DGAP-Adhoc

DEMIRE acquires commercial real estate portfolio containing approximately 144,000 m² of rental space

DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Expansion/Real Estate

01.07.2015 09:18

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

---------------------------------------------------------------------------

DEMIRE acquires commercial real estate portfolio containing approximately
144,000 m² of rental space

- Net rent, excluding utilities (actual): roughly EUR 14.8 million

- All locations have long-term rental contracts with Deutsche Telekom

- Secured, long-term debt structure with high redemption

Frankfurt/Main, 01 July 2015 - With the consent of the Supervisory Board,
the Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG
("DEMIRE", ISIN DE000A0XFSF0) concluded a purchase agreement on 30 June
2015 to acquire a 94 percent interest in Germavest Real Estate S.á.r.l. In
the cities of Ansbach, Bonn, Flensburg, Freiburg, Regensburg and
Stahnsdorf, Germavest Real Estate S.á.r.l. has a commercial real estate
portfolio containing 143,788 m² of rental space as well as 1,171
underground and free-standing parking spaces. All of the 6 locations have
long-term rental contracts with Deutsche Telekom AG. The net annual rent,
excluding utilities and based on the properties' current full occupancy,
amounts to roughly EUR 14.8 million and will rise periodically based on a
contractually agreed fixed annual indexation. The largest property with
approximately 38,000 m² has a rental agreement spanning 10 years.

With the acquisition of Germavest Real Estate S.á.r.l., a long-term
financing structure should be taken over whose interest rate leads to a
reduction in DEMIRE's average interest rate. The financing will be repaid
by means of accelerated payments, which will lead to a sustainable increase
in DEMIRE's equity. Based on the portfolio's favourable return ratios,
DEMIRE expects an additional contribution to be made to the positive cash
flow of the entire Group portfolio.

The acquisition of the 6 properties enlarges the commercial real estate
portfolio in the context of the growth strategy of the Frankfurt-based real
estate group to now over 750,000 m² of space with annual rental income of
roughly EUR 47.6 million.

Further details of the transaction have not been disclosed.

The transaction is still subject to the existing financing being assumed by
DEMIRE.

The Executive Board

Disclaimer

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.

Contact
DEMIRE Deutsche Mittelstand Real Estate AG
Investor Relations
Lyoner Straße 32
60528 Frankfurt am Main
Phone: [phone]
Fax: [phone]
[e-mail]
www.demire.ag

Investor Relations
GFEI Aktiengesellschaft
Lars Kuhnke
Phone: [phone]
[e-mail]


01.07.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

---------------------------------------------------------------------------

Language: English
Company: DEMIRE Deutsche Mittelstand Real Estate AG
Lyoner Straße 32
60528 Frankfurt am Main
Germany
Phone: +49 (0)69 / 719 189 79 0
Fax: +49 (0)69 / 719 189 79 11
E-mail: [e-mail]
Internet: www.demire.ag
ISIN: DE000A0XFSF0
WKN: A0XFSF
Listed: Regulated Market in Frankfurt (General Standard); Regulated
Unofficial Market in Berlin, Stuttgart

End of Announcement DGAP News-Service

---------------------------------------------------------------------------