AIG International Real Estate GmbH&Co. KGaA
euro adhoc: AIG International Real Estate GmbH & Co. KGaA
other
AIG
International Real Estate Net Asset Value Increases 4.7%
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
05.10.2006
Frankfurt, October 5, 2006
Dear Ladies and Gentlemen:
The unaudited net asset value ("NAV") of AIG International Real
Estate GmbH & Co. KGaA (the "Company") and its consolidated
subsidiaries (together the "Group") as of August 31, 2006 was EUR
40.88 per share, an increase of EUR 1.83 or 4.7% from the July 31
NAV of EUR 39.05. The substantial increase in NAV was due to
increased valuations received from independent appraisers for two of
the Company's portfolio investments.Due to the strong market for industrial properties in Slovakia, yields in the market have decreased, resulting in an increase in the real estate valuation of the Company's APP subsidiary (near Bratislava) from EUR 73.95 million to EUR 82.10 million, an increase of EUR 8.15 million or 11%. After booking a deferred tax liability of EUR 1.55 million (EUR 8.15 million multiplied by the 19% Slovak capital gains tax that would be paid on any sale of the real estate), the Company's NAV increased by EUR 6.6 million as a result of the new valuation for APP. In 2004, the Company entered into a forward purchase agreement for two additional buildings at the APP site. These buildings are completed and fully leased, and we expect to close on the purchase before the end of the year.
The valuation of the Company's investment in the Marques Avenue factory outlet shopping centers in France also increased substantially. Yields on factory outlet centers have decreased substantially as the centers have become better known among investors and as investors seek diversification from traditional retail properties where yields have fallen to the 4% range in Western Europe. The value of the Company's investment in Marques Avenue increased by approximately EUR 1 million.
end of announcement euro adhoc 05.10.2006 08:58:16
Further inquiry note:
AIG International Real Estate Gmbh & Co. KGaA
Conradin Schneider
Tel: +49 (0)69 97113225
E-Mail: conradin.schneider@aig-ire.de
Branche: Financial & Business Services
ISIN: DE0006344211
WKN: 634421
Index: CDAX, Classic All Share, Prime All Share
Börsen: Frankfurter Wertpapierbörse / official dealing/prime standard
Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Bayerische Börse / free trade