EANS-News: GSW Immobilien AG plans listing on 15 April 2011

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Financing, Stock Offerings (IPO)

Berlin (euro adhoc) - GSW Immobilien AG plans listing on 15 April
2011

* Price range for offered shares set at EUR 19 to EUR 23 * Offer
period commences on 1 April 2011 and is scheduled to end on 13 April
2011 * Expected gross proceeds for the Company of approximately EUR
115 million * Shares fully entitled to dividend payments for the
fiscal year 2011

Berlin, 31 March 2011 - GSW Immobilien AG ("GSW" or "Company"), the
leading private residential property company in Berlin, has
determined the general terms and conditions for its planned share
offering in co-operation with the selling shareholders and syndicate
banks. The price range for the offered shares has been set at EUR 19
to EUR 23. The period during which interested investors can subscribe
shares starts on 1April and is scheduled to end on 13 April 2011. The
shares are expected to start trading in the Regulated Market (Prime
Standard) of the Frankfurt Stock Exchange and the Regulated Market of
the Berlin Stock Exchange on 15 April 2011.

The offering includes a public offering in Germany and Luxembourg and
private placements to institutional investors outside of Germany and
Luxembourg. In total, the offer consists of 21,402,630 shares (prior
to the overallotment). Up to 6,052,630 new shares will be offered
from a capital increase, which will generate expected gross proceeds
of approximately EUR 115 million for the Company. The exact number of
new shares to be offered by the Company will be determined at the end
of the offer period depending on the placement price. Up to
16,402,630 existing shares will be offered from the holdings of the
selling shareholders. The exact number of existing shares to be
offered by the selling shareholders will be the difference between
the aggregate of 21,402,630 shares to be allocated and the new shares
offered by the Company to be placed depending at the final issuance
price. Further, the offer comprises up to 3,210,394 additional
existing shares from the selling shareholders to cover a potential
over-allotment option. After the execution of the offer and prior to
the over-allotment, the selling shareholders are expected to hold
less than 50 percent of the outstanding shares of the Company. The
total issue volume including the expected capital increase of
approximately EUR 115 million could amount to approximately EUR 517
million if all existing shares offered and the shares from a
potential over-allotment option are placed at the midpoint of the
price range. The selling shareholders have agreed to a lock-up period
of six months after the start of trading in the shares.

Thomas Zinnöcker, CEO of GSW: "Our solid business model was resilient
to the difficult market environment in the last years. We sustainably
increased GSW's profitability and efficiency. With our leading
corporate platform, we operate in one of the most interesting
residential property markets in Europe. The planned IPO will provide
us with permanent access to equity financing, enabling us to realise
our planned growth. Further, we have long-term financing in place at
attractive conditions. We therefore are largely unaffected by
potential interest rate movements over the next years."

Plans for additional growth from the acquisition of residential units
in Berlin Together with the current cash holdings, the expected net
proceeds from the IPO will significantly enhance GSW's financial
flexibility for future acquisitions. The Company plans to selectively
acquire 5,000 to 6,000 residential units over the next two years, in
the attractive Berlin residential property market. The remaining net
proceeds from the sale of the new shares will serve general corporate
purposes and strengthen GSW's capital base. In addition, the Company
intends to use EUR 40.1 million from existing cash to repay the
remaining tax liabilities from GSW's former status as tax-exempt
housing Company.

Thomas Zinnöcker, CEO of GSW: "We aim to combine growth with
attractive dividend payments. We plan to distribute dividends
amounting to approximately 65 percent of the funds from operations
(FFO). The offered shares will carry full dividend entitlements for
the fiscal year 2011."

Successful and efficient business model GSW is one of the largest
private residential property firms in Berlin as measured by the
number of owned apartments and the number of apartments managed for
third parties. The Company owns a portfolio with approximately 48,800
residential units and also manages approximately 15,800 residential
and commercial property units for third parties. With a clear focus
on Berlin, GSW operates in one of the largest and most attractive
residential property markets in Germany. For a number of years, the
Berlin residential property market has been characterised by a
growing population, declining vacancy rates, increasing rents and a
younger population compared to other German cities. The GSW business
model has been designed to benefit in the long run from these
demographic trends and economic factors. GSW actively manages its
portfolio to consistently increase returns. This includes selected
purchases and sales of residential units or properties as well as
appropriate value-enhancing maintenance and refurbishment measures.
In addition, GSW focuses specifically on tenant requirements in order
to further increase tenant satisfaction and, through this, to reduce
vacancies as well as costs from tenant changes. This supports
consistent rental income growth. Between 2006 and 2010, the net
monthly in-place rent in the GSW portfolio grew on a like-for-like
basis to an average of EUR 4.89 per square metre and month. At the
same time, the Company was able to reduce the apartment vacancies to
3.6 percent. Through its efficient operational platform, GSW is able
to integrate new residential units in its portfolio without
meaningfully increasing administration costs.

Mutual cooperation in Berlin As a company with a long-standing
history in Berlin, GSW is aware of its responsibility for the city
and its inhabitants and places great value on cooperating in a spirit
of partnership with tenants and the city of Berlin. In doing so, GSW
is, for example, supporting numerous neighbourhood activities and
social services, offering special residential products aiming at
different situations in a tenants' life and regularly conducting
client surveys. This partnership is also reflected in the fact that
representatives of the federal state of Berlin sit both on the
supervisory board of GSW and in the implementation committee.

