AIG International Real Estate GmbH&Co. KGaA
euro adhoc: AIG International Real Estate GmbH & Co. KGaA
other
Net Asset
Value as of December 31, 2005
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
08.03.2006
Frankfurt, March 8, 2006
Dear Ladies and Gentlemen:
The preliminary unaudited net asset value ("NAV") of AIG
International Real Estate GmbH & Co. KGaA (the "Company") and its
consolidated subsidiaries (together the "Group") as of December 31,
2005, was EUR 38.09 per share, an increase of EUR 2.41 per share or
6.8% over the November 30 NAV. Overall, NAV increased by 28% during
2005. Please note that the NAV stated above is preliminary and does
not include updated year-end valuations for the Groups investments
made through four AIG-managed collective investment funds with assets
in the United States, Europe, and Asia. Together, the Group holds
assets valued at approximately EUR 18 million through these four
funds, or about 12% of total real estate assets. We expect to have
year end reports on these funds within the next two weeks, and the
updated valuations will be included in the January NAV report. At
this point, we expect that the net valuation change from the four
funds will be positive. In addition, the figures on which this NAV
report is based have not yet been audited. During the audit process,
it is possible that certain adjustments may be made to valuations and
that the audited year end NAV will differ from the NAV reported
today.The increase in NAV during December was due to substantially increased valuations for our largest investments in Japan, especially Shinanen Canalside and Forest Green. These valuation increases are due to increases in lease rates for office space in Japan and are supported by independent appraisals.
During December, the Group sold two portfolios of medical office buildings from the three portfolios in the CHW investment in the United States. These two portfolios, purchased in February 2004, had a cost basis of USD 1.5 million (EUR 1.2 million) and generated total returns of USD 3.2 million (EUR 2.7 million), generating an IRR of 54% in USD (61% in EUR) and returning 2.1x capital invested (2.3x in EUR). The third medical office portfolio in CHW, which was purchased in June 2005, is still held at its cost of TUSD 665.
During December, the Group purchased an interest in Francisco Bay, an office complex on the Embarcadero in San Francisco, California, USA. The property consists of two low-rise office buildings, a restaurant and a parking garage. At the time of purchase, the office space was 55% leased. We intend to hold the property for several years and sell once it has been fully leased and existing leases have been rolled over at higher market rates.
The Group made additional investments totaling JPY 107 million (TEUR 755) through the AIG Japan Fund II in various properties in Japan. Additional details on these investments will be included in our quarterly and annual reports. The Group also made additional investments in Loudoun County, Neptune Marina, Lovejoy, and Lomas de Arena as development proceeds in all of these projects in the United States.
As has already been reported, the Company issued 143,884 additional shares during December at a price of EUR 34.75 per share, which was above market price at the time of issuance. The Company now has a total of 3,918,396 shares outstanding. This new total number of outstanding shares and the net proceeds from the issuance were included in the December 31 NAV calculation.
end of announcement euro adhoc 08.03.2006 16:42:55
Further inquiry note:
AIG International Real Estate GmbH & Co. KGaA
Daniel Huegin
Tel: +49 (0)69 97113225
E-Mail: daniel.huegin@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