MEAG sells nationwide package of commercial real estate

MEAG, asset manager of Munich Re and ERGO Insurance Group, has disposed of a package of 28 predominantly commercially used properties at various locations in Germany worth a total of Euro 400 million. Buyer of the properties is Lehman Brothers Real Estate Partners (LBREP), a real estate fund managed by Lehman Brothers. With this move, MEAG continues to optimise the structure and composition of Munich Re Group's real estate portfolio.

MEAG's Global Head of Real Estate Dr. Knut Riesmeier explains: "The sale reduces the historically high weighting of German properties in our real estate portfolio. Nonetheless, German real property remains an attractive investment and an indispensable part of our internationally diversified portfolio. This sale was another planned step in the strategy of international diversification that we have been pursuing for a number of years now."

The transaction was completed in a market environment that has become increasingly difficult. Dr. Hans-Joachim Barkmann, in charge of German real estate at MEAG, says: "Marketability and size of the portfolio were of key importance for Lehman Brothers. The transaction bears witness to the buyer's strength, with creditworthy investors finding even better conditions on the lending market today than just a few weeks ago. Good borrowers are rare and in demand."

This is the fifth real estate portfolio that LBREP has bought from German insurance companies in the last 18 months. Gerald Parkes, Head of LBREP Europe, says: "Despite the market turbulence in recent weeks, we will remain active in Germany and keep a look out for quality portfolios. The MEAG deal is one building block within this strategy. We hope to do further business with MEAG in the future."

MEAG was advised by AtisReal in this deal; LBREP by CBRE and Atos.

MEAG MUNICH ERGO AssetManagement GmbH in Munich is the asset manager for Munich Re and ERGO Insurance Group. With offices in New York and Hong Kong, MEAG has an international orientation and also manages the assets of clients outside the Munich Re Group. MEAG currently manages assets to the value of around € 182 billion, of which around € 13 billion are held in real estate.

Munich, 5 October 2007

Contact:
Dr. Josef Wild
Telephone: +49 89 | 2489 - 2072
Fax: +49 89 | 2489 - 2075
E-mail: JWild@meag.com