Additional details on the offer Deutsche Bank and Goldman Sachs
International are Joint Global Coordinators and Joint Bookrunners.
Berenberg Bank, Commerzbank, HSBC, Kempen & Co and UniCredit have
been mandated as Co-Lead Managers. Interested investors can submit
their purchase offers to the branches of the syndicate banks from the
beginning of the offer period on 1 April 2011 until the end of the
offer period, which is currently scheduled for 13 April 2011. The
offer period is scheduled to end on 13 April 2011 at 12:00 noon CEST
for private investors and at 17:00 CEST for institutional investors.
GSW expects to communicate the final issuance price of the shares on
13 April 2011 in an ad hoc statement. The shares are expected to
start trading in the Regulated Market (Prime Standard) of the
Frankfurt Stock Exchange and in the Regulated Market of the Berlin
Stock Exchange on 15 April 2011 under the stock symbol GIB. The
international securities identification number (ISIN) of GSW will be
DE000GSW1111 and the German security code number (WKN) will be
GSW111.

The prospectus of GSW has been approved by the German Federal
Financial Supervisory Authority (BaFin) on 31 March 2011 and been
notified to the competent authority (Commission de Surveillance du
Secteur Financier, the "CSSF") in Luxembourg. The prospectus of GSW
Immobilien AG is available from the Company's homepage
({www.gsw.de}[HYPERLINK: http://www.gsw.de]) for downloading and can
also be obtained free of charge from the Company's registered office
in Charlottenstraße 4, 10969 Berlin during regular business hours.

Key IPO data at a glance First day of trading 15 April 2011
Subscription period 1 - 13 April 2011 Price range EUR 19 to EUR 23
Issuance volume Approximately EUR 517 million (if greenshoe option is
fully exercised, based on the midpoint of the price range) Capital
increase Gross issuance proceeds of approximately EUR 115 million
Type of issue Public offering of shares in Germany and Luxembourg as
well as private placements outside of Germany and Luxembourg Stock
exchanges Frankfurt stock exchange (prime standard) and Berlin stock
exchange ISIN DE000GSW1111 WKN GSW111 Syndicate banks Deutsche Bank
and Goldman Sachs International (Joint Bookrunners) and Berenberg
Bank, Commerzbank, HSBC, Kempen & Co and UniCredit (Co-Lead Managers)
Lock-up 6 months for selling shareholders 12 months for members of
the management board

Media Relations
Thomas Rücker
GSW Immobilien AG
Charlottenstrasse 4
10969 Berlin, Germany

Tel: +49-30-25 34 13 32
Fax: +49-30-25 34 19 34
E-mail: {thomas.ruecker@gsw.de}[HYPERLINK: mailto:thomas.ruecker@gsw.de]

Investor Relations
Sebastian Jacob
GSW Immobilien AG
Charlottenstrasse 4
10969 Berlin, Germany

Tel: +49-30-25 34 18 82
Fax: +49-30-25 34 19 09
E-Mail: sebastian.jacob@gsw.de

About GSW GSW Immobilien AG is a leading privately-owned residential
real estate company operating in Berlin, with an owned portfolio of
approximately 48,800 apartments and 3.0 million square meters of
residential floor space. In addition, a subsidiary of GSW manages
approximately 15,800 residential units for third parties. GSW's
strategy focuses on the long-term rental management of residential
property via a systematic approach, which aims to increase customer
satisfaction and operational efficiency. The Company was founded in
1924, and was acquired in 2004 from the State of Berlin by holding
companies of Cerberus Capital Management, L.P. and the Whitehall
Funds. GSW employed approximately 597 employees on average in 2010.
As of December 31, 2010, the Company's property portfolio was valued
at approximately EUR 2.6 billion.

Disclaimer This press release does not contain or constitute an offer
of, or the solicitation of an offer to buy or subscribe for,
securities to any person in Australia, Canada, Japan, or the United
States or in any jurisdiction to whom or in which such offer or
solicitation is unlawful. The securities referred to herein may not
be offered or sold in the United States absent registration under the
U.S. Securities Act of 1933, as amended (the "Securities Act") or
another exemption from, or in a transaction not subject to, the
registration requirements of the Securities Act. Subject to certain
exceptions, the securities referred to herein may not be offered or
sold in Australia, Canada or Japan or to, or for the account or
benefit of, any national, resident or citizen of Australia, Canada or
Japan. The offer and sale of the securities referred to herein has
not been and will not be registered under the Securities Act or under
the applicable securities laws of Australia, Canada or Japan. There
will be no public offer of the securities in the United States.

This press release is directed at and/or for distribution in the
United Kingdom only to (i) persons who have professional experience
in matters relating to investments falling within article 19(5) of
the Financial Services and Markets Act 2000 (Financial Promotion)
Order 2005 (the "Order") or (ii) high net worth entities falling
within article 49(2) (a) to (d) of the Order (all such persons are
referred to herein as "relevant persons"). This press release is
directed only at relevant persons. Any person who is not a relevant
person should not act or rely on this press release or any of its
contents. Any investment or investment activity to which this press
release relates is available only for relevant persons and will be
engaged in only with relevant persons.

This press release is an advertisement and not a prospectus.
Investors should not purchase or subscribe for any shares referred to
in this press release except on the basis of information in the
prospectus to be issued by the Company in connection with the
offering of such shares. Copies of the prospectus will, following
approval by the German Financial Supervisory Authority (BaFin) and
publication, be available free of charge from GSW Immobilien AG,
Charlottenstrasse 4, D-10969 Berlin, Germany, or on GSW Immobilien
AG's website (www.gsw.de).

end of announcement euro adhoc
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ots Originaltext: GSW Immobilien AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Sebastian Jacob
Tel.: +49 30 25 34- 18 82
E-Mail: sebastian.jacob@gsw.de

Branche: Real Estate
ISIN: DE000GSW1111
WKN: GSW111
Börsen: Frankfurt / regulated dealing/prime standard
Berlin / regulated dealing