GAGFAH S.A. / Key word(s): Legal Matter
02.03.2012 19:38
Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg
ISIN: LU0269583422/WKN: A0LBDT
Frankfurt Stock Exchange, Regulated Market (Prime Standard)
GAGFAH S.A.: AD-HOC PURSUANT TO § 15 WPHG
Law/Contradictory Proceedings
Luxembourg, 2 March 2012: GAGFAH S.A.'s subsidiaries and the State Capital
of Dresden agree on a mutual resolution and termination of the pending
proceedings with respect to the privatization agreement for WOBA DRESDEN
GmbH. The agreement requires the approval of the State Capital of
Dresden's City Council and clearance by the legal supervisory authority of
the State Capital of Dresden.
On 31 March 2011 the State Capital of Dresden initiated two complaints
against subsidiaries of GAGFAH S.A., namely the WOBA Holding GmbH, the
Wohnbau Nordwest GmbH and the SÃDOST WOBA DRESDEN GmbH, claiming contract
penalties for alleged violations of the WOBA privatization agreement in the
total amount of EUR 1.084 billion. The WOBA companies defended themselves
against the complaints. They initiated counter-complaints against the
State Capital of Dresden and its mayor for finance Hartmut Vorjohann.
In the interest of a timely resolution of the disputes and a good and
trustful future cooperation, the parties have now agreed to fully resolve
their disputes by mutual agreement. Today, the WOBA companies and the
State Capital of Dresden have signed a settlement agreement at a notary
that still has to be approved by the City Council and to be cleared by the
legal supervisory authority of the State Capital of Dresden. The City
Council will probably decide about the approval on 15 March 2012.
The settlement agreement provides for the withdrawal of all complaints and
the mutual waiver of the claims put forward in the complaints. The State
Capital of Dresden and the WOBA companies have also agreed on the amendment
of the social regulations of the privatization agreement. Most of these
social provisions have been prolonged by five years until April 2021. The
required minimum investment in the WOBA companies' real estate is raised
from EUR 5 per sqm to EUR 7.56 per sqm (net). Furthermore, the State
Capital's number of occupation rights will be raised by 2,000 units to
10,000 units in total. Additionally, the State Capital of Dresden from
2012 through 2020 receives nine annual installments in the amount of EUR 4
million (EUR 36 million in total). 40 per cent of these payments will be
used for social projects that preferably will be to the benefit of the
GAGFAH Group's tenants in Dresden. Furthermore, the WOBA companies will
bear the State Capital's procedural costs up to an amount of EUR 4 million.
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 approximately
155,000 apartments, GAGFAH is the largest residential property company
listed in Germany.
Contact:
GAGFAH S.A.
2-4, Rue Beck
L-1222 Luxemburg
Grand Duchy of Luxemburg
Tel: +352 266 366 21
RHoffmann@gagfah.com
02.03.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
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Language: English
Company: GAGFAH S.A.
2-4, rue Beck
1222 Luxemburg
Grand Duchy of Luxembourg
Phone: + 352 266 366 1
Fax: + 352 266 366 01
E-mail: info@gagfah.com
Internet: www.gagfah.com
ISIN: LU0269583422, LU0269583422
WKN: A0LBDT
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Düsseldorf, Hamburg, München, Stuttgart
End of Announcement DGAP News-Service
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DGAP-Adhoc: GAGFAH S.A.: AD-HOC PURSUANT TO § 15 WPHG; legal matter
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