Fair Value REIT-AG / Disposal 18.12.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- - Profits of 1 million recognized in income generated by sale - Spanish group of investors acquires property as of the end of the year Munich, December 18, 2008 Fair Value REIT-AG has sold the office property 'Airport Office II' in Düsseldorf. The property, which is located in direct proximity to Düsseldorf International Airport's terminal building, changes hands for a purchase price of around 15.3 million. Fair Value REIT-AG first acquired the property, which was then under construction, in October 2007. The successful sale means that according to IFRS the company records profits recognized in income of around 1 million after selling costs have been deducted. The property has been bought by a group of Spanish investors, with ownership, risks and rewards being transferred at the latest by December 30, 2008. Frank Schaich, Fair Value REIT-AG's CEO, explains the background to the transaction: 'The location and the anticipated demand from tenants convinced us from the very outset. That is why we bore the entire rental risk for this property ourselves when we acquired it. Back in September 2008, just three months after its completion, contracts were already concluded for all of the office space and parking lots. As we believe that, given the current situation on the market, it is important to document this success by recording profits, we engaged Jones Lang LaSalle to market the property to international investors after they successfully assisted in fully letting the property.' The successful sale of the property underscores Fair Value REIT-AG's competence in creating value even on a difficult market. 'We were able to exceed our original forecast for contractual rent by 9% - which is a key factor behind the attractive purchase price we have now generated. This was a highly profitable investment for our company, with a total return of around 20% of the equity invested,' Frank Schaich went on to say. 'The sale will cause our equity ratio under Section 15 of the German REIT Act to increase on the balance sheet date. The proceeds will also increase our latitude to exploit investment opportunities by using the exit tax privilege.' Company profile Munich-based Fair Value REIT-AG focuses on the acquisition, rental, property management and sale of commercial properties in Germany. Its investment activities focus primarily on offices, logistics and retail properties in German regional centers. As a REIT-AG, Fair Value is not subject to corporation or trade tax and benefits from the exit tax privilege when purchasing properties. Fair Value's USP is that in addition to investing directly in real estate it also acquires interests in closed-end real estate funds. In its 'Participations' segment Fair Value currently owns interests in 13 closed end real estate funds with a highly diversified portfolio of 49 properties. The rental area of this portfolio totals 421,864 m² and had a market value of around 553 million as of June 30, 2008 (Fair Value's interest in this portfolio currently totals around 223 million). In its 'Direct Investments' segment, Fair Value acquired a portfolio of 32 commercial properties in the federal state of Schleswig-Holstein with a rental area of 42,940 m², mostly used as bank branches. These properties had a total market value of around 49.0 million as of June 30, 2008. In the third quarter of 2008, the portfolio was further enlarged by the completion of the office building 'Airport Office II' in Düsseldorf with investment costs of 14 million. As of September 30, 2008, the total portfolio which has a proportionate market value of 286.1 million for Fair Value, had an economic occupancy level of more than 95% of the potential annual rent of around 23.5 million. Around 47% of potential rent stems from offices, 40% from retail facilities, 8% is from logistics facilities and 5% from other facilities. Contact Investor & Media Relations cometis AG Ulrich Wiehle Tel.: +49(0)611 205855-11 Fax: +49(0)611 205855-66 e-mail: wiehle@cometis.de DGAP 18.12.2008 --------------------------------------------------------------------------- Language: English Issuer: Fair Value REIT-AG Leopoldstraße 244 80807 München Deutschland Phone: +49 (0)89 9292 815-01 Fax: +49 (0)89 9292 815-15 E-mail: info@fair-value-reit.de Internet: www.fair-value-reit.de ISIN: DE000A0MW975 WKN: A0MW97 Indices: RX REIT All Share Index, RX REIT Index Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Stuttgart, München End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: Fair Value REIT-AG sells office property 'Airport Office II' in Düsseldorf
| Source: EQS Group AG