23.06.2005 – 17:25

AIG International Real Estate GmbH&Co. KGaA

euro adhoc: AIG International Real Estate GmbH & Co. KGaA
other
Net Asset Value as of May 31, 2005

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

23.06.2005

Frankfurt, June 23, 2005

Dear Ladies and Gentlemen:

The unaudited net asset value ("NAV") of AIG International Real
Estate GmbH & Co. KGaA and its consolidated subsidiaries (together
the "Group") as of May 31, 2005 was EUR 32.27 per share, an increase
of over 2% or EUR 0.69 from the April, 2005 NAV.  So far this year,
NAV has increased by EUR 2.51 per share, or over 8%.

A significant portion of the increase in NAV was due to the
substantial strengthening of the US dollar and Japanese yen against
the euro during the month.  The dollar gained nearly five percent
against the euro in May and the yen gained about two percent.  These
currency changes result in higher euro valuations for our dollar and
yen denominated investments.  Also contributing to the rise in NAV
was the valuation of St. John’s Plantation in the United States Based
on the final sales price for this investment, we expect to receive
about USD 3.7 million (EUR 3 million) when the sale closes at the end
of June.  Performance details for this investment will be released
when the sale is completed, but, based on the sales price, the
investment will generate an IRR of well over 20% in USD terms.

During the month the Group received cash distributions from its
Japanese portfolio of JPY 58.3 million (TEUR 428), of which JPY 19.2
million (TEUR 141) represented distributed gains.

During May the Group made small follow on investments in the Neptune
Marina, Piney Point and Miramonte projects in the United States.
More substantial follow on investments were made in Brescia Retail
Center in Brescia, Italy (TEUR 522) and the Polish Retail Rollout
project (TEUR 112).

Havika Lofthaus-Development GmbH, the holding company for the Edison
Höfe project in Berlin, Germany, has lost a court case against the
developer of the project.  According to the decision, Havika is
required to pay the contractor TEUR 615 since phase two of the
project has not been commenced.  Although the decision is being
appealed, the shareholders of Havika, including the Group, have
posted guarantees to cover the potential payment of this claim.  The
Group’s share of the guarantee is TEUR 133.  As a precautionary
measure, the valuation of our investment in Edison Höfe has been
reduced by this amount.  (An additional lawsuit between Havika and
the developer is still pending.  Each side is claiming approximately
EUR 7 million in damages relating to the construction of phase one,
but it is not possible at this stage to draw any conclusions
regarding the outcome of the litigation.)  We have also somewhat
reduced the valuation of the remaining value of our investment in the
Repulse Bay Road and Peak Road project in Hong Kong due to continued
developments in discussions with the tax authorities regarding
potential withholding tax which might be levied on the remaining cash
in the project.

end of announcement                               euro adhoc 23.06.2005 16:48:16

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
Börsen: Berliner Wertpapierbörse
Baden-Württembergische Wertpapierbörse
Bayerische Börse
Bremer Wertpapierbörse (BWB)
Frankfurter Wertpapierbörse