DEMIRE AG grows to EUR 1.4 billion through further portfolio acquisitions

- DEMIRE acquires five department stores for EUR 71 million

- All properties are fully leased to Karstadt on a long-term basis

Langen, 27 May 2019 - DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has acquired five department stores for EUR 71.0 million in the scope of a share deal. The properties are located in central inner city locations of German potential cities. The weighted average lease term (WALT) on the fully leased properties is 14.4 years, which has a positive effect on the WALT of DEMIRE's overall portfolio. The properties will initially contribute around EUR 3.1 million per year to FFO I before taxes and minority interests. Transfer of ownership is planned for the second half of 2019.

Ingo Hartlief, CEO of DEMIRE, says: "The second portfolio acquisition in 2019 increases our property portfolio to a total of approximately EUR 1.4 billion, corresponding to external growth of around 21 percent in the current fiscal year. This acquisition diversifies our recently expanded portfolio of offices while keeping the ratio of retail properties constant. The realisation of growth potentials is a core element of the DEMIRE strategy."

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About DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE - First in Secondary Locations

DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up-and-coming locations bordering German metropolitan areas. The company's specific forte is its focus on these second-tier cities - its claim being "First in Secondary Locations" - and on a range of assets that appeals to both internationally active and regionally rooted tenants. Having expanded rapidly in recent years both by buying single properties and by acquiring equity interests, DEMIRE holds a portfolio with a combined lettable area of around 1 million sqm and a fair market value of more than EUR 1.4 billion today.

The portfolio focus on office, retail and logistics assets results in exactly the kind of risk/return structure that DEMIRE considers appropriate for the business line of commercial real estate. The Company puts a premium on long-term contracts with solvent tenants in anticipation of stable and sustainable rent revenues. DEMIRE has set itself the goal to keep optimising its corporate structure. To this end, it pursues an active property management approach, convinced that it is the best way to achieve economies of scale and portfolio optimisations. DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard segment of the Frankfurt Stock Exchange.