EANS-News: GSW Immobilien AG purchases property portfolio with around 4,800 apartments in Berlin

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Company Information/Acquisition

Berlin (euro adhoc) - GSW purchases property portfolio with around
4,800 apartments in Berlin

• Attractive addition to the existing housing stock
• Acquisition targets from the IPO fulfilled early
• Financing achieved with 34% equity

Berlin, 2 November 2011 - GSW Immobilien AG has acquired a property
portfolio comprising roughly 4,800 apartments from a subsidiary of
GAGFAH S.A. The purchase price for the portfolio, which is
predominantly based in good residential locations in Berlin, is
approximately EUR330 million.

"The newly acquired portfolio makes an attractive addition to our
existing housing stock. Its positive effect is that it increases the
average rent in our overall portfolio and the additions expand our
previous location focuses in Berlin in an optimal way," comments Jörg
Schwagenscheidt, Management Board member of the MDAX-listed property
company and responsible for acquisitions. "We are delighted that our
promise to invest the EUR115 million from the IPO by the end of next
year has therefore been fulfilled early," adds Schwagenscheidt.

The majority of the roughly 4,800 apartments are located in good to
medium locations in Kreuzberg (35%), in Zehlendorf, Charlottenburg
and Potsdam (approximately 39%), and in Spandau (26%). Roughly
two-thirds of the buildings were constructed in the 1960s, with the
others originating from the 1920s (18%) and 1950s (18%).

"The housing stock, most of which has been owned by GAGFAH only since
2007, has been well maintained," continues Jörg Schwagenscheidt. The
quality of the portfolio is also reflected in the figures: the
average actual rent across all apartments is currently around EUR5.58
per square meter per month, with a vacancy rate of just 2.8%. "This
means that the average rent is higher than the Berlin rent index
average of EUR5.21 per square meter per month," explains
Schwagenscheidt. In the first half of the year (as of 30-Jun-2011),
net cold rent of GSW´s housing portfolio averaged EUR4.94 per square
meter.

These key data also have an impact on GSW´s overall result. "We
expect the current new acquisition to make a long-term positive
contribution to our results," forecasts Schwagenscheidt.

GSW also negotiated the financing for the new housing portfolio with
the relevant banks at satisfactory conditions. Equity accounts for a
share of around 34%.

Contact
GSW Immobilien AG
Charlottenstrasse 4, 10969 Berlin, Germany

Press Investor Relations
Thomas Rücker Sebastian Jacob
e-mail: thomas.ruecker@gsw.de e-mail:
sebastian.jacob@gsw.de
Tel.: +49. (0) 30. 25 34-13 32 Tel.: +49. (0) 30. 25 34-18
82
Fax: +49. (0) 30. 25 34-19 34 Fax: +49. (0) 30. 25 34-19
09

About GSW

Founded in 1924, GSW Immobilien AG is a leading private residential
property company in Berlin with a portfolio of around 48,600
residential units and total residential space of 3.0 million m². A
subsidiary of GSW also manages around 16,500 residential and
commercial units for third parties. GSW´s corporate strategy is
geared towards the long-term management of rented apartments, using a
systematic approach intended to enhance customer satisfaction and
operational efficiency. As at 31 December 2010, the company´s
property portfolio was valued at around EUR2.6 billion.

Further inquiry note:
René Bergmann
Tel.: +49 30 2534 1362
Fax: +49 30 2534 1909
E-Mail: rene.bergmann@gsw.de

end of announcement euro adhoc
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company: GSW Immobilien AG
Charlottenstr. 4
D-10969 Berlin
phone: +49 30 68 99 99 0
FAX: +49 30 68 99 99 999
mail: kundenservice@gsw.de
WWW: http://www.gsw.de
sector: Real Estate
ISIN: DE000GSW1111
indexes: MDAX
stockmarkets: regulated dealing/prime standard: Frankfurt, regulated dealing:
Berlin
language: English