DEMIRE sells non-core portfolio significantly above carrying amount

Langen, January 25, 2017 - DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) sold a portfolio of 84 non-strategic properties and part of a property located in Darmstadt for a total of EUR 21.6 million. Most of the properties are decentrally located and currently leased to Deutsche Post DHL Group. The properties were each sold at values below EUR 500,000. The property in Darmstadt is currently leased to Deutsche Telekom. The total sale price for the properties exceeded the properties' fair value by more than EUR 3 million 'and roughly 16 % above the current market value - a further sign of DEMIRE's conservative accounting. The property sales will be recognised in the 2016 financial year. The transaction resulted in a significant decline in the number of properties held by the DEMIRE Group, bringing the total from 178 to 94. The sale also underlines the Executive Board's focus on selected locations and real estate projects.

"This transaction demonstrates that we are committed to our strategy of divesting non-core properties as part of our active portfolio management", says Prof. Andreas Steyer, Speaker of the Executive Board. The targeted optimisation of our holdings is progressing ahead of schedule. Proceeds from these transactions will be reinvested in acquisitions that are in tune with our strategy. Each investment is expected to amount to between EUR 10 and 50 million".

This transaction also further reduces the complexity of DEMIRE's portfolio, which in turn lowers the property management and administrative costs. The sale will also result in a continued improvement in our EPRA vacancy rate (declined from 12.8 % to 10.4 % as of December 31, 2015; pro forma 2016: 10.4 %).

The Management Board

Contact information

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

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About DEMIRE - First in secondary locations

DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up and coming areas bordering German metropolitan areas. As at September 30, 2016, DEMIRE held real estate with a market value of EUR 985 million. As at the reporting date, annual contractual rents had been firmly agreed upon in the amount of EUR 75.5 million for an average term of 5.2 years.

DEMIRE aims to maintain its corporate organisation as lean as possible, although it still believes that economies of scale and portfolio optimisation are best achieved by having its own in-house asset, property and facility management. This safeguards the Company's business expertise and, equally important, allows the Company to maintain direct contact with the customer.

DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard segment of the Deutsche Börse in Frankfurt.