euro adhoc: AIG International Real Estate GmbH&Co. KGaA / Mergers - Acquisitions - Takeovers / AIG International Real Estate Announces Purchase of Industrial Property (E)

Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.

Frankfurt am Main, December 31, 2003 - AIG International Real Estate GmbH & Co. KGaA ("AIRE") announced today a EUR 23.5 million equity investment in Auto Parts Park, a manufacturing and warehouse facility comprising approximately 92,700 square meters in Lozorno, near Bratislava, Slovakia.

AIRE group companies purchased 100% of the ownership interests in Auto-priemyselny Park s.r.o. ("APP"), a Slovakian limited liability company. APP owns the three buildings on the site and has a 98-year lease on the land. The buildings are currently 100% leased by auto parts suppliers for the nearby Volkswagen manufacturing plant, which manufactures the new VW Tuareg and other models.

The buildings and the land lease held by APP were valued at approximately EUR 57.3 million, and are partially financed by a EUR 34 million 15-year mortgage, which is secured by APP’s assets and is non-recourse to AIRE.

The transaction includes a forward contract with the developers of the existing buildings to develop an additional two buildings on the remaining land.

The previous owner and developer of APP was AIG/LINCOLN Eastern Europe (Slovakia and Czech Republics) Limited Partnership, one of the largest property developers in Central and Eastern Europe. The transaction was approved by AIRE’s Supervisory Board (Aufsichtsrat), both to authorize an investment of more than 20% of AIRE’s assets in a single investment and because the seller was an affiliate company of American International Group, Inc.

Further Information:

The shares of AIG International Real Estate GmbH & Co. KGaA are not registered under the US Securities Act of 1933.

Further inquiry note:
AIG International Real Estate Gmbh & Co. KGaA
Conradin Schneider
Tel: +49 (0)69 97113225
Tel: +49 (0)69 9711 3225
FAX: +49 (0)69 9711 3204

Emittent: AIG International Real Estate GmbH&Co. KGaA Oberlindau 76-78 DE-60323 Frankfurt am Main Tel: +49 (0)69 9711 3225 FAX: +49 (0)69 9711 3204 Email: WWW: ISIN: DE0006344211 WKN: 634421

end of announcement euro adhoc

Indizes: CDAX, Classic All Share, Prime All Share, Prime Standard, SDAX
Börsen: official dealing Frankfurter Wertpapierbörse; free trade Berliner Wertpapierbörse, Bayerische Börse, Baden-Württembergische Wertpapierbörse
Branche: Financial & Business Services
Sprache: Englisch