DEMIRE: Major shareholders convert 2013/2018 convertible bond into shares

Langen, 13. June 2018 - Funds managed by affiliates of Apollo Global Management, LLC(NYSE: APO) and the Wecken Group, the two major shareholders of DEMIREDeutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0), convert convertible bonds with a total volume of EUR10.27 million prior to their maturity at the end of December 2018 into DEMIREshares. As a result, the share capital of DEMIREwill increase in June from the current level of around EUR62.8 million to around EUR73.1 million. Taking into account the current conversion of the convertible bonds, the conversion of the mandatory convertible bond into shares in May 2018 and the 10% capital increase registered in April 2018 after the last balance sheet date, the net loan-to-value ratio (net-LTV) decreases from 58.1% as of 31 March 2018 to around 55% on a pro forma basis.

Ralf Kind, CEO/CFO of DEMIRE, comments: 'With our two major shareholders exchanging their convertible bonds for shares, we are further simplifying our financing structure and coming significantly closer to our goal of reducing the net loan-to-value ratio to around 50%.'

The 2013/2018 convertible bond (ISIN: DE000A1YDDY4) has an issue volume of EUR11.3 million and matures on 30 December 2018. The interest coupon for the convertible bond is 6%. The conversion of the mandatory convertible bonds amounting to EUR15.0 million into three million new shares already took place upon their maturity on 22 May 2018.

DEMIRE2.0 - Strategy for the Company's Next Growth Phase:
The 'DEMIRE 2.0' strategy signifies the Company's next growth phase. The implementation of an integrated action plan - which, among other things, seeks to reduce the financing costs, optimise costs and to streamline the Group structure - is a cornerstone of the plan to expand the current portfolio to a volume of EUR2 billion.

The business model's focus remains on the acquisition of commercial property in German secondary locations. The cost base will continue to be optimised under this programme through permanent improvements in efficiency and economies of scale in real estate management resulting from the Company's growth. Further optimisation of the financing mix and, specifically, continuous examination of potential refinancing options in the debt and equity markets is expected to bring down the average interest costs and to lower the loan-to-value ratio down to around 50% in the medium term.

In addition to increasing its market capitalisation, DEMIREalso aims to position its risk profile in the 'investment grade' category to secure sustainable long-term financing on favourable terms with a view to future growth. DEMIRE's anchor shareholders back the DEMIRE2.0 strategy and intend moreover to support the growth of DEMIRE.