MEAG renovates shopping center in Hamburg

The Rahlstedt Center in Hamburg is being renovated by MEAG. The investment volume amounts to approximately 40 Million Euro. The goal is to reposition the shopping center under the name "Rahlstedt Arcaden." Completion is planned for 2009. mfi Management for Real Estate AG has been commissioned for the renovation.

Dr. Knut Riesmeier, Managing Director of MEAG, comments: "Retail real estate is an attractive market segment for investments of institutional investors. We see a high potential for value enhancement with the modernizing and restructuring of the Rahlstedt Center." The reason for the high interest of institutional investors is that retail real estate assures predictable revenues.

The Rahlstedt Center in Hamburg-Wandsbek opened in 1983/84 and consists of 18,800 m² rentable space with 45 store units spread over three levels. After more than twenty years, layout and store units do not comply to the specifications of a modern shopping center. Further more, shoppers aren't able to experience the center as a whole since it is divided into two separate buildings. The current concept includes two phases of construction.

About MEAG:
MEAG MUNICH ERGO AssetManagement GmbH of Munich, Germany, manages the assets of Munich Re and ERGO Insurance Group. With offices located in New York and Hong Kong, MEAG is a global player. In addition to handling equities, MEAG collaborates with partners outside the Munich Re Group. Currently, MEAG manages assets valued at approximately €175 billion of which €15 billion are in real estate.

Munich, 10/24/2006

Contact:
Dr. Josef Wild
Telephone: +49 (0) 89 2489 2072
Fax: +49 (0) 89 2489 2075
Email: JWild@meag.com