Instone Real Estate: Rights issue with gross proceeds of EUR 182 million successfully concluded

- Capital increase with subscription rights with gross proceeds of EUR 182.0 million successfully concluded

- Issue of 10.0 million new shares at a subscription price of EUR 18.20 per share

- A low share of traded rights is a strong confirmation of Instone's accelerated growth strategy

Essen, 15 September 2020: Instone Real Estate Group AG (Instone) successfully concluded a capital increase with subscription rights against cash contribution. The company placed 10.0m of new shares at a subscription price of EUR 18.20 per share equating to gross proceeds of EUR 182.0m. The shares are dividend entitled as of January 1, 2020. As a result of the transaction, the total number of shares increases from 36,998,336 to 46,988,336.

Owing to the execution of the capital increase, the company received a strong confirmation for the accelerated growth strategy. The share of the rights, which have been traded, amounted to less than 16% of the capital. Accordingly, an overwhelming majority of Instone shareholders on the ex-rights day have executed their rights.

"With the additional funds, Instone is ideally positioned for the financing of a step change in growth with the new valuehome product and also to take advantage of additional growth opportunities emerging in the current favourable market environment.", says Kruno Crepulja, CEO of Instone Real Estate Group AG.

About Instone Real Estate (IRE)

Instone Real Estate is one of Germany's leading residential developers and is listed in the SDAX. The company develops attractive multi-family and residential buildings as well as publicly subsidized housing, designs modern urban quarters and refurbishes listed buildings for residential use. Buyers are mainly owner-occupiers, private investors intending to buy and let, and institutional investors. Over the past 29 years, Instone Real Estate successfully developed more than one million square metres. Its 380 employees work out of nine different locations nationwide. As of 30 June 2020, the company's project portfolio comprised 53 development projects with an expected total sales volume of c. 5.7 billion euros and 13,075 units.

Investor Relations
Instone Real Estate
Burkhard Sawazki
Grugaplatz 2-4
D-45131 Essen
Tel.: +49 (0)201 45355-137
E-mail: [email protected]

Cautionary Statements Regarding Forward-Looking Information
Certain statements contained in this release may constitute "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking statements are generally identifiable by the use of the words "may", "will", "should", "plan", "expect", "anticipate", "estimate", "believe", "intend", "project", "goal" or "target" or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are based on assumptions, forecasts, estimates, projections, opinions or plans that are inherently subject to significant risks, as well as uncertainties and contingencies that are subject to change. No representation is made or will be made by Instone that any forward-looking statement will be achieved or will prove to be correct. The actual future business, financial position, results of operations and prospects may differ materially from those projected or forecast in the forward-looking statements. Instone does not assume any obligation to update, and does not expect to publicly update, or publicly revise, any forward-looking statements or other information contained in this release, whether as a result of new information, future events or otherwise, except as otherwise required by law.

Additional Information
This publication constitutes neither an offer to sell nor a solicitation to buy any securities. The securities have already been sold.

Notice to Distributors
Solely for the purposes of the product governance requirements contained within (i) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"), (ii) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II, and (iii) local implementing measures (together, the "MiFID II Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the MiFID II Product Governance Requirements) may otherwise have with respect thereto, the subscription rights to the new shares and the new shares have been subject to a product approval process. As a result, it has been determined that such subscription rights and such new shares are (i) compatible with an end target market of retail investors and investors who meet the criteria of professional clients and eligible counterparties, each as defined in MiFID II and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the "Target Market Assessment"). Notwithstanding the Target Market Assessment, distributors (for the purposes of the MiFID II Product Governance Requirements) should note that: the value of the subscription rights and the price of the new shares may decline and investors could lose all or part of their investment. The new shares offer no guaranteed income and no capital protection; and an investment in the subscription rights and the new shares is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the offering described in the release. For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the subscription rights or the new shares. Each distributor is responsible for undertaking its own target market assessment in respect of the subscription rights and the new shares and determining appropriate distribution channels.