DGAP-News: GAGFAH S.A. / Key word(s): Legal Matter
GAGFAH S.A.: GAGFAH's position relative to the developments in Dresden
25.03.2011 / 11:59
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Press Release: March 25, 2011
GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg
ISIN: LU0269583422
Frankfurt Stock Exchange, Regulated Market (Prime Standard)
GAGFAH's position relative to the developments in Dresden
Luxembourg, 25. March 2011. The City of Dresden has announced that
yesterday night the City Council decided to file a complaint against
certain subsidiaries of GAGFAH. The process shall clarify whether certain
obligations under the sale and purchase agreement on the acquisition of the
WOBA Companies entered into with the City of Dresden in 2006 have been
breached. We have been provided with no background by the City thus far on
the concrete basis of the claim, the amount of the claim, or substantiation
of the amount sought.
While GAGFAH regrets the decision taken by the City of Dresden, the Company
is convinced it has appropriately complied with the spirit and the letter
of the privatization agreement concluded with the City of Dresden, and in
particular to the therein included agreed Social Charta. The key points of
the Charta, and our performance against them, can be summarized as follows:
|[![CDATA[|[pre|]]]|]
Issue Requirement WOBA performance as of
Dec. 31, 2010
Minimum WOBA must maintain min. 35,000 units WOBA has 37,867 units in
number of in Dresden Dresden
units
Limits on Annual maximum of 3% plus percentual Actual increase on 0,83%
rent increase of Official Cost of Living avg. annually
Increases Index
Repair and 5 Euro per square meter 6.56 Euro per square
Maintenance annually meter annually since
inception
Tenant 15% discount for existing tenants Sales obligations
purchase for individual apt. sales fulfilled
discount
|[![CDATA[|[/pre|]]]|]
On all points of the Social Charta, we have, and continue to, perform at or
better than required, as illustrated with the above overview. GAGFAH is
convinced that all obligations from the privatization agreement with the
City of Dresden have been complied with and will, therefore, vigorously
defend against any challenges. Furthermore, GAGFAH strongly rejects any
financial claim sought, and believes that its position will prevail in
arbitration.
Contact
GAGFAH S.A.
Investor Relations
2-4, rue Beck
L-1222 Luxembourg
Tel.: +352 266 366 21
Mail: info@gagfah.com
www.gagfah.com
R.C.S. Luxembourg B 109.526
About GAGFAH S.A.
GAGFAH S.A. is a joint stock corporation organized under the laws of the
Grand Duchy of Luxembourg qualifying as a securitization company under the
Luxembourg Securitization Law of March 22, 2004. The core business of
GAGFAH S.A.'s operating subsidiaries is the ownership and management of a
geographically diversified and well maintained residential property
portfolio located throughout Germany. With a portfolio of more than 158,000
apartments, GAGFAH is the largest German listed residential property
company.
End of Corporate News
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Language: English
Company: GAGFAH S.A.
2-4, rue Beck
1222 Luxemburg
GroÃĀherzogtum Luxemburg
Phone: + 352 266 366 1
Fax: + 352 266 366 01
E-mail: info@gagfah.com
Internet: www.gagfah.com
ISIN: LU0269583422, LU0269583422
WKN: A0LBDT
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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117033 25.03.2011
DGAP-News: GAGFAH S.A.: GAGFAH's position relative to the developments in Dresden
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