DEMIRE: Capital increase successfully completed to finance potential acquisition of several properties and/or portfolios of properties

• Issuance of 34,512,703 new ordinary bearer shares, representing approx. 47% of the share capital (pre-capital increase)
• New Shares priced at EUR 4.35
• Issue gross proceeds of approx. EUR 150 million to finance potential acquisitions with an estimated aggregate gross purchase price of up to approx. EUR 350 million
• Four office properties worth EUR 167 million have been already secured

Langen, November 13, 2018 - DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) today announces the completion of its capital increase from authorized capital against cash contributions announced on October 25, 2018. The number of the company's shares has increased by 34,512,703, from 73,085,728 to 107,598,431 through the public offering of new shares via subscription rights. The gross proceeds amount to approximately EUR 150.1 million. The subscription price was EUR 4.35 per share, and 54.83% of the subscription rights were exercised. The remaining new shares that were not subscribed by existing shareholders will be sold to AEPF III 15 S.à r.l., taking its holding of the company's share capital to approximately 64.07%.

The gross proceeds raised through the capital increase - after deduction of fees and expenses in connection with the rights issue - will be used to finance further portfolio growth, including the acquisition of four office properties worth EUR 167 million that have already been secured. The remainder of the proceeds will be used to fund further acquisitions.

The consummation of the capital increase was entered into the commercial register of the local court of Frankfurt am Main on November 12, 2018. The inclusion of the new shares in the existing quotation of the company's shares on the Frankfurt Stock Exchange and the sub-segment of the regulated market of the Frankfurt Stock Exchange with additional post-admission obligations (Prime Standard) begins today.
 
Contact Details
DEMIRE Deutsche Mittelstand Real Estate AG
Robert-Bosch-Strasse 11
D-63225 Langen
Phone: +49 (0) 6103 - 372 49 - 0
Fax: +49 (0) 6103 - 372 49 - 11
ir@demire.ag
www.demire.ag
 
 
Additional Information
This release does not constitute an offer of securities for sale or a solicitation of an offer to purchase securities. Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, any offer or commitment whatsoever in any jurisdiction. The offer was made solely by means of, and on the basis of, a published securities prospectus and the related supplement (the "Prospectus"). The Prospectus was published and available free of charge from DEMIRE Deutsche Mittelstand Real Estate AG, Robert-Bosch-Straße 11, 63225 Langen, or on the Company's website (http://www.demire.ag/en/investor-relations/).
 
The securities of the Company may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The securities of the Company have not been, and will not be, registered under the Securities Act.
 
 
About DEMIRE Deutsche Mittelstand Real Estate AG
 
DEMIRE - First in Secondary Locations
 
DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up-and-coming locations bordering German metropolitan areas. The company's specific forte is its focus on these second-tier cities - its claim being "First in Secondary Locations" - and on a range of assets that appeals to both internationally active and regionally rooted tenants. Having expanded rapidly between 2013 and 2016 both by buying single properties and by acquiring equity interests, DEMIRE held a portfolio with a combined lettable area of around 1 million sqm and a fair market value of more than EUR 1.1 billion by the end of the half-year 2018.
 
The portfolio focus on office, retail and logistics assets results in exactly the kind of risk/reward structure that DEMIRE considers appropriate for the business line of commercial real estate. The Company puts a premium on long-term contracts with solvent tenants in anticipation of stable and sustainable rent revenues. DEMIRE has set itself the goal to keep optimising its corporate structure. To this end, it pursue an active property management approach out of the conviction that it is the best way to achieve economies of scale and portfolio optimisations.