DGAP-News: GAGFAH S.A.: GAGFAH's position related to announcements from the City of Dresden
(firmenpresse) - DGAP-News: GAGFAH S.A. / Key word(s): Legal Matter
GAGFAH S.A.: GAGFAH's position related to announcements from the City
of Dresden
04.03.2011 / 23:23
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Press Release: March 04, 2011
GAGFAH S.A.
2-4, rue Beck
L-1222 Luxembourg
ISIN: LU0269583422
Frankfurt Stock Exchange, Regulated Market (Prime Standard)
GAGFAH's position related to announcements from the City of Dresden
Luxembourg, March 04, 2011 - In addition to the ad hoc announcement
relating to GAGFAH's activities in Dresden, GAGFAH would like to further
clarify the situation with the following statements:
In 2006 GAGFAH acquired WOBA, the Dresden-based housing company with over
45,000 units paying over 1.7 billion Euros to the City of Dresden. Through
that transaction, the City of Dresden was able to pay back its obligations
and become 'debt free'. GAGFAH has historically had a cooperative
relationship with the City. As part of the purchase agreement, GAGFAH
committed to protecting the rights of our tenants via a Social Charter,
regulating among other things rent costs, repairs and maintenance
requirements, and the tenant's rights to their housing. GAGFAH accepted the
requirements of the charter and believes it is and has been in compliance
with the requirements.
GAGFAH has additionally invested over 130 million Euros in the portfolio
since acquisition. We reduced vacancy from 13% to the current levels of 6%,
providing affordable housing to many new residents. Also, through GAGFAH's
real estate transactions new investors were brought to Dresden.
Today the City of Dresden has informed GAGFAH S.A. that the City is
contemplating taking legal action relating to their interpretation of
certain issues from the Social Charter, relating to the wording in some of
our sales contracts. No final decision on the filing of the legal action
has been taken by the City and any action would require a separate
resolution by the City Council (Stadtrat). The City of Dresden has not
specified the amount of any such claims, but has indicated that the claims
could be material.
GAGFAH is confident in its adherence to the Social Charter and the
privatisation agreement. On the limited number of properties GAGFAH has
sold during the relevant period, approximating 91 million Euros in value
for ca 3,400 units, the new owners have also agreed to maintain the rights
of the tenants. We are of the opinion that we have appropriately
safeguarded the interests of our tenants under the social charter, and to
our knowledge, no tenant has been financially disadvantaged nor do we
anticipate any. GAGFAH will vigorously defend against any potential claims
or statements to the contrary.
Contact
GAGFAH S.A.
Investor Relations
2-4, rue Beck
L-1222 Luxembourg
Tel.: +352 266 366 21
Mail: info(at)gagfah.com
www.gagfah.com
R.C.S. Luxembourg B 109.526
About GAGFAH S.A.
GAGFAH S.A. is a joint stock corporation organized under the laws of the
Grand Duchy of Luxembourg qualifying as a securitization company under the
Luxembourg Securitization Law of March 22, 2004. The core business of
GAGFAH S.A.'s operating subsidiaries is the ownership and management of a
geographically diversified and well maintained residential property
portfolio located throughout Germany. With a portfolio of approximately
160,000 apartments, GAGFAH is the largest German listed residential
property company.
End of Corporate News
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Language: English
Company: GAGFAH S.A.
2-4, rue Beck
1222 Luxemburg
Großherzogtum Luxemburg
Phone: + 352 266 366 1
Fax: + 352 266 366 01
E-mail: info(at)gagfah.com
Internet: www.gagfah.com
ISIN: LU0269583422, LU0269583422
WKN: A0LBDT
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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114548 04.03.2011
Datum: 04.03.2011 - 23:23 Uhr
Sprache: Deutsch
News-ID 33388
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
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