Corporate | 14 June 2007 09:21
MAGNAT Real Estate Opportunities GmbH & Co. KGaA / Miscellaneous/Miscellaneous Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- MAGNAT Real Estate Opportunities GmbH & Co. KGaA has invested in another promising project in Romania. MAGNAT, through a local project company 75% owned by MAGNAT, purchased a site for residential development in the Vacaresti district of Bucharest. On a 6.900 sqm plot of land, approximately 400 apartments with 37.000 sqm of sellable floor space will be built. Total investment volume will be approximately 40 million Euros. The project, only a few kilometres south-east of the centre of Bucharest, is favourably situated nearby a subway station, as well as a shopping mall that is under construction and that will be finished at the time of completion of the project. Due to the imbalanced supply-demand ratio Bucharest, sales of apartments are possible already off-plan or in early stages of development. Due to this market situation, high two-digit returns on equity are possible, also supported by the possibility to make efficient use of capital. Also, further price rises are expected. MAGNAT-CEO Jan O. Ruester comments: 'The residential market in Bucharest is characterised by a high level of demand and vacancy rates of almost nil. For this reason, and because we were able to acquire the site for an attractive price, we believe to have a very attractive project.' For the years to come, MAGNAT expects a continued outperformance of the residential development sector in Bucharest. Further Investments are therefore analysed. +++ About MAGNAT: MAGNAT is a German real estate company focusing on real estate development in Eastern Europe, supplemented by special situations in its home market Germany. Management focuses on undervalued real estate markets and on markets with high growth rates. The strategy of MAGNAT is opportunistic and capitalizes on inefficiencies in real estate markets. In contrast to traditional investment strategies, MAGNAT not only benefits from rental income, but primarily from attractive development yields and a comparably short time of capital employed in its projects. All projects must meet an above-average yield requirement. Seed investors of MAGNAT are the Silvia Quandt family, the two financial investors Themis Equity Partners and Heliad Equity Partners, and the management. MAGNAT Real Estate Opportunities GmbH & Co. KGaA Grüneburgweg 18 60322 Frankfurt am Main Investor Relations Jan O. Rüster, CEO Tel.: +49 (0) 69 719 189 79 0 E-Mail: jan.ruester@magnat-reop.com Press Relations edicto GmbH Axel Mühlhaus / Werner Rüppel Tel.: +49 (0) 69 905 50 55 2 E-Mail: amuehlhaus@edicto.de DGAP 14.06.2007 ----------------------------------------------------------------------