AIG International Real Estate GmbH&Co. KGaA
euro adhoc: AIG International Real Estate GmbH & Co. KGaA
other
Net Asset
Value as of March 31, 2007
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Net Asset Value Update
15.05.2007
Frankfurt am Main, May 15, 2007
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 March 31, 2007 was EUR
44.79 per share, an increase of EUR 1.22 or 2.8% from the unaudited
February 28, 2007 NAV of EUR 43.57 per share. NAV per share
increased more than 3% during the first quarter from the audited
year end NAV per share of EUR 43.38.The increased NAV is due primarily to increased valuations for a number of investments in Europe and Asia. In Europe, the Marques Avenue locations in France held through the AIG Europe fund were placed under contract for sale at a price well in excess of our year end valuation. As a result, we have increased the valuation of our interest in asset by about EUR 2 million to reflect the sales price. The sale is expected to close in June or July and will result in cash distributions to the Group of approximately EUR 5 million. In addition, the valuation of the FM Logistics warehouse facility near Moscow, Russia to reflect compressed yields in the local market.
The Kyobashi Land investment in Japan was also sold. This investment was held for slightly more than one year and returned nearly two times invested capital, resulting in a before-tax JPY IRR of approximately 77% (EUR IRR approximately 57%). Net of Japanese withholding tax, the multiple was 1.75x in JPY, with an IRR of approximately 63% (EUR after tax IRR of 44%). Also in Asia, the valuations for the Group's four largest investments in Japan (Shinanen Canalside, Forest Green, Chayamachi, and Oyamacho) were increased based on regular quarterly reporting from the investments.
The Group received substantial distributions from two investments in the US. Another building in the Baldwin Park industrial park was sold, generating cash proceeds of TUSD 515 (TEUR 389), of which TUSD 210 (TEUR 158) was characterized as capital gain. (Another Baldwin Park building was sold in April.) Sales valuations at Baldwin Park have been consistent with the Group's valuation for the investment. The Group received a TUSD 958 (TEUR 718) return of capital distribution from its Trivest investment as a result of the refinancing of one of the properties in the Trivest portfolio.
The Tasman Portfolio of office properties in the Netherlands generated net income for the Group of TEUR 651 for the period from acquisition on December 20, 2006 through March 31, 2007. The Group accounts for its investment in Tasman using the equity method, so this income has been booked in the Group's consolidated income statement, leading to an increase in the valuation of the Group's investment in Tasman.
The Group made two new investments in the United States during the month. One World Trade Center, an existing Class-A office property in Long Beach, California with about 54,000 square meters of rentable space. The Group HAS invested USD 1.2 million (TEUR 905) in this project. The Group also committed to invest USD 1.7 million in The Verandas, an existing Class-B residential property in West Covina, California. The Group made an initial investment of TUSD 38 (TEUR 28) in The Verandas and made additional investments of USD 1.2 million (TEUR 875) during April. During March, the Group also made additional investments in Japanese real estate totaling JPY 134 million (TEUR 854) through AIG Japan Fund II and AIG Japan Fund III. As of the end of March, the Group had twenty-five investments through AIG Japan Fund II and three investments through AIG Japan Fund III.
end of announcement euro adhoc 15.05.2007 15:02:23
Further inquiry note:
AIG International Real Estate Gmbh & Co. KGaA
Nicole Gauchat
Telefon: +49(0)69 97 11 32 25
E-Mail: nicole.gauchat@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