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DGAP-Ad-hoc: PATRIZIA Immobilien AG: PATRIZIA Immobilien AG generates preliminary post-tax profit of EUR 46.5

PATRIZIA Immobilien AG (ISIN DE000PAT1AG3) has recognized a write-up to fair value in the amount of EUR 66.3 million on a portion of its real estate portfolio.

Under the terms of the syndication of real estate finance, the financing bank required that an assessment of the fair value of a portion of the relevant portfolios be prepared by a neutral, internationally recognized appraiser. This conservative appraisal led to a higher valuation of this sub-portfolio, meaning that we were required to recognize a write-up to fair value in the amount of EUR 66.3 million in accordance with the applicable IFRS accounting principles. The higher fair value serves to underline the fact that our real estate portfolio consists of high-quality properties at attractive locations in
Germany.

In the third quarter of 2007, a total of 123 individual residential units were sold privately. This resale figure failed to meet the expectations of the market or our own targets. Delays in the start of the sales process for our portfolios meant that the individual resale of the majority of the higher-priced units in Munich and Cologne only commenced in September 2007.
This situation was caused by delays in the legal separation of real estate, the late delivery of documents by the previous administration of the seller, and delays resulting from our own growth. Since our IPO on March 31, 2006, our real estate holdings have increased tenfold and our workforce has grown by more than 35%. The coordination and integration measures that we have been required to implement as a result of this development have taken longer than we anticipated at the start of 2007.

We have now completed these internal integration activities, and individual sales in Cologne and Munich have begun. However, we do not expect the revenue from these portfolios to be realized to a significant extent until the 2008 financial year. The private sale of residential real estate in Germany has the potential for success if the corresponding properties are
situated at attractive locations and are of a sufficiently high quality. Based on this assessment and the value growth of our real estate holdings, we are increasing our forecast net profit for the 2007 financial year from EUR 45 million to EUR 48 million. The preliminary revenues for the first nine months of 2007 amounted to around EUR 99.8 million. After adjustment for all expense items and the write-up to fair value of a portion of our real estate portfolio, EBIT for the first nine months is expected to total EUR 100.6 million.

The full interim report for the third quarter of 2007 and the finalized interim financial statements will be published on November 7, 2007, on which date they will also be made available here.

The Management Board
Augsburg, October 31, 2007
 

PATRIZIA Immobilien AG
PATRIZIA Bürohaus
Fuggerstrasse 26
86150 Augsburg 
Germany

Listing:  Frankfurt Official Market (Prime Standard)
ISIN:  DE000PAT1AG3
SIN:  PAT1AG

Contact:
Investor Relations    
Claudia Kellert

Phone:+49 (0) 821 5 09 10-360 
Fax:+49 (0) 821 5 09 10-399 

investor.relations@patrizia.ag  

Press
Andreas Menke

Phone:+49 (0) 821 5 09 10-655
Fax+49 (0) 821 5 09 10-695

presse@patrizia.ag

Financial News transmitted by DGAP

Language:English
Issuer:PATRIZIA Immobilien AG
 Fuggerstraße 26
 86150 Augsburg
 Germany
Phone:+49 (0)821 - 509 10-000
Fax:+49 (0)821 - 509 10-999
E-Mail:investor.relations@patrizia.ag
Internet:www.patrizia.ag
ISIN:DE000PAT1AG3
WKN:PAT1AG
Indices:SDAX
Listed:Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, München, Hamburg, Düsseldorf, Stuttgart

Ende of News - DGAP News-Service

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