AGIV Real Estate Aktiengesellschaft i.L.
AGIV Real Estate AG english

AGIV Real Estate group streamlines structures and eliminates risks Ad-hoc-announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– AGIV Real Estate group streamlines structures and eliminates risks * After the merger followed consolidation and clear next steps * 2002 results affected by negative effects due to AGIV / HBAG merger as well as by adjustments * Exploiting opportunities through anticyclical investments AGIV Real Estate AG, Hamburg, a leading German real estate corporation, is stream-lining its corporate structure and in the face of a downturn in the economy and weak real property markets, the company has assessed and revaluated its identified risks. The company, which previously operated as a holding company, will henceforth be managed as a group consisting of different business units. The group is adjusting its structure, which was created after the merger last summer due to the change in the overall economic situation. All administrative activities, including those of its sub-sidiaries, will be centralised in Hamburg. Streamlining the group structures will also entail a 40 percent reduction in the number of employees. AGIV will continue to hold on to its holdings, such as Deutsche Real Estate AG as well as to ADLER Real Estate AG, Mübau Real Estate GmbH, DIM Deutsche Immo- bilien Management GmbH and a number of other service companies. The profiles of its subsidiaries will be more focused. This change is in line with the group decision to increase and to extend its services also to third party and commission based fees earned through property developments, management and transactions, as well as in-vestments in property portfolios. Risks within the asset and project development portfolio are consistently being eliminated. This strategy is also a reaction to the continuing weakness in financial and in particular, in property markets. This policy will primarily affect Mübau assets. Ad-justments are expected to amount to approx. EUR 60 million. The company’s negative operating result, which was stated at a deficit of EUR 14.9 million at the third quarter of 2002, could not be improved, due to weakened markets and the fact that the expected increase in sales did not materialise during the fourth quarter. The company has not yet been able to realise considerable earnings opportunities, in particular arising from an intended transaction. The deal was delayed by uncer-tainties in the sales process concerning tax liabilities in connection with an announcement made by the Federal Government. In addition to the obvious adjustments and the operating result, the group’s annual deficit was affected by the effects of the merger. Based on currently available information, the groups joint deficit will be in the region of EUR 90 million. On the basis of its improved corporate structure, AGIV Real Estate exploits opportunities arising at present in anticyclical investments in real estate assets and intends to increase its sales from services, management and commission based transactions. At present, AGIV Groups assets under management amount to EUR 1,2 billion. Final announcement of the 2002 results are expected in June 2003. The general meeting will be held in Hamburg in August. In the event of any queries, please contact: german communications dbk AG Jörg Bretschneider Holzdamm 28-32, 20099 Hamburg Tel.: 040/46 88 33-0, Fax: 040/47 81 80 presse@german-communications.com end of ad-hoc-announcement (c)DGAP 03.04.2003 ——————————————————————————– WKN: 691132; ISIN: DE0006911324; Index: SDAX Listed: Amtlicher Markt in Frankfurt (Prime Standard) und Hamburg; Freiverkehr in Berlin-Bremen, Düsseldorf, München und Stuttgart 032011 Apr 03