TAG Immobilien Joins German Mid-Cap Index After Value Climbs

TAG Immobilien AG (TEG), Germany’s third- largest publicly traded residential landlord, was admitted to the MDAX Mid-Cap Index after its market value rose 66 percent this year. The shares rose as much as 1.9 percent.

TAG, based in Hamburg, will replace engine maker Deutz AG (DEZ) in the 50-member index for medium-sized companies, Deutsche Boerse AG (DB1) said in a statement after the market closed yesterday.

The residential and office landlord had been the largest German real-estate company not included in the index. The company expanded its market value to 769 million euros ($970 million) through the 160 million-euro purchase of DKB Immobilien AG in March and a share sale that raised 127 million euros.

“Being a member of the MDAX lets TAG address a bigger investor community, not just in Germany, but on a pan-European basis,” said Kai Klose, an analyst at Berenberg Bank. Joining the index will also make it easier for TAG to raise capital to finance future acquisitions, Klose said.

TAG rose about 21 cents, or 2.7 percent, to 7.98 euros at the 5:30 p.m. close in Frankfurt, giving the company a market value of 789 million euros. The shares have advanced more than 30 percent this year.

Deutsche Boerse decides which stocks to include in its indexes based on criteria such as market value and trading volume. TAG has the 35th highest market value among German medium-sized companies excluding technology firms and ranks 52nd in 12-month trading volume. The stock will begin trading on the MDAX on Sept. 24.

German residential real estate companies listed on the MDAX include Deutsche Wohnen AG (DWNI), Gagfah SA (GFJ) and GSW Immobilien AG. (GIB)

To contact the reporter on this story: Dalia Fahmy in Berlin at dfahmy1@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.

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