DGAP-News: PWC Special audit at TAG Immobilien AG invalidates allegations against Rolf Elgeti and completely refutes negative assertions

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DGAP-News: TAG Immobilien AG / Key word(s): Miscellaneous
PWC Special audit at TAG Immobilien AG invalidates allegations against
Rolf Elgeti and completely refutes negative assertions

03.02.2014 / 07:15



PWC Special audit at TAG Immobilien AG invalidates allegations against Rolf
Elgeti and completely refutes negative assertions

Hamburg, 3 February 2014 - TAG Immobilien AG ('TAG' or 'the Company' in the
following) announces that the Company's Supervisory Board has received the
results of the external special audit by the PricewaterhouseCoopers AG
auditing company ('PWC' in the following). In conclusion, PWC has
completely invalidated the allegations that a newspaper had raised against
organs of TAG in early October 2013, regarding allegedly disadvantageous
acquisitions and conflicts of interest between the CEO Mr Rolf Elgeti and
TAG, and has completely refutes the negative assertions.

PWC conducted the investigation during the period from late October 2013 to
mid-January 2014 and came to the following conclusions:

* The residential portfolios in Chemnitz and Eberswalde were not purchased
at an inflated price. In each case, the purchase price was within the
corridor of the offers received by TAG and within the portfolios' market
values as determined by third parties including PWC. Since the purchase
prices were partly paid in shares at a price above the share price on that
day, it can be assumed that favourable financing was obtained at attractive

* PWC rules out that the acquisition of the Rostock property by the CEO was
in any way a preferential purchase. TAG had declined to purchase the
property prior to its purchase by the buyer, in which Mr Elgeti owns a 19 %
stake, in October 2012. The purchase price paid exceeded the market value
at the time as determined by PWC during its special audit.

* The private real-estate transactions that Mr Elgeti has made since taking
over the office of CEO in 2009 were covered in the employment contract and
were made with the Supervisory Board's approval in each case. PWC found no
evidence of exertion of influence by Mr Elgeti regarding purchase
decisions, nor of conflicts of competition and/or interest.

Specifically, the article claimed that excessive prices had been paid in
the acquisition of two residential portfolios in Chemnitz and Eberswalde in
2011 and 2012, and that the transactions may have been to the detriment of
the Company. It also alleged conflicts of interest that had existed in
connection with the CEO's 2012 purchase of the apartment building in
Rostock, and which might have arisen through non-disclosed private business
activities by the CEO in various real estate companies.

'I'm glad that these allegations, which were untenable from the beginning,
have now been disproved by an independent agent as well,' says TAG
Immobilien AG CEO Rolf Elgeti. 'Now we can concentrate all the more on
enhancing TAG's position as one of the most effective and efficient
real-estate companies in Germany.'

To avoid any appearance of possible conflicts of interest, Mr Elgeti
already transferred his private business activities, insofar as they relate
to real estate and his holdings in various companies, to an accounting firm
at the turn of the year. During his tenure as CEO of TAG, Mr Elgeti will
continue this trusteeship solution in place and will not exercise
significant influence on the operational activities of his privately held
real-estate companies.

The Supervisory Board, which had already expressed its full confidence in
Mr Elgeti in October 2013, feels it has been confirmed in its assessment:
'We regret any confusion that may have arisen, and which we have now
conclusively eliminated with this expert assessment,' says Dr Lutz R.
Ristow, Chairman of the TAG Supervisory Board.

Press enquiries:
TAG Immobilien AG
Head of Investor & Public Relations
Dominique Mann
Phone +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 390

End of Corporate News


03.02.2014 Dissemination of a Corporate News, transmitted by DGAP - a
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Language:    English                                                    
Company:     TAG Immobilien AG                                          
             Steckelhörn 5                                              
             20457 Hamburg                                              
Phone:       040 380 32 0                                               
Fax:         040 380 32 390                                             
E-mail:      ir@tag-ag.com                                              
Internet:    http://www.tag-ag.com                                      
ISIN:        DE0008303504, XS0954227210                                 
WKN:         830350, A1TNFU                                             
Indices:     MDAX                                                       
Listed:      Regulierter Markt in Frankfurt (Prime Standard), München;  
             Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,      
End of News    DGAP News-Service  
250663 03.02.2014