Berlin residential real estate company GSW Immobilien AG plans IPO in second quarter of 2010

Berlin (ots) -

- A leading privately-owned residential real estate company in
Berlin intends to list on the Regulated Market (Prime Standard
segment) of the Frankfurt Stock Exchange and on the Berlin Stock
Exchange

- Net primary proceeds to strengthen GSW's capital base,
reduceoverall loan-to-value ratio, pay off interest bearing EK02
tax liabilities and provide the Company with greater flexibility
in financing its planned growth

- Deutsche Bank and Goldman Sachs International acting as Joint
Global Coordinators and Joint Bookrunners; Berenberg Bank,
Commerzbank and HSBC Trinkaus mandated as Co-Lead Managers

GSW Immobilien AG ("GSW"), a leading privately-owned residential
real estate company in Berlin is preparing for an IPO. The Company
plans to list its shares on the Regulated Market (Prime Standard
segment) of the Frankfurt Stock Exchange and on the Berlin Stock
Exchange in the second quarter of 2010. Deutsche Bank and Goldman
Sachs International are acting as Joint Global Coordinators and Joint
Bookrunners. Berenberg Bank, Commerzbank and HSBC Trinkaus were
mandated as Co-Lead Managers. GSW plans to use the net primary
proceeds from the offering to further strengthen its capital base,
reduce overall loan-to-value to below 60%, pay off interest bearing
EK02 tax liabilities and provide the Company with greater flexibility
in financing its planned growth.

With a portfolio of approximately 49,700 apartments and 3.1
million square meters of residential floor space, GSW believes it is
the largest privately-owned residential real estate company in the
German capital Berlin based on the number of apartments owned and
managed. The strategy of the Company is to enhance long-term cash
flow from portfolio and property management. GSW, founded in 1924,
was acquired by a syndicate of the Whitehall Funds and affiliates of
Cerberus Capital Management, L.P. from the State of Berlin in 2004.
In subsequent years, the business organization was systematically
restructured and optimized. At the end of 2009, GSW's property
portfolio was valued at approximately E2.6 billion.

GSW benefits from operating in an attractive German residential
real estate market

With a clear focus on Berlin, GSW operates in one of Germany's
largest residential real estate markets. The business model is
constructed to capitalize on demographic trends and economic factors
that GSW believes are more attractive in Berlin relative to other
large German cities. For several years, the Berlin real estate market
has experienced increasing population, declining vacancy rates,
increasing rents and, compared with other German cities, a younger
population.

Successful and efficient operating business model

Since the privatization in 2004, GSW has transformed its cost
structure and increased its efficiency through restructuring and
efficiency measures. Due to GSW's focus on a single major residential
real estate market in Germany, the Company is able to manage its
portfolio efficiently and to capture economies of scale. Furthermore,
GSW is focused on increasing customer attention and satisfaction,
which support the relatively high levels of rental growth.

Optimization of returns via active portfolio management

GSW employs an active portfolio management strategy to increase
returns, including purchasing under-managed portfolios as well as
selling selective apartments and assets. While the Company's business
model focuses on the efficient management of residential assets, GSW
intends to take advantage of its market presence and operating
systems to grow its portfolio and increase returns. Since 2004, the
Company has acquired several portfolios in which it has identified
specific opportunities for active asset management. In certain cases,
the Company will review attractive offers for the sale of real
estate.

Track record of successfully generating rental growth

GSW's business model has proven resilient to economic downturns
and recessions, as the Company has managed to continually increase
its nominal rents since 1998 despite the volatility in German GDP
growth. This relative independence to cyclical fluctuations is
reinforced by GSW's tenant structure. A large proportion of the
Company's tenants has indirect household incomes, such as pensioners,
and is therefore relatively less exposed to cyclical influences. From
2006 to 2009, GSW increased residential rents on average by 3.2% per
year on a like-for-like basis, while reducing the residential vacancy
rate by an aggregate of 32%. Company management has instituted
innovative, award-winning marketing programs to drive rental growth,
including successful campaigns aimed at rent increases, vacancy
reductions and re-letting with minimal unit turn costs.

In the financial year 2009 GSW generated a consolidated net rental
income of E133.6 million (2008: E129.3 million). The Company's
consolidated net operating profit (EBIT) amounted to E229.0 million
in 2009 (2008: E185.7 million), and the consolidated net income
increased from E107.7 million in 2008 to E172.1 million in 2009.

About GSW

GSW Immobilien AG is a leading privately-owned residential real
estate company operating in Berlin, with an owned portfolio of
approximately 49,700 apartments and 3.1 million square meters of
residential floor space. In addition, a subsidiary of GSW manages
approximately 17,000 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 a
syndicate of investors including affiliates of Cerberus Capital
Management, L.P. and the Whitehall Funds. GSW employed approximately
630 people on average in 2009. As of December 31, 2009, the Company's
property portfolio was valued at approximately E2.6 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 ).

Originaltext: GSW Immobilien GmbH
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Media Relations:
GSW Immobilien AG
Thomas Rücker
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