Ad hoc Mitteilung

DEMIRE resolves on capital increase against contribution in kind to acquire the Gutenberg-Galerie in Leipzig

Publication of an ad hoc announcement according to section 15 of the WpHG

Frankfurt/Main, 02. April 2015 – The Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG (“DEMIRE”, ISIN DE000A0XFSF0) resolved today on an increase of the Company’s share capital from authorised capital against a contribution in kind once by an amount of EUR 2,182,567.00 from EUR 20,017,811.00 to EUR 22,200,378.00 and by excluding the subscription rights of shareholders. The resolution is still subject to the approval of the Supervisory Board and the registration of the Authorized Capital I / 2015 as resolved by the General Meeting of DEMIRE on March 6, 2015 with the commercial register of DEMIRE.

Ketom AG, Switzerland, was admitted to subscribe to the capital increase in return for contributing a 94 percent interest in the property company Sihlegg Investments Holding GmbH, Switzerland, as well as all claims resulting from a shareholder loan granted by Ketom AG to the property company. To calculate the amount of the capital increase and the number of new shares to be issued by DEMIRE, a value of EUR 4.028 per share of DEMIRE was applied. With regard to the further contractual details the parties agreed on confidentiality.

The property company owns the office and retail property Gutenberg-Galerie in Leipzig. The property is located near the centre of Germany’s eleventh largest city and has roughly 20,750 sqm of rentable space of which approximately 11,900 sqm office space. The building complex, erected in 1994, also contains a 4-star hotel with 122 rooms. With a current vacancy rate of around 30 percent the net rental income excluding utilities amounts to approx. EUR 1.3 million p.a.

The acquisition of commercial real estate against the issue of shares strengthens the Company’s equity base and its cash flow and expands the real estate portfolio as part of the growth strategy pursued by the Frankfurt-based real estate group.

After registration of the execution of the capital increase with the commercial register, Ketom AG will hold approximately 9.83 percent in the share capital of DEMIRE.

End of announcement

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