DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Capital Increase 11.08.2016 10:40 Disclosure of an inside information according to Article 17 MAR, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- THIS ANNOUNCEMENT IS NOT FOR DISTRIBUTION, PUBLICATION OR TRANSMISSION IN THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA. DEMIRE resolves cash capital increase by 10 % Frankfurt/Main, August 11, 2016 - The Executive Board and the Supervisory Board of DEMIRE Deutsche Mittelstand Real Estate AG ("DEMIRE", ISIN DE000A0XFSF0) today resolved to increase the Company's share capital up to an amount of EUR 4,930,722.00 through the partial use of the available authorised capital (Authorised Capital I/2016) against contribution in cash by issuing up to 4,930,722 new no-par value ordinary bearer shares (no-par value shares) with a notional interest in the share capital of EUR 1.00 per share. The issue price of the new shares is EUR 3,45. Shareholder subscription rights were excluded. The new shares are entitled to dividends as of January 1, 2016. The shares will be offered to selected institutional investors in a private placement. The financial service provider commissioned by the Company has provided DEMIRE with a guarantee to ensure the full placement of the capital increase. Following the completed execution and registration of the capital increase, the Company's share capital registered in the commercial register will amount to EUR 54,237,944.00 (this does not include subscription shares from conditional capital that were issued but not yet recorded in the commercial register). DEMIRE will use the proceeds generated from the cash capital increase to repay high interest financial liabilities in order to achieve its target to reduce its interest expenses in 2016 and finance property acquisitions as well as strengthen its financial position. The Executive Board Disclaimer This information does not constitute a sales offer or an invitation to submit a purchase offer or to subscribe to securities. No bonds of DEMIRE Deutsche Mittelstand Real Estate AG are publicly offered. The distribution of this information may be legally restricted in certain jurisdictions. All persons in possession of this information should inform themselves about such legal restrictions and comply with them. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This information is not intended for distribution in or within the United States of America, Canada, Japan, or Australia or any other jurisdiction in which an offer or the invitation for the submission of an offer is subject to legal restrictions. This information does not constitute a public offer for the purchase of securities in the United States of America. The bond is not and will not be registered in accordance with the U.S. Securities Act of 1933 as amended (the "Securities Act") and may only be offered or sold on the basis of a registration or an applicable exemption from the registration requirements of the Securities Act of the United States of America. 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 information DEMIRE Deutsche Mittelstand Real Estate AG Investor Relations Lyoner Straße 32 60528 Frankfurt am Main Phone: +49 (0) 69-719 189 79 0 Fax: +49 (0) 69-719 189 79 11 [email protected] www.demire.ag Investor Relations GFEI Aktiengesellschaft Lars Kuhnke Phone: +49 (0) 511 4740 2310 [email protected] 11.08.2016 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at 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: [email protected] Internet: www.demire.ag ISIN: DE000A0XFSF0 WKN: A0XFSF Listed: Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart, Tradegate Exchange End of Announcement DGAP News-Service ---------------------------------------------------------------------------