Vienna, 2 May 2016 BUWOG AG: Hamburg to become third development location Purchase of an approximately 42,700 sqm land site in Hamburg-Bergedorf for residential project with over 1,000 units is the launch of development activities in Germany's second largest city BUWOG's development project pipeline volume increases to approx. EUR 2.5 billion As was announced ad hoc last Saturday, BUWOG Group has signed the purchase agreement for an approximately 42,700 sqm land site in Hamburg-Bergedorf. This not only consolidates the Property Development division, which is responsible for the planning and construction of new residential units, but expands it to include the location of Hamburg in addition to Vienna and Berlin, where BUWOG has long operated as a successful developer. BUWOG Group's strategy for Hamburg is oriented toward growth and sustainability. "For BUWOG, Hamburg is the ideal location for expanding our activities in property development. This step in a new German "big seven" city was planned by our teams long ago, and the project in Bergedorf has the exact significant size we have been aiming for to enter the Hamburg development market with an important residential project", says BUWOG CEO Daniel Riedl. "Our focus in Property Development now lies on the multimillion-inhabitant cities of Vienna, Berlin and Hamburg, three of the strongest cities in the German-speaking regions in terms of economy and growth. This land purchase increases the volume of our project pipeline to around EUR 2.5 billion. In addition to the attractive socio-demographic prospects, the choice of Hamburg as a new development location was also made as a result of the outstanding market expertise and contacts in the Hanseatic city which BUWOG has acquired through its previous Hamburg-related activities, particularly in Asset Management, administration and in sales", according to Riedl. In Hamburg BUWOG is already able to rely on local structures, as the company already has a subsidiary there. Following acquisition of the DGAG portfolio in 2014, BUWOG Group had around 2,900 units in Hamburg's surrounding areas, for instance in the cities of Norderstedt and Glinde. Then at the beginning of the year BUWOG acquired a portfolio of 245 units directly in the city of Hamburg (district of Hamburg-Harburg), and in property administration for third parties BUWOG has also been active in Hamburg for quite some time. In addition to the current local team, now the company is also establishing a new Hamburg development unit to also acquire and carry out further development projects in the Hanseatic city. Based on the current status of planning, the first Hamburg residential project involves a quarter featuring over 1,000 units. The estimated total investment costs for this come to around EUR 430 million. After obtaining the right to build, BUWOG estimates a construction period of around five years until completion of the new city quarter. The premises purchased is part of the "Schleusengraben" development area. It is named after a canal which runs along the property and links the Bille and Elbe rivers. The property is situated very centrally in the Hamburg district of Bergedorf – the centre is only about 300 metres away. The railway station with the S-Bahn commuter and regional rail connections is located in close proximity to the property. In Hamburg's overall momentum of growth and influx, the city is looking increasingly toward the east; the "Bergedorf axis" with its dynamic development projects and significant potential for space is benefiting enormously from this. "Bergedorf is planning a mixed urban quarter at this location. As a partner to Bergedorf, BUWOG will build primarily flats to own and to rent here. With the rental units for BUWOG Group's own portfolio, we ourselves ensure the investment portfolio's growth and are providing rental space, which is also so urgently needed in steadily growing Hamburg", Alexander Happ, Managing Director Property Development Germany of BUWOG Group, says with respect to further plans in Hamburg-Bergedorf. The construction of rental flats in the portfolio is also being increased in development in Berlin. "A central aspect of our planning in Bergedorf is to develop an energy-efficient and sustainable, showcase quarter – styled entirely on the basis of our projects in Vienna and Berlin", according to Happ. "This important step in growth is another building block in the strategy to strengthen BUWOG as an integrated property owner and residential property developer for the future and to increase shareholder value. As a result, BUWOG will become even more interesting for the capital market", says deputy CEO and CFO Andreas Segal. About BUWOG Group BUWOG Group is the leading German-Austrian full-service provider in the residential property business and now looks back on 65 years of expertise. Its property portfolio encompasses approximately 51,300 units and is distributed evenly throughout Austria and Germany. In addition to Asset Management, the entire value chain of the residential sector is covered by Property Sales and Property Development. The shares of BUWOG AG have been listed on the Frankfurt, Vienna and Warsaw stock exchanges since the end of April 2014. BUWOG has been carrying out its own development projects since its establishment in 1951. As a partner in the Austrian klima:aktiv pakt 2020, BUWOG Group is a pioneer in sustainable and energy- efficient construction and refurbishment. With award winning projects such as Oase22, Am Mühlgrund and the Kierling passive house, as a developer BUWOG also consistently pursues this approach with its developments in Berlin, for instance with the large-scale "52 Grad Nord" project, where a separate local heating network featuring a combined heat and power supply and a primary energy factor of 0 is being built for more than 700 units. For further information, please contact: Media Inquiries Germany: Investor Relations: Peter Dietze-Felberg Holger Lüth RUECKERCONSULT BUWOG AG T: +49 (0) 30 2844 987 – 62 T: +43 (0) 1 87828 1203 [email protected] [email protected] Media Inquiries Austria Thomas Brey M&B PR, Marketing, Publikationen T +43 (0) 1 233 01 23 15 M +43 676 542 39 09 [email protected] .