On Thursday, January 20, 2005, Colonia Real Estate AG, Cologne, has purchased two office buildings in the Cologne area. The property was built in the year 2002, offers a floor space of around 7000 m² and is let under a long term lease agreement to the Gesellschaft für Entwicklung, Beschaffung und Betrieb mbH (g.e.b.b.), a subsidiary of the Federal Ministry of Defence. Colonia Real Estate AG has agreed with the seller on the non-disclosure of further details of the transaction. The purchase is subject to the supervisory board's approval of Colonia Real Estate AG.

Colonia Real Estate AG is a listed real estate company, whose primary business activity is the acquisition, administration and the sale of undervalued or distressed real estates and real estate companies mainly in Germany. Beyond that we are seeking lucrative investment opportunities in Europe, particularly in the new east European countries. Our investment objective is to achieve a minimum return of 15% (IRR) with a holding period of 2- 8 years.

For further information please contact

Stephan Rind, Klaus Reichert or Christian Grosch
at Colonia Real Estate AG,
Hohenstaufenring 48 - 54
50674 Cologne, Germany
Phone +49 221 716071 0
www.coloniarealestate.com.

ISIN: DE0006338007
WKN: 633800
Listed: Düsseldorf; Amtlicher Markt in Berlin-Bremen and Düsseldorf; Freiverkehr in Frankfurt and Stuttgart