Colonia Real Estate AG / Agreement
23.12.2009
Dissemination of a Corporate News, transmitted by
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Colonia Real Estate AG Demands Wind-up of HSH Nordbank Group's HGA/Colonia
CareConcept I
* Sale of closed-end real estate fund HGA/Colonia CareConcept I severely
impaired by negative news flow regarding HSH Nordbank and its subsidiaries
* HSH Group unit HGA Capital, responsible for sales, succeeded in placing
only 29 percent of the target volume with investors
* CRE demands wind-up of project and rejects recourse to placement
guarantee
* HSH Nordbank would need to put up around 20 million Euros to ensure
placement
Cologne, 23 December 2009 - Colonia Real Estate AG (ISIN DE0006338007) sees
no basis for a continued working relationship with HSH Equity Partner GmbH
due to the continuing negative news coverage of the HSH-Nordbank Group and
the resulting severe impact on sales. This relates particularly to the
closed-end real estate fund HGA/Colonia CareConcept I.
Even though the placement period was extended, HGA Capital GmbH, the
responsible subsidiary of HSH Equity Partners, failed to place more than
around 29 percent of the planned volume in the market in spite of the
product's exceptional ratings. By contrast, competitors were markedly more
successful in placing products in the care facility real estate sector with
concepts comparable to HGA/Colonia CareConcept I. Negotiations with
institutional investors who had expressed an interest in the care
facilities in September in response to the efforts of Colonia Real Estate
AG were cancelled by the managing board of HSH Real Estate AG with no
reason given.
The Board of Management of Colonia Real Estate AG blames the placement
failure on the negative news flow regarding the HSH Nordbank Group and
demands the complete wind-up of HGA/Colonia CareConcept I. Otherwise,
placement guarantor HSH Equity Partners and thus the HSH Group would have
to put up approx. 20 million Euros in capital, even though HSH Nordbank is
already heavily dependent on government support programs. At the same time,
Colonia Real Estate has rejected the draw-down of 5 million Euros for the
placement guarantee and today declared its withdrawal and termination of
the contract. Colonia Real Estate believes that winding up the fund is the
most reasonable alternative for all investors as well as for the
shareholders of HSH Nordbank, as the sale of the care properties held in
the fund portfolio should be possible with little or no loss.
Contact:
Thomas Busch
Head of Investor Relations, Communication and Marketing
Colonia Real Estate AG
Zeppelinstr. 4-8
50667 Cologne, Germany
Phone +49 (0)221 71 60 71 0
Fax +49 (0) 221 71 60 71 99
E-Mail: pr@cre.ag
23.12.2009 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Medienarchiv at www.dgap-medientreff.de> and www.dgap.de>
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Language: English
Company: 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, München, Hannover, Düsseldorf, Hamburg, Stuttgart
End of News DGAP News-Service
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