MEAG sells national real estate package and diversifies its portfolio

MEAG, asset manager of Munich Re and ERGO Insurance Group, announced today that it will dispose of German real estate valued at over € 1 billion. The Whitehall 2005 Funds managed by Goldman Sachs will take on a portfolio consisting almost exclusively of industrial real estate while PATRIZIA Real Estate Group will acquire a portfolio of predominantly residential properties. With this transaction, announced five months ago, MEAG has taken another step in its planned optimisation of the structure and regional composition of Munich Re-insurance Group's real estate portfolio.

Dr. Knut Riesmeier, Managing Director of MEAG explains: "The goal of our portfolio management is to increase the portfolio's international diversity in order to generate a highly reliable and predictable profit from real estate for the Munich Re-insurance Group. We have been pursuing this strategy of international diversification for years now, and this sale was another planned move within it."

The focus of the new investments is on industrial real estate in top locations in European metropolitan areas. Riesmeier continues by saying: "German real estate will continue to be an important part of our portfolio in the future, and we are looking into the purchase of selected properties on the domestic market." MEAG will also continue to consider real estate acquisitions in Asia and the USA in the future that complement the portfolio.

MEAG was advised by AtisReal with regard to the sale of industrial properties, and for housing by Ernst & Young.

About MEAG:
Munich based MEAG MUNICH ERGO AssetManagement GmbH manages the assets of Munich Re and ERGO Insurance Group. With offices in New York and Hong Kong, MEAG is a global player that manages both the group's own assets and those of partners outside the Munich Re Group. MEAG currently manages assets valued at approximately € 183 billion, of which around €14 billion will be in real estate after the sale.


Munich, 29.11.2006


Contact:
Dr. Josef Wild
Tel.: 089 / 2489 - 2072
Fax: 089 / 2489 - 2075
E-mail: JWild@meag.com