Press Release

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PREOS Real Estate AG with successful IPO

- Listing in the m:access of the Munich Stock Exchange

- Focus on the acquisition, letting and sale of commercial properties

- Transaction-active platform to leverage value potentials of real properties with a highly effective network

Leipzig, 21 December 2018 - PREOS Real Estate AG ("PREOS", ISIN DE000A2LQ850), an active real estate investor focusing on commercial properties, has had a successful initial public offering. The 22,000,000 no-par value registered ordinary shares of the company have been listed in the open market segment m:access of the Munich stock exchange since yesterday. The closing price of the share on the first trading day amounted to EUR 7.35, so that the market capitalisation adds up to around EUR 162 million.

PREOS specializes as an active investor in the acquisition, letting and selling of commercial properties (mainly office properties) with value potentials and attractive yield parameters. The investment focus is on real properties in premium locations in Germany, mainly in metropolitan regions. As far as acquisitions are concerned, the main emphasis is on properties which are already operated on a cost-covering basis at the time they are purchased, in order to carry out the optimisation of the properties without selling pressure. The value appreciation is to be brought about by the implementation of a "manage to core" approach, i.e. a value enhancement of the properties by targeted asset management measures.

The real property portfolio held by PREOS for its IPO includes six commercial properties for which property companies of PREOS are already entered as owner in the land register as well as another four properties in respect of which the entry of change in ownership in the land register is to be carried out in the near future. The current portfolio with properties in the regions of Munich, Cologne, Düsseldorf, Frankfurt and Stuttgart, amongst others, is comprised of a total of around 52,500 m². The average remaining term of the lease agreements for the ten properties is approximately 9.4 years.

During the acquisition procedures of the past months PREOS was advised by albrings + müller ag, CMS Hasche Sigle, NAI apollo, and publity AG. PREOS intends to significantly increase the real estate portfolio of the group of companies through acquisitions during the coming years, but also to actively use sales opportunities to realise possible value appreciations.

Libor Vincent, CFO of PREOS, with more than 20 years of experience in the real property and capital market environment: "We want to position PREOS as a lean, flexible and transaction-active real property platform. During the coming months we will increasingly address institutional investors who want to seize the opportunities which result from our platform on the real property market. In this connection we rely on a well-established network with an equally excellent access to buyers and sellers."

Investor & Public Relations
edicto GmbH
Axel Mühlhaus / Hubert Bonn
Eschersheimer Landstraße 42
60322 Frankfurt am Main
Telephone +49(0) 69/905505-52
Email: [email protected]

Disclaimer

This publication does not constitute an offer. In particular, it constitutes neither a public offer for the sale nor an offer or solicitation to acquire, purchase, or subscribe for, shares or other securities.

This publication can include forward-looking statements. Forward-looking statements are all statements which do not relate to historical facts or events. This applies in particular to information concerning the company's intentions, convictions or current expectations with regard to its future financial earning capacity, plans, liquidity, perspectives, growth, strategy and profitability as well as the underlying economic conditions to which the company is exposed. The forward-looking statements are based on the company's current forecasts and estimates made according to its best judgement. Any such forward-looking statements are, however, subject to risks and uncertainties, as they are based on future events and assumptions which may not occur in the future. The company does not undertake to update or amend the forward-looking statements included in this publication, nor to reflect circumstances which occur after the date of this publication to the extent that these do not constitute insider information with a publication requirement.