EANS-Adhoc: AIRE GmbH & Co. KGaA:Agreements With AIG Group Companies to Redu

DJ EANS-Adhoc: AIRE GmbH & Co. KGaA:Agreements With AIG Group Companies to Reduce Advisory Services Costs and to Secure a Credit Facility

ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro adhoc with the aim of a Europe-wide distribution. The issuer is solely responsible for the content of this announcement.

14.06.2011 Frankfurt am Main, June 14, 2011 - Today AIRE GmbH & Co. KGaA (the "Company") entered into an agreement in principle with AIG Asset Management (U.S.) LLC (the "Advisor") to reduce by 50% the management fee charged to the Company by the Advisor. Based on its 2010 financial results, the Company expects to achieve an initial savings of approximately EUR 650,000 on the annual cost of advisory services in 2011. The Company also reached an agreement in principle with AIG Global Real Estate Investment Corp. ("AIG Global Real Estate") to provide a three-year, USD 25.0 million credit facility to the Company and its operating subsidiaries upon market terms. The facility will strengthen the Company´s ability to continue to fund existing commitments to current investments and funds in which it is an investor. The amended agreements with AIG Group Companies are following a change in the shareholder structure of the company´s managing shareholder AIG International Real Estate Geschäftsführungs- und Verwaltungs- GmbH ("AIRE GmbH"). A former 40 % shareholder of AIG International Real Estate Management GmbH sold its shares to AIG Global Real Estate so that the ownership interests in AIRE GmbH are now entirely held by AIG Global Real Estate. AIG Global Real Estate continues to advise the Company on its investments, almost all of which are co-investments between the Company and AIG Global Real Estate and/or other clients of AIG Global Real Estate. The Company remains focused on realizing optimal value for the Company´s investment portfolio in light of the challenges faced by the global financial markets over the last three years. Given the recent illiquid state of global real estate markets and limited availability of capital resources from qualified lenders, it remains difficult to forecast the size and timing of cash flows. However, the Company continues to pursue its goal of returning cash to shareholders from the timely realization of its existing investments, after reserving for existing commitments, ongoing operating expenses and the potential need for additional capital contributions to existing holdings. end of announcement euro adhoc

(END) Dow Jones Newswires
June 14, 2011 08:26 ET (12:26 GMT)