THE INFORMATION CONTAINED IN THIS DOCUMENT IS NOT INTENDED FOR PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, TO, WITHIN OR FROM THE UNITED STATES OF AMERICA OR ANY OTHER COUNTRY WHERE SUCH PUBLICATION OR DISTRIBUTION WOULD BE CONTRARY TO THE LAWS OF THAT COUNTRY.

PREOS Real Estate AG decides to issue a convertible bond with a volume of up to EUR 300 million.

- Convertible bond 2019/2024 with a coupon rate of 7.5 % p.a. and repayment at 105.0 % upon maturity in December 2024

- Initial conversion ratio at EUR 9.90

- General public offering (in Germany) expected from 19.11.- 4.12.2019

- publity AG contributes approximately EUR 113 million in loan receivables to PREOS and receives bonds with a total nominal value of approximately EUR 107.8 million.

- Subscription offering (in Germany) expected from 19.11.- 2.12.2019

- Cash inflow to be used for corporate growth and further expansion of real estate portfolio

Leipzig, 11 November 2019 - On 8 November 2019, the Management Board of PREOS Real Estate AG ("PREOS", ISIN DE000A2LQ850) resolved, with the approval of the Supervisory Board, to issue a convertible bond with a volume of up to EUR 300 million ("Convertible Bond 2019/2024"). The convertible bond 2019/2024 (ISIN DE000A254NA6) with a denomination of EUR 1,000 each has an coupon rate of 7.50% p.a. and a maturity of five years. At maturity, non-converted bonds will be redeemed at 105.00% of the nominal amount of EUR 1,000 per bond. The bonds may be converted into shares of PREOS Real Estate AG during certain conversion periods in the years 2021 to 2024. The initial conversion ratio is EUR 9.90. Accordingly, a bond with a nominal value of EUR 1,000 could be converted into 101 PREOS shares.

The convertible bond 2019/2024 may be subscribed for by interested investors within the framework of a general public offering (in Germany) presumably from 19 November 2019 to 4 December 2019 at the issue price of EUR 1,000.00 per bond, in particular via the subscription functionality "DirectPlace" of Deutsche Börse AG. At the same time, a subscription offering (in Germany) is expected to be launched from 19 November 2019 to 2 December 2019 to the PREOS shareholders at a subscription price of also 1,000.00 per bond. The issue and subscription price thus corresponds to 100 % of the nominal amount per bond. Subscription right trading is not intended.

publity AG, the majority shareholder of PREOS, has already subscribed to bonds with a nominal value of approximately EUR 107.8 million as part of a pre-placement against a contribution in kind. In return, publity AG contributed loan claims against publity Investor GmbH, a subsidiary of PREOS, in the nominal amount of approximately EUR 113 million to PREOS as a contribution in kind. Bonds remaining after the subscription offering and the general public offering shall be offered for subscription to selected qualified investors in an international private placement.

It is planned to have the convertible bond 2019/2024 included in exchange trading on the Open Market of the Frankfurt Stock Exchange starting 9 December 2019.

PREOS intends to use the inflow of funds from the transaction primarily to acquire further properties and real estate companies to expand its portfolio.

Frederik Mehlitz, CEO of PREOS Real Estate AG: "With the convertible bond, we are creating additional potential for the further growth of our company and can exploit market opportunities consistently and flexibly. We offer investors an attractive coupon rate of 7.50 % per annum over five years and a repayment rate of 105 % at maturity. The option to convert the bond into shares allows investors to participate in PREOS' appreciation potential."

The relevant securities prospectus for the general public offering and the subscription offering will be available on the website of PREOS (www.preos.de) in the "Investor Relations" section after its approval by the Federal Financial Supervisory Authority (BaFin), probably as of 15 November 2019. In this context, the following information must be observed.

Disclaimer

This publication does not constitute an offer. In particular, it does not constitute a public offer to sell or an offer or a solicitation of an offer to purchase, purchase or subscribe for any bonds, shares or other securities. The offer is governed solely by the securities prospectus to be approved by the German Federal Financial Supervisory Authority (BaFin) and expected to be published on 15 November 2019 on the website of PREOS Real Estate AG (www.preos.de) in the " Investor Relations " section as well as the subscription offer expected to be published in the German Federal Gazette on 18 November 2019. Only the securities prospectus and the subscription offering will contain the information for investors required by law.

Investors are recommended to read the securities prospectus, which is to be audited by the German Federal Financial Supervisory Authority (BaFin) for completeness, coherence and comprehensibility, as it is expected to be available on the website of PREOS Real Estate AG (www.preos.de) in the "Investor Relations" section before they decide to acquire or dispose of bonds or shares of PREOS Real Estate AG in order to fully understand the potential risks and opportunities of the investment decision, and to make an investment decision only using all available information about the company after consultation with their own lawyers, tax advisers and/or financial advisers. It should be noted that approval of the Prospectus by BaFin is not to be construed as an endorsement of the relevant securities.

The securities mentioned in this publication are a product that is not simple and may be difficult to understand.

A public offering of the securities mentioned in this publication will be made exclusively on the basis of and in accordance with the securities prospectus and only in the Federal Republic of Germany. In particular, neither a public offering nor a solicitation of an offer to purchase securities in the United States of America, Japan, Canada, New Zealand or Australia will be made.

The securities mentioned in this publication have not been and will not be registered under the United States Securities Act of 1933 (the "Securities Act") or the securities laws of any state of the United States of America and may not be admitted to trading in or into the United States of America or into or on behalf of or for the account or benefit of a U.S. person or entity.The securities may not be offered, offered, sold, pledged, transferred or delivered (directly or indirectly) to, or for the account or benefit of, any person (as such term is defined in Regulation S under the Securities Act) absent registration or an exemption from, or pursuant to an exemption from, the registration requirements of the Securities Act or a transaction not subject to the registration requirements of the Securities Act and in any event in accordance with the securities laws of any state of the United States.

This publication may contain future-oriented statements. Future-oriented statements are all statements that do not refer to historical facts or events. This applies in particular to statements about the intentions, beliefs or current expectations of the Company with respect to its future financial performance, plans, liquidity, prospects, growth, strategy and profitability as well as the economic environment in which the company operates. The future-oriented statements are based on current estimates and assumptions made by the company to the best of its knowledge. However, such forward-looking statements are subject to risks and uncertainties because they relate to future events and are based on assumptions that may not occur in the future. The company is not obliged to update or modify the future-oriented statements contained in this publication to reflect events or circumstances occurring after the date of this publication, unless they contain insider information subject to publication requirements.

About PREOS Real Estate AG

PREOS Real Estate AG ("PREOS") is an active real estate investor focused on office properties. PREOS acts as an efficient management holding company. The acquisition focuses on office properties with development potential in German metropolitan regions. Value creation is generated by targeted asset management measures. Developed portfolio properties are sold in the event of adequate sales opportunities. The corporate strategy is to significantly expand the real estate portfolio through acquisitions in the coming years. The PREOS share (ISIN DE000A2LQ850) is listed in the over-the-counter segment m:access of the Munich Stock Exchange (PAG.MU) and on Xetra (PAG.DE). The company headquarters of PREOS is located in Leipzig.

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