Not for distribution in the United States, Australia, Canada or Japan.

Hamburg, 10 February 2014 - The Management Board of TAG Immobilien AG ('TAG' or 'the Company' in the following) announces that it has increased the WKN A1TNFU/ ISINXS0954227210 corporate bond issued in August 2013 by another EUR 110 million through a private placement. The original volume of the bond, which matures in August 2018 and pays a coupon of 5.125% per year, was EUR 200 million. The bond is traded in the Open Market, the Entry Standard of the Frankfurt Stock Exchange, with participation in the Prime Standard for corporate bonds. The bond increase was issued at 103% of par value, which is about the current price of the bond.

The proceeds from the bond increase will primarily be used to further optimise the Company's capital and financing structure, and in particular to pay down higher interest-bearing bank loans without incurring prepayment penalties. The Board expects interest savings of a little over EUR 1 million per year, starting as early as Q2 2014.

Furthermore, the Company intends to use the net proceeds to finance TAG's continued growth and for other general business purposes.

Close Brothers Seydler Bank AG, Frankfurt am Main, is the sole global coordinator and sole bookrunner for the transaction / placement.

Disclaimer

This announcement is neither an offer to sell nor a call for offers to purchase securities of TAG Immobilien AG, and is no substitute for a securities prospectus. All of the securities issued as part of the increase have already been placed.

The securities referred to in this announcement may only be sold or offered for sale in the United States of America or for the account or benefit of U.S. persons by prior registration under the U.S. Securities Act of 1933, in its currently valid version (U.S. Securities Act) or only based on an exemption without prior registration.

Except from certain exemptions, the securities referred to in this announcement may not be sold or offered for sale in Australia, Canada or Japan, or for the account of Australian, Canadian or Japanese residents. The securities referred to in this announcement will not be registered in accordance with the U.S. Securities Act and/or the respective statutory provisions in Australia, Canada and Japan. There will be public offering of the securities in these countries.

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