EANS-News: GSW Immobilien AG establishes basis for further growth with capital increase

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Capital measures

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GSW Immobilien AG establishes basis for further growth with capital
increase

* Discounted rights issue of approx. EUR 201.8 million
* New Shares with full dividend entitlement for 2011
* Subscription period expected to end May 2, 2012
* New shares expected to begin trading May 3, 2012

Berlin, April 18, 2012 - The management board of GSW Immobilien AG,
with the approval of the supervisory board, yesterday resolved a
capital increase against cash contributions with shareholders'
indirect subscription rights. The Company's share capital, currently
amounting to EUR 41,052,630, will be increased through the exercise
of the existing authorised capital by EUR 9,473,684 to EUR 50,526,314
against cash contributions through the issue of up to 9,473,684 new
no par value bearer shares. Thomas Zinnöcker, CEO of GSW: "Our
business model combines sustainable growth with an attractive
dividend policy. After the successful acquisition of approx. 4,800
apartments in the fall of last year, the capital increase becomes a
basis for further acquisitions. We are currently seeking promising
growth opportunities". The Company expects to receive gross proceeds
from the capital increase of approx. EUR 201.8 million. The Company
intends to use the net proceeds of the offering of EUR 190.3 million
for future acquisitions and to optimise its strategic and financial
flexibility. At the next shareholders' meeting, the management and
supervisory boards will propose to distribute dividends for the 2011
fiscal year amounting to EUR 0.90 per share. The new shares being
offered will carry full dividend entitlements for the fiscal year
2011. Pursuant to the prospectus approved by the German Federal
Financial Supervisory Authority (Bundesanstalt für
Finanzdienstleistungsaufsicht - BaFin) and published today, the new
shares will be offered to shareholders for indirect subscription at a
ratio of 13:3 at a subscription price of EUR 21.30 per new share. 13
existing shares of GSW Immobilien AG entitle the holders to subscribe
for 3 new shares. The subscription period will begin on April 19,
2012 and end on May 2, 2012. Any new shares not subscribed for by the
end of the subscription period will be offered by way of a private
placement. The subscription rights (ISIN DE000GSW1129 / WKN GSW112)
for the new shares will be traded during the period from April 19,
2012 up to and including April 27, 2012 on the regulated market
(regulierter Markt) (XETRA Frankfurt Specialist) of the Frankfurt
Stock Exchange. The Company's existing shares will be quoted as
ex-subscription rights (ex-Bezugsrecht); this quotation will commence
on April 19, 2012. The new shares are expected to be included in the
existing quotation for the Company's listed shares in the sub-segment
of the regulated market with additional post-admission obligations
(Prime Standard) on the Frankfurt Stock Exchange and on the regulated
market of the Berlin Stock Exchange on May 3, 2012. Additional
details on the subscription offer: BofA Merrill Lynch, Berenberg Bank
and Deutsche Bank have fully underwritten the rights issue at the
subscription price and are acting as Joint Global Coordinators and
Joint Bookrunners for this transaction. Kempen & Co. and UniCredit
have been mandated as Joint Lead Managers. The international
securities identification number (ISIN) of GSW will be DE000GSW1111
and the German security code number (WKN) will be GSW111. The Company
has agreed to a lock-up period of six months, and, subject to certain
exceptions, the Company's management board and Dr Jochen Scharpe, a
member of the Company's supervisory board, have agreed to a lock-up
period of three months. These lock-up periods begin after the start
of trading in the new shares. Successful and efficient business model
GSW is one of the largest private residential property firms in
Berlin as measured by the number of owned apartments and the number
of apartments managed for third parties. The Company owns a portfolio
with approximately 53,000 residential units and also manages
approximately 17,500 residential and commercial property units for
third parties. With a clear focus on Berlin, GSW operates in one of
the largest and most attractive residential property markets in
Germany. For a number of years, the Berlin residential property
market has been characterised by a growing population, declining
vacancy rates, increasing rents and a younger population compared to
other German cities. GSW's business model is designed to benefit from
these demographic trends and economic factors in the long run. GSW
actively manages its portfolio to consistently increase returns. This
includes selected purchases and sales of residential units or
properties as well as appropriate value-enhancing maintenance and
refurbishment measures. In addition, GSW focuses specifically on
tenant requirements to further increase tenant satisfaction and thus
to reduce vacancies as well as costs associated with tenant changes.
This supports consistent rental income growth. As of March 31, 2012,
the net in-place rent in the GSW portfolio has grown to an average of
EUR 5.12 per square metre and month. At the same time, the Company
was able to reduce the apartment vacancies to 3.3 percent. Through
its efficient operational platform, GSW is able to integrate new
residential units in its portfolio without meaningfully increasing
administrative costs. Mutual cooperation in Berlin As a company with
a long-standing history in Berlin, GSW is aware of its responsibility
for the city and its inhabitants and places great value on
cooperating in a spirit of partnership with tenants and the city of
Berlin. In doing so, GSW is, for example, supporting numerous
neighbourhood activities and social services, offering special
residential products aiming at different situations in a tenants'
life and regularly conducting client surveys. This partnership is
also reflected in the fact that representatives of the federal state
of Berlin sit both on the supervisory board of GSW and in the
implementation committee.

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 34 233 1960

Key subscription offer data at a glance Subscription price: EUR
21.30; Subscription ratio 13:3; Subscription period: April 19, 2012
until and including May 2, 2012; Subscription rights trading: April
19, 2012 until and including April 27, 2012; Number of new shares:
9,473,684; Gross issuance proceeds of approx. EUR 201.8 million; Net
issuance proceeds of approx. EUR 190.3 million; Type of issue: Public
offering of shares in Germany and Luxembourg as well as private
placements outside of Germany and Luxembourg; Stock exchanges:
Frankfurt Stock Exchange (prime standard) and Berlin Stock Exchange;
ISIN DE000GSW1111 WKN GSW111; Syndicate banks: BofA Merrill Lynch,
Berenberg Bank and Deutsche Bank (Joint Global Coordinators and Joint
Bookrunners) and Kempen & Co. and UniCredit (Joint Lead Managers);
Lock-up: 6 months for Company with respect to new capital measures, 3
months for members of the Company's management board and Dr Jochen
Scharpe, subject to certain exceptions.

About GSW GSW Immobilien AG is a leading privately-owned residential
real estate company operating in Berlin, with an owned portfolio of
approximately 53,000 apartments. In addition, a subsidiary of GSW
manages approximately 17,500 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. GSW
employed approximately 581 employees on average in 2011. As of
December 31, 2011, the Company's property portfolio was valued at
approximately EUR 2.9 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 of America 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 of America absent
registration under the U.S. Securities Act of 1933, as amended (the
"Securities Act") except pursuant to an 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 of America.

This press release is 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 as issued by the
company, approved by the German Financial Supervisory Authority
(BaFin) and published in connection with the offering of such shares.
Copies of the prospectus are available free of charge from GSW
Immobilien AG, Charlottenstr. 4, D-10969 Berlin, Germany or on GSW
Immobilien AG's website (www.gsw.de).

Further inquiry note:
René Bergmann
Tel.: +49 30 2534 1362
Fax: +49 30 2534 233 1960
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: Berlin, regulated dealing/prime standard:
Frankfurt
language: English