, the Düsseldorf based solar company had already announced the cancelation in their September 25th prospectus. This master agreement had been signed in March 2008 and included the supply of solar panels for CRE´s own portfolio as well as for third party clients up to a volume of 100 million euro until the 30th of June 2009. After a detailed legal assessment CRE considers the cancellation as invalid but sees no basis for further successful cooperation with Systaic. The delay of the installation of solar panels in CRE´s portfolio was mainly based on the refusal of the lender of senior mortgages to allow first ranking easements ('erstrangige Dienstbarkeiten') as security for the financing of solar panels. This refusal was not to be expected, because CRE received positive feedback prior to the signing of the master agreement by the lenders. 'For the allowance of usual security we were able to find a solution in the meantime', says CEO Stephan Rind, 'we have received binding financing commitments from a German bank with 10 percent equity on the basis of a second ranking easement ('zweitrangige Dienstbarkeit').' In 2009 the guaranteed cash flows for solar panels in Germany will be reduced by law by nine percent. In addition, solar market experts expect price drops for solar panels in 2009. Therefore, CRE will review its solar business and recalculate the profitability of its solar projects early 2009 based on the price development of solar panels in the market. The termination of the master agreement with Systaic has no impact on CRE´s annual figures 2008. The potential lost revenues from the solar projects of six to eight million euro starting in 2009 would reduce the potential profits after financing cost, taxes, and depreciation of not more than one million euro annually. PR and Press Contact: Thomas Busch Head of Marketing and Communication Telefon: +49 (0)221 71 60 71 0 Fax: +49 (0) 221 71 60 71 99 E-Mail: t.busch@cre.ag Website: www.cre.ag edicto GmbH Axel Mühlhaus Tel.: +49 (0) 69 9055055-2 amuehlhaus@edicto.de DGAP 23.10.2008 --------------------------------------------------------------------------- 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-News: Colonia Real Estate AG: Termination of Business Cooperation with Systaic AG
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