11.02.2005 – 16:01

AIG International Real Estate GmbH&Co. KGaA

euro adhoc: AIG International Real Estate GmbH & Co. KGaA
other / Net Asset Value as of December 31, 2004

Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

11.02.2005

Frankfurt, February 11, 2005

Dear Ladies and Gentlemen

The unaudited net asset value ("NAV") of AIG International Real
Estate GmbH & Co. KGaA and its consolidated subsidiaries (the
"Group") as of December 31, 2004 reached an all-time high of EUR
30.42 per share, an increase in NAV of EUR 1.86 per share or 6.5%
from November 30, 2004.  NAV increased by 15% during 2004 and is now
above the initial offering price for the Company’s shares of EUR 29.

December’s increase in NAV was largely driven by the increased
valuation of the Group’s Japanese investments, particularly Forest
Green and Shinanen Canalside.  These valuations are based on
independent appraisals carried out in November and are supported by
the sale price for the Group’s Aozora investment in November.  Forest
Green and Shinanen Canalside have benefited from substantial
increases in occupancy levels, leading to an increase in the value of
the Group’s investments in these two properties by a combined EUR 6.4
million.

In addition, the valuation of the real estate held by the Group’s
Auto Priemyselny Park s.r.o. (APP) subsidiary in Slovakia increased
by EUR 1.1 million to EUR 58.4 million.  This valuation was derived
by an independent appraisal carried out in November and is based on
increased rental income and net operating income at the property.  In
addition to this increased valuation, which will be booked as income
in accordance with IFRS, APP generated EUR 4.8 million in net income
for the Group’s consolidated net income in 2004.  The total income
generated of EUR 5.9 million represents a one-year yield of 25% on
the Group’s EUR 23.7 million investment in APP.

The increase in NAV came despite a further drop by the US dollar and
the Japanese yen of about 2% each against the euro during December. 
The year-end exchange rates used by the Group were 1.3621 and 139.65
respectively for the USD and JPY.  The substantial recovery of the
USD and JPY in January of this year should further strengthen the
Group’s NAV as of January 31, 2005.

During December, the Group received additional distributions from its
Terrabrook investment in the US of approximately TUSD 967.  These
distributions were treated as return of capital.  We expect to
receive quarterly distributions from this investment during 2005,
with increasing amounts characterized as capital gains.

The Group made three new investments in December: TUSD 333 in Dulaney
Valley Apartments, a 900 unit residential development in Towson,
Maryland, USA; TUSD 67 as an initial investment in 418 West 25th
Street, the conversion of an industrial building in the Chelsea
section of New York City, USA, into condominiums; and an initial
investment of TEUR 6 in the development of an office building in
Moscow, Russia.  More details on the new investments will be included
in the Group’s fourth quarter report, which will be released in
February.  During December, the Group also made small additional
investments in St John’s Plantation (Jacksonville, Florida, USA),
Lomas de Arena (Palm Desert, California, USA) and Neptune Marina
(Marina del Rey, California, USA).

end of announcement                    euro adhoc 11.02.2005 15:22:36 

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
Index: SDAX, Prime Standard, CDAX, Classic All Share, Prime All Share
Börsen: Berliner Wertpapierbörse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Bayerische Börse / free trade
Bremer Wertpapierbörse (BWB) / free trade
Frankfurter Wertpapierbörse / official dealing