Ad hoc Mitteilung

DEMIRE issues mandatory convertible bond against contribution in kind

Ad hoc announcement according to section 15 WpHG

Frankfurt/Main, 13. May 2015 – The Executive Board and Supervisory Board of DEMIRE Deutsche Mittelstand Real Estate AG (“DEMIRE”, ISIN DE000A0XFSF0) resolved today to issue a mandatory convertible bond with a volume of EUR 15 million against contribution in kind and by excluding subscription rights. In the context of the transaction, an investor in the 2014/2019 corporate bond (Open Market of the Frankfurt Stock Exchange; ISIN: DE000A12T135/ WKN: A12T13; Volume EUR 100 million) will subscribe to the new mandatory convertible bond to be issued with a term of three years (bullet bond maturing 2018) by contributing fractional bonds from the 2014/2019 corporate bond. The bonds carry an interest coupon of 2.75% per annum starting from the date of issue and
may be converted into shares at an initial conversion price of EUR 5.00 per share, subject to adjustments, as of 1 September 2015. The mandatory convertible bond carries a conversion obligation of the respective creditor at the maturity of the bond.

This bond will improve the refinancing structure and equity ratio of the DEMRE real estate group because the mandatory convertible bond will be considered as equity and the claim from the fractional bonds contributed from the 2014/2019 corporate bond will lapse upon contribution.

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 publications. 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.

About DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE Deutsche Mittelstand Real Estate AG
Robert-Bosch-Straße 11
63225 Langen
phone: +49 (0) 6103 – 372 49-0
fax: +49 (0) 6103 – 372 49-11
email: ir_at_demire.ag
Web: www.demire.ag

Michael Tegeder
Head of Investor Relations
& Corporate Finance

phone: +49 (0) 6103 37249 44
fax: +49 (0) 6103 37249 11
email: ir_at_demire.ag

Feldhoff & Cie. GmbH
Herr Markus Heber
phone: +49 69 26 48 677 – 19
email: mh_at_feldhoff-cie.de