AIG International Real Estate GmbH&Co. KGaA

euro adhoc: AIG International Real Estate GmbH & Co. KGaA
AIG International Real Estate GmbH & Co. KGaA: Announcement of estimated preliminary net asset value (NAV) as of December 31, 2007

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AIG International Real  Estate  GmbH  &  Co.  KGaA:  Announcement  of estimated preliminary net asset value (NAV) as of December 31, 2007

Frankfurt am Main, February 26, 2008 - AIG International Real Estate GmbH & Co. KGaA (the "Company") announced an estimated preliminary net asset value (NAV) per share as of December 31, 2007 of EUR 43.82. This represents a drop of EUR 2.70 per share or, approximately 5.8% from the NAV per share as of November 30, 2007 of EUR 46.52.  Based on this preliminary estimated net NAV, the Company's NAV per share increased slightly during 2007 (from EUR 43.38 as of December 31, 2006.)  This preliminary estimated NAV includes substantially all year end real estate valuations, but may be adjusted in coming weeks as additional financial reporting is received from individual investments. Preliminary year end unaudited NAV is expected to be published before the end of February.

"The drop in NAV was entirely due to a valuation adjustment for the Company's Tasman portfolio investment in the Netherlands said Andrew Fletcher, managing director of the Company." "In fact, net valuation changes for the rest of the Company's portfolio in Europe, Asia and North America would have resulted in an NAV increase of approximately 5% absent the effect of the Tasman valuation. The Tasman valuation adjustment resulted from the change of the valuation methodology from "at cost" to "fair value".  The Tasman portfolio was valued by independent appraisers as of December 31, 2007.  This was the first appraisal since the purchase of the portfolio on December 20, 2006.   In connection with this valuation, the transaction costs that were capitalized at the time of the purchase were recognized as expenses in the income statement.  Due to the high level of leverage employed on the Tasman portfolio, the recognition of these costs resulted in a significant reduction in the value of the Company's equity investment in Tasman.

We expect the reported valuation of the Tasman investment to recover over the course of the year 2008 as the result of increased occupancy levels and sales of selected buildings from the portfolio at prices we would expect, based on the current market and recent transactions, to be above the currently reported appraised values for the portfolio."

"Despite the lower valuations indicated in the appraisal report, the office market in the Netherlands actually strengthened somewhat during 2007, with yields decreasing slightly.  In addition, the recent sale of a portfolio of office properties in the Netherlands indicates that it is possible to achieve prices in the current market that are in excess of the appraised values reported for Tasman. In 2008, the Company and its co-investors will focus on increasing occupancy levels in the Tasman portfolio (currently around 83%, and essentially unchanged since purchase a year ago) and selling select buildings from the portfolio at prices above appraised values.  Due to the high leverage in the Tasman structure, even small successes in lease up efforts or portfolio sales would have a substantial positive effect on the Company's reported valuation for Tasman."

"The rest of the Company's portfolio performed extremely well, with net valuation increases from all regions: valuations for Europe ex Tasman increased by approximately EUR 3.2 million, valuations for North America increased by approximately EUR 2.9 million, and valuations for Asia increased by approximately EUR 6.8 million.   Total valuation increases other than Tasman totaled approximately EUR 12.9 million, or about 6.6% of the reported November NAV."

Contact: AIG International Real Estate GmbH & Co. KGaA Andrew Fletcher Phone: +49 (0)69 9711 3225 E-Mail:

Share Data:
WKN:            634421
ISIN:          DE0006344211

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                                    free trade: Berliner Wertpapierbörse, Baden-
Württembergische Wertpapierbörse,                  Bayerische Börse, Bremer@@end@@

Wertpapierbörse (BWB)

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ots Originaltext: AIG International Real Estate GmbH&Co. KGaA
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Further inquiry note:
AIG International Real Estate Gmbh & Co. KGaA
Nicole Gauchat
Telefon: +49(0)69 97 11 32 25

Branche: Financial & Business Services
ISIN:      DE0006344211
WKN:        634421
Index:    CDAX, Classic All Share, Prime All Share
Börsen:  Börse Frankfurt / regulated dealing/prime standard
              Börse Berlin / free trade
              Börse Stuttgart / free trade
              Börse München / free trade

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