Whole fiscal burden must be kept in view

Bonn/Frankfurt am Main/Hamburg, 10 March 2005 - IVG Immobilien AG, Deutsche Wohnen AG and Deutsche EuroShop AG favour the clear positioning of a German REIT beyond investment law and the German "Investmentsteuergesetz".

The three large listed German Real Estate Corporations support the ambitious plan of the German Finance Government Department regarding the short termed introduction of a German REIT. "Abroad this topic is noticed with great interest. Not only from the view of real estate and the capital market, but also as a touchstone for the dynamic in changes in Germany overall" reports Dr. Eckart John von Freyend, CEO of IVG Immobilien AG from his meetings with international investors.

Only by an independent positioning compared to existing real estate investments, particularly open and closed ended funds, a German REIT is able to get the required transparency and international comparability. But that´s what a German REIT needs. The relationship of a REIT to the rules of German open ended funds would be the wrong signal to the capital market. "The tight demands of German stock corporation law arrange for transparency on international level. An overregulation gets in the way of the self-regulating market power", Claus-Matthias Böge, CEO of Deutsche EuroShop AG is stating.

The recommendations of the Initiative Finanzstandort Deutschland (IFD) are a good basis for the introduction of a German REIT. Andreas Lehner, CEO of Deutsche Wohnen AG: "IFD did an excellent pioneer work, which have to be substantiated by the legislator".

In current legislation actions it is mainly essential, that the whole fiscal burden is truely understood. The taxation of hidden reserves (so called "exit-tax"), the concrete definition of an assessment basis for dividends and the taxation on level of the investor are a system, which will decide on the acceptance of a REIT.

If the G-REIT will be structured like that and for that case stockholders, companies and the public sector accept the G-REIT public authorities, capital and real estate market and the business location Germany will benefit; backed by abroad corresponding experience.

Contact

Dr. Wilhelm Breuer
Head of Investor Relations
IVG Immobilien AG
Phone: ++49 228 844 137

Hubert Bonn
Head of Investor & Public Relations
Deutsche Wohnen AG
Phone: ++49 6131 6397 116

Patrick Kiss
Head of Investor & Public Relations
Deutsche EuroShop AG
Phone: ++49 40 41 35 79 20