DGAP-News: Capital increase for further growth

DGAP-News: InCity Immobilien AG / Key word(s): Corporate Action
Capital increase for further growth

02.12.2010 / 14:39

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InCity Immobilien AG: Capital increase for further growth

  - Share capital to be increased by up to 50% to a maximum of EUR
    5,625,000

  - Subscription price: EUR 2.50 per no-par share 

  - Expected gross revenues of up to EUR 4,687,500

  - Subscription period from 7 December 2010 to 21 December 2010

Cologne, 2 December 2010 - With the approval of the Supervisory Board, the
Executive Board of InCity Immobilien AG (ISIN DE 000A0HNF96 / WKN A0HNF96)
resolved to increase the share capital of the company by up to EUR
1,875,000 from EUR 3,750,000 to a maximum of EUR 5,625,000 in return for
cash contributions by utilising authorised capital in accordance with
Section 4, paragraph 3 of the Articles of Association and issuing up to
1,875,000 new no-par bearer shares (no-par shares), each with a EUR 1.00
stake in share capital.

The new shares with full entitlements to dividends for financial year 2010
are being offered to the shareholders of the company for subscription at a
ratio of 2:1. The subscription right for residual amounts is excluded. The
subscription price is EUR 2.50 per no-par share. Gross revenues of up to
EUR 4,687,500 less transaction fees will be used for financing the further
growth of InCity Immobilien AG.

The subscription period is expected to start at 0:00 hours on 7 December
2010 and end at 24:00 hours on 21 December 2010. Subscription rights will
not be traded in public and a corresponding public offer will not be made.
The new shares will be listed on the Entry Standard (part of the Open
Market with additional demands on transparency) of Deutsche Börse AG after
the capital increase has been entered into the commercial register.

Close Brothers Seydler Bank AG, Frankfurt/Main, will be the sole lead
manager and sole bookrunner of the transaction. Any shares unplaced in the
subscription offer will be sold as part of a private placement for
institutional investors in Germany and other European countries at a price
equal to the subscription price.

The company plans to publish the subscription offer on 6 December 2010 in
the electronic Federal Gazette (Bundesanzeiger).

'The streamlining of our company went according to plan and we have been
concentrating on quickly developing the new operating business since the
beginning of October. Our new type of project finance and professional
project controlling have met with the approval of many renowned property
project developers. We are already assessing such a large number of new
projects that we are very optimistic about concluding further attractive
agreements shortly. At the same time, we will accredit new InCity partners
in Germany's most important growth regions. We will therefore invest the
financial means from the capital increase mainly into high-profit projects,
thus speeding up the achievement of our dynamic growth targets,' said
Jürgen Oppelt, CEO of InCity Immobilien AG.

'We decided to implement a capital increase now despite the current share
price. In our opinion, the subscription at a fixed price is an attractive
offer that enables all shareholders to participate in the future
development of the company at favourable conditions.

Our majority shareholder DYVA Holding AG has already announced that it will
be using its subscription rights from its roughly 30% share in InCity
Immobilien, once again reiterating its long-term interest in our company,'
commented Heiko C. Frantzen, CFO of InCity Immobilien AG.


About InCity Immobilien AG 
InCity Immobilien AG specialises in designing and realising high-quality
properties. The company pools the experience from more than 250 projects
for owners and investors. It develops and markets high-end projects with
high added value and short lead times. Accredited InCity partners with
regional know-how provide continuous and nation-wide access to attractive
projects. Within the scope of this cooperation, InCity's activities focus
on providing innovative project finance and property project controlling.
The company uses intelligent realisation concepts to minimise typical risks
encountered by project developers and at the same time maximise earnings.
It creates exclusive, profitable properties in Germany's largest growing
cities. InCity Immobilien AG is committed to taking a responsible approach
with regard to society and environment. The Company expresses this belief
by participating in UN Global Compact, the international initiative of the
United Nations for supporting social and environmental principles. For
further information, please go to www.incity.ag.

Publisher's information:
This press release constitutes neither an offer to sell nor an invitation
to submit an offer to buy or to subscribe to securities. It also does not
constitute a securities prospectus. This press release and all information
contained therein must not be directly or indirectly distributed in or into
the USA, Canada, Australia or Japan. The new shares of InCity Immobilien AG
and their corresponding subscription rights are and will not be registered,
neither in accordance with the regulations of the U.S. Securities Act of
1993 nor the securities regulatory bodies of individual US states. They may
therefore neither be offered nor sold in the USA nor directly or indirectly
supplied to this country.


Company and IR contact
InCity Immobilien AG
Mozartstrasse 1
50674 Cologne, Germany
www.incity.ag

Lars Kuhnke
Phone: +49 (0) 221 95 27 57 55
l.kuhnke@incity.ag


End of Corporate News


02.12.2010 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.

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Language:    English                                              
Company:     InCity Immobilien AG                                 
             Mozartstr. 1                                         
             50674 Köln                                           
             Deutschland                                          
Phone:       +49 (0)221 952757-55                                 
Fax:         +49 (0) 221 95 27 57 57                              
E-mail:      info@incity.ag                                       
Internet:    www.incity.ag                                        
ISIN:        DE000A0HNF96                                         
WKN:         A0HNF9                                               
Listed:      Freiverkehr in Berlin, Düsseldorf, Stuttgart; Entry  
             Standard in Frankfurt                                
 
 
End of News    DGAP News-Service  
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