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Adler Real Estate AG: ADLER Real Estate AG expands asset management activities

Adler Real Estate AG / Miscellaneous

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ADLER Real Estate AG expands asset management activities

  - Investment volume under management about EUR 200 million 

  - Foundations laid for growth in operations

  - Not affected by the US subprime lending crisis 

  - Stock considerably undervalued


Hamburg, February 21, 2008 ADLER Real Estate AG, Hamburg, is consistently
expanding its asset management unit. Investment volume under management is
already around EUR 200 million. 'This gives us a good foundation for the
further expansion of this unit' says Management Board Member Axel Harloff.
'In the near time, we aim to expand our investment volume to 500 million
EUR.' In addition to asset management, the Company also maintains a
property management business. 'Due to these activities and our work in
various real estate development projects, we have not been affected by the
US mortgage crisis' stresses Harloff. 'As a result, it is incomprehensible
to our shareholders and to us why our stock is so undervalued at the
moment.' Based on earnings for the first nine months of 2007, the stock
currently has a price-earnings (PE) ratio of just 2 to 2.5.

This valuation does not take into account the expansion of the Company's
asset management and property management businesses, which provide a steady
stream of income for ADLER Real Estate AG, in addition to participating in
the appreciation of the properties through the frequent acquisition of
minority stakes. 'This makes us stronger and, at the same time, less
dependent on the performance of the real estate development business' says
Management Board Member Barbara Yaltrak. In expanding its asset management
business, ADLER has taken advantage of the many years of experience and the
extensive connections of its management team and employees. 'We offer the
full value chain, as well as ideal access to the German real estate market,
especially for international clients' continues Yaltrak.

To this end, ADLER has concluded two agreements with AIG Global Real Estate
Investment (Europe) Ltd., a subsidiary of the world's leading insurance
company, American International Group, Inc. ADLER assumed management of two
portfolios with a total value of EUR 136 million, by acquiring a 15% share
in potential future appreciation. One of the two portfolios consists of
twelve high-quality office buildings in Berlin, Frankfurt, Munich and other
German cities, with a total of 54,000 sqm in leased space. The value of
this portfolio is about EUR 78 million. The other portfolio comprises four
high-quality office buildings in good locations in the greater Munich area,
with a total of 35,000 sqm in leased space and a total investment volume of
EUR 58 million.

Already in the preceding year, AIG and ADLER joined forces to acquire
Airport Center Luxembourg, with ADLER assuming a 10% share, as well as
asset management responsibilities. 'In addition to our core project
development business and the development of our own portfolio, our Company
is built on three pillars, of which asset management will develop into the
most important in the medium term' says Yaltrak.

'Nevertheless, we are continuing to develop our own real estate portfolio
and are working diligently to complete our ongoing real estate projects'
says Harloff. 'In these areas as well, we have not been particularly
affected by the US subprime lending crisis.' Unlike most European and North
American markets, the German real estate market is at the beginning of a
broad-based upswing. 'After years of declining property values in all
regions, we have seen a recovery beginning, as always, in prime locations
in large urban centers' says Harloff. 'This trend will solidify, which will
take time, since the German real estate market is so big and so broad that
major changes take a lot of time.'

About ADLER Real Estate AG: ADLER Real Estate AG is active in asset
management, building-up of portfolio properties and commercial real estate
development. The Company's core competence consists in value and profit
orientated asset management and focuses on the realization and marketing of
high quality real estate projects. Hence, ADLER Real Estate AG aims to
strategic partnership if major projects occur. ADLER Real Estate AG's
history dates back to the renowned Adlerwerke in
Frankfurt which were founded in the 19th century.

If you have any questions, please contact:

german communications dbk ag

Jörg Bretschneider

Alsterufer 34, 20354 Hamburg

Phone: 040/46 88 33 0, Fax: 040/47 81 80

presse@german-communications.com 
21.02.2008  Financial News transmitted by DGAP
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Language:     English
Issuer:       Adler Real Estate AG
              Neuer Wall 77
              20354 Hamburg
              Deutschland
Phone:        +49 (0)40 - 29 8130-0
Fax:          +49 (0)40 - 29 8130-35
E-mail:       info@adler-ag.de
Internet:     www.adler-ag.de
ISIN:         DE0005008007
WKN:          500800
Listed:       Regulierter Markt in Berlin, Frankfurt (General Standard),
              Düsseldorf, München; Freiverkehr in Hamburg
 
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