Further information on the possible merger of DEMIRE Deutsche Mittelstand Real Estate AG with Fair Value REIT-AG

DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Real Estate/Merger

2015-08-07 / 07:22

Further information on the possible merger of DEMIRE Deutsche Mittelstand Real Estate AG with Fair Value REIT-AG

Frankfurt, 7 August 2015 - On 31 July 2015, DEMIRE Deutsche Mittelstand Real Estate AG ("DEMIRE") announced its intention to submit a voluntary public takeover offer to the shareholders of Fair Value REIT-AG ("Fair Value"). For the purpose of the merger, Fair Value and DEMIRE have signed a business combination agreement (BCA). The merger pursues the target to build the leading commercial player in German secondary locations.

From the perspective of both companies, the essential and value creating aspects of the merger are:

- Creating a leading EUR 1.0 billion commercial real estate player in Germany focused on secondary locations

- Levering integrated asset- and portfolio management towards combined economies of scale and portfolio optimisation

- Combining strong real estate sourcing networks and demonstrable integration track-record

- Defensive long-leased portfolio and strong tenant structure supportive of additional debt funding costs reduction

- Strengthening balance sheet profile supported by expected delivering trajectory towards an LTV of 50-60%

- Increasing capital markets presence and improved access to financing markets

- Implementation of "Prime-Standard" adequate corporate governance structures into combined company

The presentation on the merger of DEMIRE and Fair Value REIT can be found on DEMIRE's website under Investor Relations, Takeover Offer: http://www.demire.ag/en/investors/f34.php

The Executive Board

About DEMIRE Deutsche Mittelstand Real Estate AG

Leading holder of commercial real estate

DEMIRE Deutsche Mittelstand Real Estate AG is transforming itself into a leading holder of German commercial real estate. The core business activities of the Frankfurt/Main- headquartered real estate group consist of the acquisition, the management and the rental of commercial real estate and their further development, for example, through modification, modernisation or expansion, and increasing their value through their active portfolio management.

As of the end of July 2015, the commercial property portfolio consisted of more than 810,000 m2 of rentable space that mainly comprised office, logistics and retail properties. Annualised net rent excluding utilities amounts to approximately EUR 52.2 million. The portfolio's regional focus lies in Bavaria, North Rhine-Westphalia, Baden-Württemberg, Saxony, Hamburg and Bremen as well as in the Rhein-Main and Rhein-Neckar areas. The in-house asset, property and facility management ensures the optimum management and development of the holdings.

The DEMIRE real estate 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 real estate group's lean structure allows it to take action quickly and flexibly. 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.


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) 511 47 40 23 10
Email: ir@demire.ag

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384603  2015-08-07