Fully places share issue for cash capital increase

• Bau-Verein zu Hamburg fully places share issue for cash capital increase
• Placement of shares for the internationalisation of the shareholding structure and increase of the free float
• Accrued funds to be used to prepare the

Hamburg, 16th March, 2006 - The Bau-Verein zu Hamburg has placed all of the shares from its agreed share issue. Because of very strong investor interest, the share issue was increased from an original 3,000,000 shares to 4,000,000. This corporate action means that the Bau-Verein has accrued funds totalling € 19 million. The number of Bau-Verein shares has increased a result of this action from 16,939,994 to 20,939,994. The newly issued shares are fully entitled to dividends from January 1st, 2006.

At the same time, the Bau-Verein's majority shareholder, TAG Tegernsee Immobilien- und Beteiligungs-AG, was also able to successfully issue a total of 2,511,463 new shares. A total of € 21.3 million was raised by this share issue. The number of TAG shares increases from 10,004,901 to 12,556,364, fully entitled to dividends from January 1st, 2006.

Both cash capital increases were greatly over-subscribed. The Bau-Verein used this great interest to make the shareholding structure more international. It was for this reason that the majority shareholder TAG waived its purchasing right for the share issue and sold 1,100,000 shares to a British institutional investor as part of a share placement. The free float has been significantly increased as a result of these measures and liquidity and the tradability of TAG shares have been improved.

The funds accrued by this new share issue will be used for the purchase of residential properties in the major cities of western Germany and Berlin and for the enhancement of shareholder equity. Against the background of the planned introduction of the G-REIT legislation in German at the beginning of 2007, the supervisory board and board of directors of the Bau-Verein continue to follow the strategy of positioning the Bau-Verein as a house building REIT, in accordance with any potential REIT legislation.

TAG and the Bau-Verein were assisted in the placement of the shares from the share issue by the Norddeutschen Landesbank Girozentrale in co-operation with Viscardi Securities Wertpapierhandelsbank GmbH, Munich.

About the Bau-Verein zu Hamburg
The Bau-Verein Aktiengesellschaft (WKN 517900, ISIN DE0005179006) is a listed property company. Market capital following the inclusion of the new shares in the quote (estimated to be the end of May following the creation, approval and authorisation of the stock exchange admission prospectus) is around € 115 million. The core business of the company is the active development of property and the management as well as new construction of residential and specialist property in Germany. 

Contact:
Dominique Mann
Investor Relations
Tel +49 (0)40 - 380 32 305
Fax +49 (0)40 - 380 32 388
>> mann(at)bau-verein.de
Alte Königstraße 8-14
22767 Hamburg