DEMIRE closes the acquisition of a portfolio with total space of approximately 46,000 sqm

- Portfolio with net rental income of more than EUR 5.1 million; almost fully occupied

- Review 2014: Establishment of a portfolio with space of more than 340,000 sqm and EUR 25.75 million in actual net rental income (excluding utilities)

- Outlook 2015: Consistent expansion of both the Company and the portfolio

Frankfurt/Main, December 23, 2014 - DEMIRE Deutsche Mittelstand Real Estate AG ("DEMIRE", ISIN DE000A0XFSF0) announces the closing of a real estate portfolio acquisition disclosed in May 2014 and the purchase of an additional property (see ad hoc announcement of May 21, 2014). The commercial real estate portfolio contains eight properties located in Cologne, Bonn, Leverkusen, Wuppertal, Hamburg, Schwerin, and Wismar. The portfolio's properties are almost fully occupied with 80 percent of the space utilised as office space. The remaining space is occupied by retail businesses, medical practices, or used for warehousing. With total space of approximately 46,000 sqm, the portfolio generates annual net rental income (excluding utilities) of EUR 5.1 million. The debt portion of financing was brokered by the financial advisory firm BF.direkt AG. Details regarding the purchase price, which lies in the mid double-digit million euro range, were not disclosed.

Andreas Steyer, Member of the Executive Board, explains: "With this acquisition, we have initiated the realignment of the Group in 2014 as a holder of German commercial real estate. DEMIRE now owns a portfolio containing space totalling more than 340,000 sqm and generating annual actual net rental income (excluding utilities) of EUR 25.75 million. This excellent beginning makes us confident that the DEMIRE Group will be able to achieve continued strong growth in 2015. We will continue to examine all refinancing options available to us as a publicly listed company in 2015 and pursue them as necessary as we have done in the past twelve months during which we have raised more than EUR 61 million on the capital markets through the issuance of a bond and a convertible bond. Independent of financing, our primary focus in 2015 will remain the generation of positive cash flows and the achievement of sustainable returns after acquisitions."

"The year 2014 was not only marked by the expansion of our core portfolio, but also by the development of our corporate structure. Now the focus will be aimed at further strengthening our human resources. Establishing our intra-group real estate management will also be one of the key tasks in financial year 2015. We consider real estate management and the comprehensive management of our properties to be critical in our ability to continuously benefit from the return opportunities presented by the broad range of offers in the German commercial real estate market", explained Markus Drews, also a Member of the Executive Board of DEMIRE.

The Executive Board

About Deutsche Mittelstand Real Estate

DEMIRE Deutsche Mittelstand Real Estate AG is a Frankfurt/Main headquartered real estate Group with a clear focus on commercial real estate in Germany.

The Group pursues a buy-and-hold-strategy combined with active portfolio management. It is concentrated on both the value-added and core-plus investment approaches. The combination of these two approaches offers a balanced risk-return ratio and attractive opportunities.

The shares of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN DE000A0XFSF0) are listed in the regulated market (General Standard Segment) of the Frankfurt Stock Exchange.

Contact

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
Email: ir@demire.ag
Web: www.demire.ag

Investor Relations
GFEI Aktiengesellschaft
Lars Kuhnke
Phone: +49 (0) 69 743 037 00
Email: ir@demire.ag