AIRE GmbH & Co. KGaA

EANS-Adhoc: Change in NAV as of 31.12.2009

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AIRE GmbH & Co. KGaA: Change in NAV as of 31.12.2009

Frankfurt am Main, March 23, 2010 - The unaudited net  asset  value   ("NAV")  of AIRE  GmbH  &  Co.  KGaA  (the  "Company")  and  its   consolidated  subsidiaries (together the "Group") as of December 31, 2009  was  EUR  16.71  per  share,  a decrease of EUR 2.54 per share, or 13.2%, from the unaudited NAV  per  share  of EUR 19.25 reported as of November 30, 2009.

The reduction in NAV is primarily the result of  the  Group´s   determination  to mark the remaining development projects in the Group´s portfolio to the  current market value for the projects "as is", even if such  projects  are  still  under development.   Generally, and under IAS 40, real estate development projects  are reported at cost until sale or stabilization due to the  fact  that   the  market for projects under development is extremely limited and the clearing  price  for such projects is generally substantially   less  than  the  price  for  the  same project once completed.  Given the current dislocations in  global  real  estate markets, however, including the difficulty of obtaining or  extending  financing and uncertainty as to pricing and the ability to find tenants, Group   management has decided to report all development projects at the current liquidation  value even if development on the project is continuing and the Group expects that  the value of the completed project will be substantially  higher  than  the  current liquidation value.  This change in reporting affects five  development  projects that had been held at  cost:  McCadden,  Millenium  Apartments,   Sterling  SDSU, America  Center,  and  Pleasanton  Land.    In  two   cases  (America  Center  and Pleasanton Land), the current liquidation value of the  projects  is  less  than the outstanding debt, resulting in a zero equity valuation.  In the other  three cases, the Group´s equity valuations are positive, but below  cost.   The  Group and its advisor will continue to value all five projects on  a  quarterly  basis and will increase valuations to  the  extent that  continued  development  work and/or leasing efforts result in increased market  values  for  the  properties. In all five cases, market valuations as of December 31, 2009 were determined  by independent valuation firms.

Following this change in reporting, all of the Group´s investments are  reported at current fair market value.

During December, the Group sold its interest in the Loudoun  County   development project in Virginia, USA for TUSD 516, generating a realized loss of TUSD 1361.

The appraised valuation for the Company´s APP investment in  Slovakia increased slightly to EUR 78.5 million from the 2008 valuation of EUR 77.8  million.    The increased valuation reflects some stabilization in the  Slovak  industrial  real estate market, but also successful   efforts  by  the  Group  to  extend  current tenant leases and to maintain full occupancy at APP.  In addition,  the  Company has had positive talks with the mortgage lender to APP regarding  the  loan   to value  covenant  under APP´s mortgage loans.  Any resolution to these discussions will be  reported  if and when it is formalized.

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

Share Data: WKN: 634421 ISIN: DE0006344211 Stockmarkets: official dealing/prime standard: Frankfurter Wertpapierbörse free trade: Berliner Wertpapierbörse, Baden-Württembergische Wertpapierbörse, Bayerische Börse, Bremer Wertpapierbörse (BWB)

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ots Originaltext: AIRE GmbH & Co. KGaA
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Further inquiry note:
AIRE 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:  Frankfurt / regulated dealing/prime standard
              Berlin / free trade
              Hamburg / free trade
              Stuttgart / free trade
              Düsseldorf / free trade
              München / free trade

Weitere Meldungen: AIRE GmbH & Co. KGaA

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