Heliad invests Euro 4 million in a renowned team in the specialist segment of shopping centre development via TKN Real Estate Solutions AG; Capital-efficient business model with particular focus on high-growth East European markets

Heliad Equity Partners GmbH & Co. KGaA / Miscellaneous/Miscellaneous
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.

Heliad, a publicly listed private equity company, has acquired a shareholding in TKN Real Estate Solutions AG ('TKN'), Grünwald, thus raising the number of its major portfolio companies to twelve. Around one third of the company was acquired for a sum of Euro 4 million. TKN specialises in the planning, development and marketing of shopping centres for acquisition by institutional investors and high net worth private investors (family offices). Alongside individual projects in Germany, the company has a special geographic focus on East European markets. With a secured gross rental area of 140,000 m², TKN is, for example, already the largest developer of shopping centres in the Croatian market.
TKN’s success and its dynamic development are based on the one hand on its combination of superb management competence and experience in the specialist shopping centre segment and on the other hand on the highly attractive East European markets, which are currently not yet developed in this segment. Unlike traditional residential and commercial real estate, the shopping centre segment is not linked to prevalent market rental rates and indices, but rather to the retail sales to be generated at the location, which are dependent for example on the sector and product range involved. A further characteristic of this segment is that the tenants are already involved at an early stage of construction, enabling them to closely accompany the fitout of the rental areas in line with their specific requirements. This facilitates the conclusion of advance rental agreements, thus increasing budgeting reliability, reducing risk and making it considerably easier to sell the project to investors.
TKN’s two main projects in the East European market are currently being implemented in Split and Zagreb. The project in Split involves a shopping centre at the main traffic intersection in the inner city. With a rentable surface of approx. 50,000 m² and an investment volume of more than Euro 250 million, this constitutes the first large shopping centre in Split. TKN has also succeeded in securing a superb location in Zagreb in the vicinity of the airport and directly next to Croatia’s busiest road. The volume of this project amounts to more than Euro 300 million, with a planned surface of approx. 70,000 m². Construction work on both projects is scheduled to begin in the first half of 2008. In Germany, together with an equity fund managed by JP Morgan, TKN is currently implementing a shopping centre in Langenfeld with a volume of approx. Euro 45 million. Further shopping centre projects in Germany and Eastern Europe are currently in the preparation stage.
+++ About Heliad
Heliad is a publicly listed investment company that focuses on companies in predominantly German-speaking countries. It invests in profitable, owner-run companies that are undergoing a strong growth phase or that are in a special situation. Its goal is to generate an above-average risk/return ratio for its shareholders. With Heliad, investors therefore participate strongly in the growth prospects of traditional German SMEs as well as in upcoming German technology companies.

Heliad’s portfolio companies currently have more than 3,700 employees and generate combined annual sales of more than Euro 350 million.
Further information about the company can be found at www.heliad.de.

Heliad Equity Partners GmbH & Co. KGaA
Grueneburgweg 18
60322 Frankfurt am Main

Alexander Mitsch
Chief Financial Officer
Tel.: +49 (0) 69 71 91 59 65 28
E-Mail: alexander.mitsch@heliad.de

DGAP 13.08.2007 

Language:     English
Issuer: Heliad Equity Partners GmbH & Co. KGaA               Grüneburgweg 18
              60322 Frankfurt am Main
Phone:        +49 (0)69 719 15 965 0
Fax:          +49(0)69 719 15 965 11
E-mail:       info@heliad.de
Internet:     www.heliad.de
ISIN:         DE0006047293
WKN:          604729
Listed: Geregelter Markt in Frankfurt (Prime Standard); Freiverkehr               in Berlin, München, Stuttgart
End of News DGAP News-Service