AIG International Real Estate GmbH&Co. KGaA
euro adhoc: AIG International Real Estate GmbH & Co. KGaA
other
Net Asset
Value as of May 31, 2005
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
23.06.2005
Frankfurt, June 23, 2005
Dear Ladies and Gentlemen:
The unaudited net asset value ("NAV") of AIG International Real
Estate GmbH & Co. KGaA and its consolidated subsidiaries (together
the "Group") as of May 31, 2005 was EUR 32.27 per share, an increase
of over 2% or EUR 0.69 from the April, 2005 NAV. So far this year,
NAV has increased by EUR 2.51 per share, or over 8%.A significant portion of the increase in NAV was due to the substantial strengthening of the US dollar and Japanese yen against the euro during the month. The dollar gained nearly five percent against the euro in May and the yen gained about two percent. These currency changes result in higher euro valuations for our dollar and yen denominated investments. Also contributing to the rise in NAV was the valuation of St. Johns Plantation in the United States Based on the final sales price for this investment, we expect to receive about USD 3.7 million (EUR 3 million) when the sale closes at the end of June. Performance details for this investment will be released when the sale is completed, but, based on the sales price, the investment will generate an IRR of well over 20% in USD terms.
During the month the Group received cash distributions from its Japanese portfolio of JPY 58.3 million (TEUR 428), of which JPY 19.2 million (TEUR 141) represented distributed gains.
During May the Group made small follow on investments in the Neptune Marina, Piney Point and Miramonte projects in the United States. More substantial follow on investments were made in Brescia Retail Center in Brescia, Italy (TEUR 522) and the Polish Retail Rollout project (TEUR 112).
Havika Lofthaus-Development GmbH, the holding company for the Edison Höfe project in Berlin, Germany, has lost a court case against the developer of the project. According to the decision, Havika is required to pay the contractor TEUR 615 since phase two of the project has not been commenced. Although the decision is being appealed, the shareholders of Havika, including the Group, have posted guarantees to cover the potential payment of this claim. The Groups share of the guarantee is TEUR 133. As a precautionary measure, the valuation of our investment in Edison Höfe has been reduced by this amount. (An additional lawsuit between Havika and the developer is still pending. Each side is claiming approximately EUR 7 million in damages relating to the construction of phase one, but it is not possible at this stage to draw any conclusions regarding the outcome of the litigation.) We have also somewhat reduced the valuation of the remaining value of our investment in the Repulse Bay Road and Peak Road project in Hong Kong due to continued developments in discussions with the tax authorities regarding potential withholding tax which might be levied on the remaining cash in the project.
end of announcement euro adhoc 23.06.2005 16:48:16
Further inquiry note:
AIG International Real Estate Gmbh & Co. KGaA
Andrew Fletcher
Tel: +49 (0)69 97113225
E-Mail: andrew.fletcher@aig-ire.de
Branche: Financial & Business Services
ISIN: DE0006344211
WKN: 634421
Börsen: Berliner Wertpapierbörse
Baden-Württembergische Wertpapierbörse
Bayerische Börse
Bremer Wertpapierbörse (BWB)
Frankfurter Wertpapierbörse