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PREOS Real Estate AG: Deutscher Mittelstandsanleihen FONDS subscribes EUR 5 million of the new 7.50% PREOS convertible bond

- Very positive expert feedback

- Subscription period until 4 December 2019 (12:00 noon)

Leipzig, 2 December 2019 - PREOS Real Estate AG ("PREOS", ISIN DE000A2LQ850) welcomes the participation of the Deutscher Mittelstandsanleihen FONDS in the issuance of its 7.50% convertible bond 2019/2024 (ISIN DE000A254NA6). According to KFM Deutsche Mittelstand AG, initiator of the German SME Bond Fund, the subscribed volume of the Fund amounts to EUR 5 million. This means that one of the most relevant players in SME bonds in the German-speaking region has participated in the issue.

In addition, other bond experts have also made positive comments on the 2019/2024 convertible bond of PREOS Real Estate AG in recent days. The independent specialists of the BondGuide (www.bondguide.de) awarded the PREOS convertible bond with the highest mark of 5 stars, came to the overall assessment of "above-average prospects" and advised subscription. The independent experts at BONDBOOK (www.fixed-income.org) highlighted the "high" coupon, the 105.0 percent repayment (if not converted) and the attractive conversion price, which would offer additional opportunities. Plusvisionen (www.plusvisionen.de) also dealt intensively with the PREOS convertible bond and described the terms of the PREOS converter as "strong" and " abundant". With the offer and a total yield of (nominal) around 8.5 percent per year, PREOS is "at the upper end of what investors otherwise get with SME bonds," they said.

Investors can still place subscription orders for the PREOS Convertible Bond until 4 December 2019 (12:00 noon) starting from a nominal amount of EUR 1,000, in particular via the "DirectPlace" subscription functionality of Deutsche Börse AG. The total issue volume of the convertible bond totals up to EUR 300 million. Repayment at maturity, on 9 December 2024, will be made at 105.0 percent of the nominal amount of EUR 1,000 per bond, unless converted into PREOS shares. The conversion option into PREOS shares exists during certain conversion periods in the years 2021 to 2024. The initial conversion ratio is EUR 9.90. The inclusion of the convertible bond in the Open Market of the Frankfurt Stock Exchange is planned as of 9 December 2019.

The relevant securities prospectus for the public offering, which has been approved by the German Federal Financial Supervisory Authority (BaFin), can be downloaded from the PREOS website (www.preos.de) under "Investor Relations". The following notices must also 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 exclusively by the securities prospectus approved by the Federal Financial Supervisory Authority (BaFin) on 15 November 2019 and published on the website of PREOS Real Estate AG (www.preos.de) in the "Investor Relations" section and the subscription offer published in the Federal Gazette on 18 November 2019. Only the securities prospectus and the subscription offering contain the information for investors required by law.

Investors are advised to read the securities prospectus, which has been audited for completeness, coherence and comprehensibility by the German Federal Financial Supervisory Authority (BaFin), as published on the website of PREOS Real Estate AG (www.preos.de) in the "Investor Relations" section before deciding 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 consulting with its own lawyers, tax advisors 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 contains evaluations, analyses and/or recommendations from third parties. The reproduced evaluations, analyses and/or recommendations of third parties have not been compiled by PREOS Real Estate AG. The reference to such evaluations, analyses and/or recommendations of third parties is solely for the reader's non-binding information. PREOS Real Estate AG neither adopts nor confirms the evaluations, analyses and/or recommendations of third parties contained in this publication. PREOS Real Estate AG accepts no liability whatsoever for the selection, topicality, completeness or correctness of the evaluations, analyses and/or recommendations of third parties contained in this publication or for losses incurred by investors as a result of such evaluations, analyses and/or recommendations of third parties.

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]