Colonia Real Estate AG, Cologne ("Company") is issuing to its shareholders share options without bonds free of charge based on the resolution of the general assembly of August 24, 2004. Entitled to benefit from the up to 6,750,000 share options are only such shareholders of the Company, who are shareholders on November 19, 2004 20:00 CET. One share of the Company entitles to the reception of three share options for free. The term of acceptance for this subscription right is four weeks starting on November 20, 2004 until December 17, 2009. The share options will be securitized in a global share certificate and admitted to the unofficial regulated market after delivery of the share options to the shareholders. The date of maturity of the share options is June 1st, 2009, the share options can only be exercised in the period between April 15, 2009 and maturity date with effect at maturity. If the share option is executed, its respective owner will receive for each six share options and an additional cash payment of € 12 one individual new share of the Company without par value and a calculated share of the share capital of € 5 out of conditional capital, which was created up to the amount of € 5,625,000 for this single purpose. For further details of the reception, the specifications, the condition of execution of the share options etc. please refer to the share option provisions, which can be downloaded at www.cre.ag and www.vem.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 achiev 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.

DOWNLOAD: Optionsscheinsbedingungen 2004

DOWNLOAD: Annahmeerklärung

DOWNLOAD: Bekanntmachung.pdf