DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE resolves a capital increase against a contribution in kind for the acquisition of Logistikpark Leipzig GmbH

DEMIRE Deutsche Mittelstand Real Estate AG  / Key word(s): Capital Increase/Investment

19.05.2015 20:49

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DEMIRE resolves a capital increase against a contribution in kind for the
acquisition of Logistikpark Leipzig GmbH

Frankfurt/Main, 19 May 2015 - On 13 May 2015, the Executive Board of DEMIRE
Deutsche Mittelstand Real Estate AG ("DEMIRE", ISIN DE000A0XFSF0), with the
consent of the Supervisory Board, resolved to increase the Company's share
capital from authorised capital one time by a total of EUR 2,541,149.00
against a mixed contribution in kind and with the exclusion of shareholder
subscription rights.

M1 Beteiligungs GmbH, Berlin, has been admitted to subscribe to the new
shares in return for contributing a 94 percent interest in Logistikpark
Leipzig GmbH. Logistikpark Leipzig GmbH is the sole shareholder of a
logistics property in Leipzig (Logistikpark Leipzig). The determination of
the amount of the capital increase and the number of new DEMIRE shares to
be issued was based on a value of EUR 5.84 per DEMIRE share. In addition to
the shares, M1 Beteiligungs GmbH should receive a cash payment of around
EUR 19 million. The contribution, purchase and assignment agreement
governing the contribution in kind, is subject, among others, to the
approval of the bank financing Logistikpark Leipzig GmbH. Additional
details of the transaction have not been disclosed. Following the execution
of this capital increase and taking into account the capital increase
against contribution in kind to purchase Gutenberg-Galerie, which was
resolved by the Executive Board on 2 April 2015, M1 Beteiligungs GmbH will
hold an interest of 10.25% in DEMIRE's share capital.

Mr Günther Walcher, who is also a member of DEMIRE's Supervisory Board,
holds an indirect interest of 100% in M1 Beteiligungs GmbH. The conclusion
of the contribution, purchase and assignment agreement was preceded by a
structured bidding process in which DEMIRE prevailed. The former logistics
complex of Quelle (constructed in 1994) has total rentable space of around
184,000 sqm and is located on property of roughly 330.000 sqm situated
approximately 10 km north of Leipzig's city centre. The property consists
of around 164,000 sqm of warehouse space, almost 20,000 sqm of office
space, and at least 35,000 sqm of surrounding area as well as two areas for
expansion totalling about 38,000 sqm that already have building permits.
The logistics complex has a current occupancy rate of roughly 60 percent
and annual net rental income excluding utilities of approximately EUR 3.60
million. Based on its excellent location - near the trade fair centre and
the BMW plant - and due to the high demand for logistics properties in
Leipzig, the complex has substantial potential.

Despite the additionally agreed cash payment obligation, DEMIRE's purchase
of its first logistics property against the issue of shares strengthens its
equity base and cash flow and expands its commercial real estate portfolio
in line with the growth strategy of the Frankfurt-based real estate group.

The Executive Board


The information in this release contains forward-looking statements that
are subject to various risks and uncertainties. Such forward-looking
statements are based on current forecasts, expectations and estimates of
DEMIRE's Executive Board at the time of their publication. Such statements
constitute neither promises nor guarantees and are subject to various known
and unknown risks and uncertainties, some of which are beyond DEMIRE's
influence. These risks and uncertainties may lead to actual results
differing materially from statements that are mentioned herein. DEMIRE
accepts no obligation to update or adjust the forward-looking statements
contained in this release to reflect events or circumstances after the date
of this release.

DEMIRE Deutsche Mittelstand Real Estate AG
Investor Relations
Lyoner Straße 32
60528 Frankfurt am Main
Phone: +49 (0) 69-719 189 79 0
Fax: +49 (0) 69-719 189 79 11 

Investor Relations
GFEI Aktiengesellschaft
Lars Kuhnke
Phone: +49 (0) 511 4740 2310

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Language:     English
Company:      DEMIRE Deutsche Mittelstand Real Estate AG
              Lyoner Straße 32
              60528 Frankfurt am Main
Phone:        +49 (0)69  / 719 189 79 0
Fax:          +49 (0)69  / 719 189 79 11
ISIN:         DE000A0XFSF0
WKN:          A0XFSF
Listed:       Regulated Market in Frankfurt (General Standard); Regulated
              Unofficial Market in Berlin, Stuttgart
End of Announcement                             DGAP News-Service