Colonia Real Estate AG raises 2006 estimates significantly

Expects to double earnings to EUR 3.53 per share

Cologne, 11 January 2006. Colonia Real Estate AG (ISIN DE0006338007) today announced significantly increased its estimates for fiscal 2006 based on the excellent performance of its existing property portfolio and purchase offers for a residential portfolio of 566 residential units that is up for sale. The company now expects record sales of EUR 34.6 million and earnings per share of EUR 3.53 instead of previously announced EPS of EUR 2.04. This forecast does not take into account any write-ups of the company's existing property portfolio according to IFRS or asset management activities. For the financial year just ended, Colonia Real Estate AG expects earnings per share of EUR 1.80 and sales of EUR 20.1 million.

Colonia Real Estate AG
Hohenstaufenring 48-54
50674 Köln
Deutschland

ISIN: DE0006338007
WKN: 633800
Listed: Amtlicher Markt in Berlin-Bremen, Düsseldorf und Frankfurt (Prime Standard); Freiverkehr in Hamburg, München und Stuttgart

End of ad hoc announcement (c)DGAP 11.01.2006

Issuer's information/explanatory remarks concerning this ad hoc announcement:

About Colonia Real Estate
Colonia Real Estate AG is one of the leading German Real Estate Investment Companies focusing on the acquisition and the asset management of undervalued or distressed Real Estate. The opportunistic investment approach targets high yield investments mainly in Germany.

Forward Looking Statements
This news release contains forward looking statements based on current assumptions and forecasts made by Colonia Real Estate Group management. Various know and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.

For further information:

Colonia Real Estate AG
Stephan Rind
Hohenstaufenring 48 - 54
50674 Köln
phone: +49 221/ 716071-0
email: rind@cre.ag

edicto GmbH
Axel Mühlhaus
Im Gründchen 18a
61389 Schmitten
phone: +49 6084/ 948590
email: amuehlhaus@edicto.de

End of message (c)DGAP