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- Refinancing needs below 5 per cent of total outstanding debt in the next three years

- Residential portfolio is fully financed with an average interest of 4.8 per cent and 6.7 years maturity

Cologne, October 16th 2008 - Colonia Real Estate AG (ISIN DE0006338007) secured a refinancing of one of its residential portfolios through a successful debt-buyback. The financing volume was more than EUR 30 million. As in May this year the financing was closed at a fix-rate mortgage with a German mortgage bank. The coupon is less than 6 per cent with a five year maturity. With this transaction Colonia reduced its refinancing needs to below 5 per cent in the next three years.

During last 6 months the cologne-based real estate group closed refinancings of more than EUR 70 million. Just EUR 20 million matured. More than EUR 50 million have been initiated by the company to improve the financing structure.

'The fact that we are able to use the actual inefficiencies in the mortgage markets for an attractive buyback of our performing loans and to secure a subsequent refinancing underlines our capacity to act in this environment and our credibility with our banks', stated Stephan Rind, CEO of Colonia Real Estate. 'To secure our liquidity and our long-term financing structure as well as strict cost management on operational levels is our highest priority in the current market. A share buyback program is therefore our least preferred option even with the high discount on NAV at the moment', Rind concludes his statement.

The total debt structure of Colonia Real Estate's residential portfolio is financed with average interest payments of 4.8 per cent and a maturity of more than 6.7 years. The equity ratio of the group remains at 32 per cent.

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