Ad hoc Mitteilung

DEMIRE resolves a capital increase against a contribution in kind for the acquisition of Logistikpark Leipzig GmbH

Ad hoc announcement according to section 15 WpHG

Frankfurt/Main, 19. May 2015 – On 13 May 2015, the Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG (“DEMIRE”, ISIN DE000A0XFSF0), with the consent of the Supervisory Board, resolved to increase the Company’s share capital from authorised capital one time by a total of EUR 2,541,149.00 against a mixed contribution in kind and with the exclusion of shareholder subscription rights.

M1 Beteiligungs GmbH, Berlin, has been admitted to subscribe to the new shares in return for contributing a 94 percent interest in Logistikpark Leipzig GmbH. Logistikpark Leipzig GmbH is the sole shareholder of a logistics property in Leipzig (Logistikpark Leipzig). The determination of the amount of the capital increase and the number of new DEMIRE shares to be issued was based on a value of EUR 5.84 per DEMIRE share. In addition to the shares, M1 Beteiligungs GmbH should receive a cash payment of around EUR 19 million. The contribution, purchase and assignment agreement governing the contribution in kind, is subject, among others, to the approval of the bank financing Logistikpark Leipzig GmbH. Additional details of the transaction have not been disclosed. Following the execution of this capital increase and taking into account the capital increase against contribution in kind to purchase Gutenberg-Galerie, which was resolved by the Executive Board on 2 April 2015, M1 Beteiligungs GmbH will hold an interest of 10.25% in DEMIRE’s share capital.

Mr Günther Walcher, who is also a member of DEMIRE’s Supervisory Board, holds an indirect interest of 100% in M1 Beteiligungs GmbH. The conclusion of the contribution, purchase and assignment agreement was preceded by a structured bidding process in which DEMIRE prevailed. The former logistics complex of Quelle (constructed in 1994) has total rentable space of around 184,000 sqm and is located on property of roughly 330.000 sqm situated approximately 10 km north of Leipzig’s city centre. The property consists of around 164,000 sqm of warehouse space, almost 20,000 sqm of office space, and at least 35,000 sqm of surrounding area as well as two areas for expansion totalling about 38,000 sqm that already have building permits. The logistics complex has a current occupancy rate of roughly 60 percent and annual net rental income excluding utilities of approximately EUR 3.60 million. Based on its excellent location – near the trade fair centre and the BMW plant – and due to the high demand for logistics properties in Leipzig, the complex has substantial potential.

Despite the additionally agreed cash payment obligation, DEMIRE’s purchase of its first logistics property against the issue of shares strengthens its equity base and cash flow and expands its commercial real estate portfolio in line with the growth strategy of the Frankfurt-based real estate group.

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 publication. 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