DEMIRE Deutsche Mittelstand Real Estate AG: Issuance of a 6.00% Convertible Bond 2013/2018

DEMIRE Deutsche Mittelstand Real Estate AG  / Key word(s): Bond/Corporate Action

09.12.2013 16:46

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.


Frankfurt/Main, December 9, 2013 - On December 9, 2013, the Executive Board
of DEMIRE Deutsche Mittelstand Real Estate AG ('DEMIRE' or 'Company', ISIN
DE000A0XFSF0) with the consent of the Supervisory Board, resolved to
utilise its authorisation for the issuance of a convertible bond, pursuant
to the resolution passed at the Annual General Meeting on October 23, 2013
and to issue convertible bonds with a total nominal amount of up to EUR

A maximum of 1,375,250 fractional convertible bonds with a nominal value of
EUR 1.00 each will be issued excluding the subscription rights of
shareholders. Shareholders of DEMIRE will be granted subscription rights
for up to 9,924,750 fractional convertible bonds with a nominal value of
EUR 1.00 each.

The conversion ratio was set at 7:5, meaning every 7 shares of DEMIRE
entitle the holder to acquire 5 fractional convertible bonds, each with a
nominal amount of EUR 1.00 at an issuance price of EUR 1.00 each.
Proportional rights for the fractional convertible bonds will not be
granted. The Company has already received a subscription request from one
investor for a substantial amount as well as letters of intent from
shareholders willing to transfer their subscription rights. The Company
intends to place the fractional convertible bonds, which are not subject to
subscription rights, as well as the fractional convertible bonds
originating from the transferred subscription rights with this investor.
The investor also agreed to subscribe for any fractional convertible bonds
that were not subscribed to during the subscription offer. The trading of
subscription rights is not provided for.

Fractional convertible bonds which have not been directly subscribed for
with the Company shall be offered by way of an indirect subscription offer
to the persons entitled in the period from December 11, 2013 to December
27, 2013. It is planned that Close Brothers Seydler Bank AG,
Frankfurt/Main, will be commissioned to carry out the subscription offer.
The publication of the respective subscription offer in the German Federal
Gazette is expected on December 10, 2013.

The convertible bonds give the owners the right to convert the bonds into a
maximum of 11,300,000 ordinary bearer shares of DEMIRE Deutsche Mittelstand
Real Estate AG. The initial conversion price amounts to EUR 1.00 per share.
The convertible bonds carry an interest rate of 6.00% per annum on their
nominal amount starting on December 30, 2013 and have a term until December
30, 2018. The inclusion of the convertible bonds in the Regulated
Unofficial Market (Open Market) of the Frankfurt Stock Exchange is being
pursued under ISIN DE000A1YDDY4. The date of issue is December 11, 2013.

Following the conversion, the shares will originate from DEMIRE's
contingent or authorised capital, at the Company's discretion.

The Company intends to use the funds raised by the issuance of the
convertible bonds to improve its financial strength and to acquire German
real estate investments in line with its new strategy which is focused on
the German real estate market.

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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:       Regulierter Markt in Frankfurt (General Standard);
              Freiverkehr in Berlin, Stuttgart
End of Announcement                             DGAP News-Service