DGAP-Adhoc: Colonia Real Estate AG: Concentration on Core Business

Colonia Real Estate AG / Strategic Company Decision/Agreement

08.12.2008 

Release of a Adhoc News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Colonia Real Estate AG: Concentration on Core Business

- Management buyouts at Colonia Fonds Management GmbH and SolarRe AG
- Merger of other subsidiaries
- Focusing to produce cost savings of approximately € 1.2 million per annum
Cologne, 8 December 2008 – Colonia Real Estate AG (ISIN: DE0006338007) is
divesting itself of several lines of business as it continues to sharpen
its operational focus. Additionally, subsidiaries are being merged in order
to streamline the corporate structure. These measures are expected to
generate savings of over € 1.2 million per year.

As part of its ongoing restructuring efforts, Colonia Real Estate has sold
today its stake in Colonia Fonds Management GmbH. The company’s management
has bought the 56 percent share held by CRE effective retroactively as of
December 1st 2008. This action does not affect the nursing-care facility
fund HGA/Colonia CareConcept 1. The fund, a joint venture product in
association with HGA Capital Grundbesitz und Anlage GmbH, is currently in
the placement phase.

Additionally, Colonia Real Estate AG has decided not to pursue the
third-party solar business. Consequently, the Group’s 20 percent share in
SolarRe AG, Hamburg, was sold today to the company’s management at its book
value. SolarRe AG was founded in connection with the Group’s internal solar
project, and develops concepts for and advises external companies on
equipping existing properties with solar energy systems.

As part of the implementation of its leanness strategy, Colonia Real Estate
has also merged six subsidiaries with CRE Wohnen. Altogether, these actions
will result in cost savings totaling approximately € 1.2 million per year,
and are part of the previously announced cost-cutting and efficiency
program. Colonia Real Estate can now go forward with a tightly focused
market position that concentrates on the profitable core business areas of
residential real estate and asset management. The asset management segment
also includes the joint ventures for commercial property management.

With around 20,000 residential units and total assets of approx. € 1
billion, Colonia Real Estate is Germany’s third largest publicly traded
residential property company.


Contact:
Stephan Rind
CEO

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:
Thomas Busch
Leiter Marketing und Kommunikation

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


DGAP 08.12.2008 
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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
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