AIG International Real Estate GmbH&Co. KGaA
euro adhoc: AIG International Real Estate GmbH & Co. KGaA
other
Net Asset
Value as of December 31, 2006
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Net Asset Value Update
19.02.2007
Frankfurt, February 19, 2007
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, 2006 was EUR 42.64 per share, an increase of EUR 1.53 or
3.7% from the November 30 NAV of EUR 41.11 per share. On an
unaudited basis, NAV per share increased EUR 4.01 or 10.4% from
the audited NAV per share of EUR 38.63 as of December 31, 2005.Please note that we are still in the process of completing year-end valuations and that we have not yet begun the audit review process. Therefore, the year- end audited NAV to be published in our annual report may differ from the NAV communicated in this flyer.
The increase in NAV during December was primarily due to the increased valuations for the Group's four largest investments in Japan (Shinanen Canalside, Forest Green, Oyamacho and Chayamachi) based on valuations conducted by independent appraisers. The combined valuation increase for these four investments was about EUR 6.5 million, which is net of the negative effect on valuation caused by the sharp weakening of the Japanese yen during the month.
NAV growth also came from the increased valuation for the Group's investment in Metropole, the retail redevelopment in Copenhagen, Denmark. As is generally true with development projects, the Group held this development at cost during the development phase. Now that the redevelopment is substantially complete and leased up, there is strong interest in the project from potential purchasers. Based on the estimated potential sales value of Metropole, the Company increased the valuation of its investment by EUR 1.5 million.
During December, the Company effected a small capital increase of EUR 9 million, issuing 222,184 new shares at a price of EUR 40.50 per share (at a premium to the then-prevailing market price). These new shares were registered and accepted for trading on December 29. As of year end, the Company had 4,140,580 shares outstanding and a market capitalization of over EUR 166 million.
The Group was extremely active on the investment front during December, with over EUR 30 million in new investments. Of this amount, EUR 28 million was invested in the Tasman Portfolio, which consists of 99 office properties located throughout the Netherlands. The Group invested EUR 26 million directly in Tasman for a 32.5% interest and an additional EUR 2 million indirectly through the AIG European Real Estate Fund. The Group also invested EUR 1 million through the European fund in the Airport Centre, an office building located at the Luxembourg airport. Finally, the Group invested an additional JPY 122 million (TEUR 800) in its Japanese property portfolio held through AIG Japan Fund II.
On the distribution side, the Group received a USD 1.2 million (TEUR 900) from its Terrabrook investment. During the fourth quarter, the Group received a total of EUR 1.4 million from Terrabrook, representing nearly 25% of the September 30 valuation for Terrabrook.
The Group ended the year with EUR 250 million in assets, an increase of 25% during the year. A portion of the Group's new investments were financed by EUR 15 million in short-term financing provided by Landesbank Baden-Württemburg (EUR 10 million) and AIG Private Bank Ltd. (EUR 5 million). The Group is currently in the process of finalizing a refinancing of the mortgage on the APP industrial park in Slovakia and expects to receive an additional EUR 16 million in long-term financing from this source in the coming weeks. It is anticipated that the short-term financing from LBBW and AIG Private Bank will be repaid during the first half of 2007.
end of announcement euro adhoc 19.02.2007 15:10:44
Further inquiry note:
AIG International Real Estate Gmbh & Co. KGaA
Conradin Schneider
Telefon: +49(0)69 97 11 32 25
E-Mail: conradin.schneider@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