Colonia Real Estate AG / Restructure of Company
18.12.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
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Colonia Real Estate AG takes first measures in cost-cutting and efficiency
program
* Colonia Real Estate and their subsidiaries reduce 20 percent of the staff
* 9.5 million Euro saved through restructuring measures in 2009
Cologne, December 18. 2008 - Colonia Real Estate AG (ISIN: DE0006338007;
WKN: 633800) the recently announced cost-cutting and efficiency program is
showing its first effects. The measures focus on four areas: consolidation
of non-operating subsidiaries, cut back by diversification, separation or
restructuring of business areas as well as external consulting expenses and
staff reduction. So far it was agreed on annual savings of 9.5 million Euro
which consists of 4.5 million Euro recurring costs and 5 million variable
costs.
25 employees are going to leave the CRE group which sums up to about 20
percent of the staff. This number also includes the employees which left
through the management buy out of a subsidiary in the beginning of
December. The other employees will leave the company by the end of the year
and the end of March 2009. Together with the management buyout this sums up
to 2.5 million Euro recurring costs which are saved. Due to this,
non-recurring restructuring costs of 0.3 million Euro have to be considered
in the fourth quarter.
Together with the staff reduction a centralization of the group will take
place. Tasks and budgets will be consolidated and centralized, especially
in administrative as well as accounting functions and areas, marketing as
well as the real estate sales and acquisition department. All subsidiaries
will be advised by one tax consultancy. Reorganization also takes place in
the subsidiary CRE Resolution. The office in Stuttgart will be closed by
the end of the year and the business will be taken over by their office in
Frankfurt. Through these centralization measures another 1.25 million Euro
can be saved annually.
For CEO Stephan Rind important steps in the cost-cutting program according
to schedule are done. He states: 'major steps are now taken such as the new
organized subsidiaries and contracts with external consultants. Even after
additional restructuring costs we expect administrative cost to be below 4
million Euro in the fourth quarter.'
Contact:
Stephan Rind
CEO
Colonia Real Estate AG
Zeppelinstr. 4-8
50667 Köln
Telefon: +49 (0)221 71 60 71 0
Fax: +49 (0) 221 71 60 71 99
E-Mail: ir@cre.ag
PR and Press Contact:
Thomas Busch
Leiter Marketing und Kommunikation
Telefon: +49 (0)221 71 60 71 0
Fax: +49 (0) 221 71 60 71 99
E-Mail: t.busch@cre.ag
18.12.2008 Financial News transmitted by DGAP>
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Language: English
Issuer: Colonia Real Estate AG
Zeppelinstr. 4 - 8
50667 Köln
Deutschland
Phone: +49 221-716071-0
Fax: +49 221-716071-99
E-mail: info@cre.ag
Internet: www.cre.ag
ISIN: DE0006338007
WKN: 633800
Indices: SDAX, GPR 250, MSCI Germany Small Cap Index, FTSE EPRA/
NAREIT, E&G DIMAX
Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
in Berlin, Hannover, München, Hamburg, Düsseldorf, Stuttgart
End of News DGAP News-Service
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