KWG Kommunale Wohnen AG resolves cash capital increase to fund further growth

Hamburg, 15. March 2012 - After its recently announced transaction that was the largest in its history and looking back to a successful fiscal year 2011, KWG Kommunale Wohnen AG, the German long-term oriented German property holding company, plans to increase its share capital against cash to fund further planned steps in growth.

As announced today in the Electronic German Federal Gazette (,elektronischer Bundesanzeiger') the Board of Management of KWG Kommunale Wohnen AG has resolved with the approval of the Supervisory Board to increase the company's share capital to up to EUR 14,381,234.00, divided into as many notional no-par value shares, by issuing up to 3,576,505 notional no-par value shares from its existing authorised capital. Shareholders of the company may subscribe to new shares at a 3:1 ratio, i.e. for every 3 shares held 1 new share may be subscribed. An over-allotment option to shareholders interested in exceeding their subscription rights has been granted, however, subscription rights will not be traded.

The subscription period runs from 16 March 2012 until 30 March 2012 (18:00 Uhr CET). The subscription price will be determined by means of a bookbuilding process and will not exceed EUR 5.50. The subscription price will be fixed on 27 March 2012. Following the subscription period shares that have not been subscribed to will be offered for subscription to interested institutional investors in the course of a Private Placement. biw Bank für Investments und Wertpapiere AG, its tied agent Silvia Quandt & Cie. AG and ACON Actienbank AG will serve as Joint-Lead Managers and Co-Bookrunners while LFG Kronos Investment Services GmbH will serve as Selling Agent. biw Bank für Investments und Wertpapiere AG will facilitate the the clearing of the rights offer.

By funds generated through the capital increase KWG Kommunale Wohnen AG plans to finance its accelerated growth as it plans to capitalise on existing opportunities in the market to strengthen its sustainable profitability and pave the way to its ability to pay its shareholders a dividend. Acquisitions are considered an integral part of its planned expansion.

About KWG Kommunale Wohnen AG
KWG Kommunale Wohnen AG is a long-term oriented owner and operator of German residential real estate units. The company acquires residential real estate portfolios at attractive conditions in promising micro-locations of metropolitan regions and German regional centres and sustainably increases their value through an active real estate asset management. By refurbishments to high energy efficiency standards incidental costs for tenants are being lowered. KWG AG covers the complete value chain from acquisitions to construction management and its own internal property management. As a result vacancies are being reduced and income from net cold rent is being increased. This leads to value enhancements of the properties, above average Returns on Equity and profitability. KWG's portfolio post the transaction amounts to 6,800 units. KWG's shares are listed in the Entry Standard of the Frankfurt Stock Exchange.

Contact
KWG Kommunale Wohnen AG
Jan Hutterer, Head of Investor Relations
Alstertor 9
20095 Hamburg
Tel.: +49- 40- 2263088-100
eMail: ir@kwg-ag.de
www.kwg-ag.de

This release was published on openPR.