Luxembourg, December 19, 2006 – GAGFAH S.A. (Frankfurt Stock Exchange: GFJ) today announced that its Board of Directors has declared a quarterly cash dividend of €0.17 per share for the quarter ending 31 December 2006 and a quarterly cash dividend of €0.17 per share for the quarter ending 31 March 2007.

The dividend of €0.17 per share for the fourth quarter 2006 is payable on 15 January 2007 to holders of record of GAGFAH S.A. shares on 12 January 2007 and the dividend of €0.17 per share for the first quarter 2007 is payable on 13 April 2007 to holders of record of GAGFAH S.A. shares on 30 March 2007.

The Shares of GAGFAH S.A. will be ex-dividend for the fourth quarter 2006 dividend on 15 January 2007 and for the first quarter 2007 dividend on 2 April 2007.

About GAGFAH S.A.

GAGFAH S.A. is a joint stock corporation incorporated in Luxembourg. GAGFAH's core business is the ownership, management and acquisition of a geographically diversified and well maintained residential property portfolio throughout Germany. With a portfolio of over 150,000 apartments located throughout Germany, GAGFAH is the largest German-listed residential property company.