Investing in the New German REITs

1. Investing in the New German REITs Investment Advantages from Proposed G-REITs vs. Current Investement Structures Andreas Ibel, CEO of TAG Immobilien- und Beteiligungs- AG Luncheon Seminar at The Lotos Club, New York - January 24, 2007

2. REITs already introduced REIT introduction under way G-REIT Introduction in 2007 In comparison to other countries in Europe, Germany is rather late in introducing REITs The legal and tax framework is under way and expected to come in force by mid 2007 latest, retroactively dating back to January 2007 Much legal and tax framework will be quite similar to UK-REIT G-REIT starts without residential property Sources: EPRA Deutsche Bank 1)Legal framework under way 2)EPRA indices as of September 2006 (also including public real estate companies other than REITs)

3. Market Capitalization of Real Assets Development of stocks in the real estate sector German real estate stocks have performed well in the past year Friendly market surrounding is expected to continue throughout the year 2007 Additional chances may be created by the introduction of the G-REIT Sources: Datastream, Deutsche Bank Public real estate companies - share on national market capitalization Sector capitalization is well below peer group average Introduction of G-REIT will help to increase the perception of real assets as a public investment sector Considerable amount of real estate assets still bound in non real estate companies may be spun off out into G-REITs without major tax penalties Sources: EPRA, Deutsche Bank

4. Existing Market Structures and Trends • In terms of general market capitalization the real estate sector in Germany has to catch up, as currently less than one percent of the real estate values are held by listed real estate companies • The majority of real estate assets are privately held (single persons, civil law associations, closed funds), held as operating assets of non-real estate companies or held by public authorities • Transfer of real assets into listed companies has been hindered by tax penalties • Within the last 12 months, even without introduction of G-REITs, a huge number of portfolios has been transferred into public companies or foreign investment groups • Many real estate companies have finished preparations for G-REIT status, especially to spin off existing portfolios • Number and volume of transactions is expected to grow further in 2007

5. Investment Advantages for G-REITs • The taxation advantages over direct investments by German or foreign entity are expected to create huge public interest • Investments in G-REITs avoid the remaining tax risks and high administration effort that often comes along with purchases through a foreign etity • G-REITs have the advantage of much better transparency and, by being listed, of much higher fungibility over closed real estate funds (locked investment) • Higher market capitalization will enhance the perception of real estate assets as a fungible investment class, thus driving the market • REITs are able to focus on single sector segments, such as office, retail, logistics, nursing homes, etc., in combination with the less strict regulations compared to open funds giving REITs the advantage of better performance • With the abolition of tax penalties for transfers it is expected that G-REITs will take a huge share of the transfer of real assets that are yet locked up in industrial and service firms (around 70 % compared to some 30 % in the US) • The high rate of distributable profits to be paid out as dividends is another feature that is expected to attract cash flow-oriented investors • In summary the G-REIT will be a new kind of indirect investment possibility for the German market, with a favorable combination of features and a number of USPs in a friendly market environment

6. TAG Short Profile and Strategy • TAG is publicly listed in the SDAX (small cap index), with over 6,000 own units, another 1,250 units in development or under construction and some 7,200 third party units in management • Experienced management with clear focus on investor’s needs • Group structure has been optimized for introduction of G-REITs • Subsidiary TAG Gewerbe AG is ready to be launched as a commercial G-REIT, Bau-Verein zu Hamburg AG can on short notice (when housing is included in G-REIT framework) be a G-REIT with focus on residential, and TAG Asset Management GmbH covers all non-REIT activitites • Track record of recent acquisitions, with focus on growing German cities and metropolitan areas, transaction process managed by multilevel acquisition procedure • TAG’s “Buy, Build & Hold” strategy further enhances the real asset values • Joint ventures with national and international partners focus TAG’s core competencies

7. Contact Andreas Ibel, CEO Tel. +49 (0) 40 – 380 32 382 Fax +49 (0) 40 – 380 32 388 a.ibel@tag-ag.com Dominique Mann / Investor Relations Tel. +49 (0) 40 – 380 32 305 Fax +49 (0) 40 – 380 32 388 mann@tag-ag.com Kirsten Schleicher / Public Relations Tel. +49 (0) 40 – 380 32 140 Fax +49 (0) 40 – 380 32 388 k.schleicher@tag-ag.com TAG Tegernsee Immobilien- und Beteiligungs-AG Steckelhörn 9 D - 20457 Hamburg

8. Thank you for your attention