DGAP-Adhoc

WESTGRUND Aktiengesellschaft decides to issue Convertible Bonds 2014/2016

WESTGRUND Aktiengesellschaft / Key word(s): Bond

03.04.2014 15:08

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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WESTGRUND Aktiengesellschaft, Berlin, announces that today its management
board has decided with the approval of the supervisory board to issue bonds
with conversion rights and mandatory conversion at the end of term with a
principal amount of EUR 19,860,000.00.

The bonds are expected to be issued on 23 April 2014 and the end of term
will be on 22 April 2016. During the term of the bonds, the bondholders
have the vested right to convert the bonds within the conversion windows
into non-par value shares in WESTGRUND Aktiengesellschaft corresponding to
a fraction of the share capital of EUR 1.00 each. The bonds will bear
interest at the rate of 5% per annum on their principal amount. The
conversion ratio is EUR 3.70 (nominal) to one share.

WESTGRUND Aktiengesellschaft has increased its portfolio to 7,000 apartment
units after acquisition of 1,228 apartments in December 2013 und 803
apartment units in Januar 2014 financed with the proceeds of the latest
capital increases. The proceeds of the issue of the convertible bonds shall
especially serve the financing of further growth by acquisitions and for
general business purposes. Due to this measure the company expects to be in
a good position to advance the expansion of its portfolio in 2014 keeping
in line with an adequate structure of re-financing.

The decision of the management board to issue the convertible bonds is
based on the authorisations of the shareholders' meetings on 19 December
2011 and on 24 August 2012. The shareholders of WESTGRUND
Aktiengesellschaft will be granted indirect subscription rights for up to
19,860,000 convertible bonds with a nominal value of EUR 1.00 each. The
subscription ratio is 4:3 which means that the shareholders are entitled to
receive 3 bonds for 4 shares each bond for a subscription price of EUR
1.00. Only an integer number of bonds may be obtained. In accordance with §
1 subseq. 2 no. 4 German Securities Prospectus Act, the bonds will be
offered to the shareholders without issuing a securities prospectus.

In this specific case, the company enables new investors an investment in
WESTGRUND Aktiengesellschaft as several major shareholders have transferred