Noratis intends to issue a corporate bond // Successful as a portfolio developer of residential property

- Volume of up to EUR 50m planned

- Fixed interest coupon planned between 5.00 to 5.50 percent p.a.

- Subscription period is expected to begin at the end of October 2020

- Further profitable expansion of the residential portfolio in Germany planned

- Merz Real Estate accompanies the expansion strategy as a strong anchor shareholder

Eschborn, 05 October 2020 - Noratis AG (ISIN: DE000A2E4MK4, WKN: A2E4MK, "Noratis") plans to extend its successful business model as a portfolio developer of attractive and at the same time affordable living space in Germany with the financial means from a new corporate bond, amongst others. The bond is planned to have a volume of up to EUR 50m. The fixed interest coupon is expected to range between 5.00 and 5.50 percent p.a.

The funds from the Noratis bond are intended to underpin the Company's profitable growth in addition to its very sound equity capitalisation. Moreover, in its expansion strategy, Noratis can rely on Merz Real Estate GmbH & Co. KG (Merz), which is part of the Merz Group. At present, Merz has a stake of around 47.7 percent in Noratis. Within the scope of an investor and firm commitment agreement, Merz undertook to invest up to EUR 50m in Noratis through capital measures up to the end of 2024. As recently as September 2020, Noratis strengthened its equity significantly through a capital increase with a cash inflow in a gross amount of EUR 16.9m. With a current real estate portfolio including properties already acquired but not yet recognised in the balance sheet of more than 3,400 residential units in Germany, Noratis has already today a very stable business basis, which generated a recurring rental income of EUR 8.0m during the first half-year 2020 alone. Consequently, the rental income was already around 35 percent above the level of the previous year.

As a result of the further development of the residential portfolio that already generates stable rental income, Noratis combines the advantages of portfolio property management, such as plannable earnings with the yield opportunities of the property portfolio development. The developer yields are only recognised in the profit and loss account according to German GAAP (HGB) after the property has been sold; in the meantime they constitute hidden reserves in the balance sheet.

The Noratis bond shall be issued in denominations of a nominal EUR 1,000; the planned term shall amount to five years. A public offer is planned in Germany, Austria, and Luxembourg, presumably from the end of October 2020 onwards. Subscription orders shall be placed through the subscription functionality "DirectPlace" of Deutsche Börse AG. In addition, an accompanying international private placement of the bond with institutional investors shall take place. The inclusion of the bond in the stock exchange trading in the Open Market (Quotation Board) of the Frankfurt Stock Exchange shall take place in November 2020. The Sole Global Coordinator and Bookrunner is ICF BANK AG from Frankfurt.

The public offer is subject to the approval by the Luxembourg Financial Supervisory Authority CSSF of the securities prospectus which is authoritative for the transaction and the notification to the Federal German Financial Supervisory Authority BaFin as well as the Austrian Financial Markets Supervisory Authority FMA. The approved securities prospectus will be available for downloading on the website www.noratis.de in the Investor Relations section.

Disclaimer:

This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to securities in any jurisdiction nor a prospectus for the purposes of the Regulation (EU) 2017/1129 as amended ("Prospectus Regulation"). A public offer of the notes will be made solely on the basis of the prospectus approved by CSSF and notified to the German Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) and the Austrian Financial Supervisory Authority (Finanzmarktaufsichtsbehörde, FMA). The information legally required to be provided to investors is contained only in the prospectus. The prospectus will be available free of charge after approval by CSSF on the internet at the website of the issuer (www.noratis.de) under "Investor Relations" and on the website of the Luxembourg Stock Exchange (www.bourse.lu).

The information contained herein is not for distribution, directly or indirectly, in or into the United States of America (including its territories and possessions of any State of the United States of America or the District of Columbia) or publications with a general circulation in the United States of America. This publication constitutes neither an offer to sell nor a solicitation to buy or subscribe to securities in the United States of America. The securities have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States of America absent registration or an exemption from registration under the Securities Act. The issuer does not intend to register any portion of the offering of the notes in the United States of America or to conduct a public offering of the notes in the United States of America.

This publication is only addressed to and directed at persons in member states of the European Economic Area (other than Luxembourg, Germany and Austria) who are "qualified investors" within the meaning of Article 2(e) of the Prospectus Regulation ("Qualified Investors"). In addition, in the United Kingdom, this publication is being distributed only to, and is directed only at, Qualified Investors who (i) are persons who have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), (ii) are high net worth entities falling within Articles 49(2)(a) to (d) of the Order, or (iii) other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). Any investment or investment activity to which this publication relates is only available to and will only be engaged in with (i) in the United Kingdom, relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, Qualified Investors. Any other persons who receive this publication in the European Economic Area (other than Luxembourg, Germany and Austria) should not rely on or act upon it.

This publication is not an offer of securities for sale in Canada, Japan, Australia or South Africa.

About Noratis:

Noratis AG (www.noratis.de) is a leading portfolio developer of residential properties in Germany. The company identifies and realizes potentials for tenants, owner-occupiers & investors, thereby creating and preserving attractive and at the same time affordable living space throughout Germany. Noratis specializes in the upgrading of ageing residential portfolios, mostly company-owned apartments, residential areas or housing estates in cities with more than 10,000 inhabitants and in peripheral areas of conurbations. After a successful development, the properties remain in the company's portfolio or are sold in the medium term to investors and/or individually to existing tenants, capital investors and owner-occupiers. In this way, Noratis creates a noticeable and sustainable added value for all stakeholders: from investors, employees and financing partners to current and future tenants. Noratis AG is listed on the Frankfurt Stock Exchange.

Investor & Public Relations Contact:

edicto GmbH
Axel Mühlhaus / Dr. Sönke Knop
T +49 (0)69 905 505 52
E [email protected]
Eschersheimer Landstraße 42
60322 Frankfurt am Main
Germany