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JK Wohnbau AG: Successful first listing in the Frankfurt Stock Exchange (Prime Standard)

(PresseBox) (Munich, ) .
- Initial price set at EUR 8.10 per share
- Gross issue proceeds of up to EUR 88.0 million will serve further growth
- First successful flotation of a real estate company in the Prime Standard in 2010

With effect from today, the shares in JK Wohnbau AG (ISIN DE000A1E8H38, WKN: A1E8H3), one of the leading residential property developers in Munich, are listed on the Frankfurt Stock Exchange. The initial price was set this morning at EUR 8.10, some 1.25 percent above the issue price that was fixed at EUR 8.00. A total of 20,764,000 million shares have been admitted to trading at the highest transparency level, the Prime Standard. Of this total, 10,000,000 shares derive from an increase in capital, as a result of which JK Wohnbau AG is now in receipt of gross proceeds amounting to EUR 80 million. Subject to approval, a further over-allotment (greenshoe) of 1,000,000 shares will also be available as an additional increase out of authorized capital. At the start of today's trading the company's market capitalization stood at around EUR 168.19 million.

"We are delighted at the success of our flotation," declared CEO Dr. Josef L. Kastenberger, who sees the company as ideally positioned in Munich's high-growth residential property market. "We intend to invest the proceeds of this share issue primarily in new projects," the real estate expert continued. "Munich continues to offer attractive locations for our core business which lies in the construction of new homes. And through our residential property privatization business we are also exploiting another market that offers strong returns. We see considerable growth potential for JK Wohnbau AG in Munich's housing market through the purchase, modernization and resale of residential units."

With new projects and an invigorated equity base that will enable future developments to be financed without resorting to expensive funding providers, the Executive Board is looking forward to dynamic growth rates accompanied by a marked increase in profitability. This growth will be driven by the region's economic and demographic development, which is drawing around 10,000 people to Munich every year. This in turn is leading to an annual demand in the order of 7,000 new housing units - a level which is regularly unsatisfied by the 4,000 to 5,000 units per year being built. "As a result of this demand overhang, prices are stable and even rising slightly. This is an outstanding environment for private users and institutional real estate investors to invest in this market. We aim to derive an increasing profit from this development in the coming years," Dr. Kastenberger continued.

Thanks to the high level of appreciation displayed by investors for the its business model and the attractive nature of the Munich housing market, JK Wohnbau has successfully made the transition to the stock market, making it the first real estate company in 2010 to float in the Prime Standard.

This successful flotation marks a continuation of JK Wohnbau's success story. Since it was founded in 1995, the company has already completed and sold more than 1,400 residential units. The company currently has around 1,700 units under development in the Munich metropolitan area. Notary sales performance has been growing at an average annual rate of 41%, reaching a record EUR 125 million in 2009. The company ranks as one of the top 3 project developers in Munich.


This announcement and the information that is contains may not be brought or communicated to the United States of America (USA), or be distributed or transferred to U.S. persons (in the meaning of Regulation S issued under the Securities Act of 1933, consequently including legal persons), as well as to publications with general distribution in the USA. Any violation of this restriction may substantiate an infringement against the U.S. securities laws. Shares of JK Wohnbau AG are not, and will not, be registered under U.S. securities regulations, and will not be offered, sold or issued to U.S. persons, or within the USA, for purchase without such a registration or an exemption from the registration requirement. This press release is not an offer to purchase or subscribe for shares.

About ISARIA Wohnbau AG

JK Group, which was founded in 1995, has developed into one of the leading real estate companies in Munich. The company ranks among the Top 3 Munich residential construction project developers, with a notary sales performance of around EUR 125 million in 2009. The company has positioned itself on the Munich residential real estate market through its clear focus on high-quality properties in good locations with concepts for superior target group requirements. JK Wohnbau AG focuses on business areas comprising the construction of new residential properties, and the privatisation of apartments, where existing properties are purchased, modernised and sold in individual residential units.

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