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Corporate News

Gateway Real Estate AG plans measures to finance further growth and intends to increase its free float

• Plan to issue new shares of up to 10 percent of share capital
• Free float increase of up to 25 percent targeted
• Intention to pay dividends of EUR 0.24 per share for fiscal year 2019 (payable in 2020)

Frankfurt, October 5, 2018. Gateway Real Estate AG (WKN: A0JJTG / ISIN: DE000A0JJTG7) intends to take the next step in its corporate development. Depending on the market conditions, the company plans to issue new shares of up to 10 percent of the share capital. The purposes are to finance future growth projects and to strengthen its balance sheet. The placement could be combined with the sale of existing shares to further increase liquidity and generally targeting a free float of 25 percent in the company's shares over a short-term period. Such increased free float is the basis for seeking to uplist the company's shares to the Prime Standard of the Frankfurt Stock Exchange if possible during the first quarter of 2019. No final decisions have been taken yet.

Gateway Real Estate is a listed real estate platform for commercial and residential development with a standing asset portfolio focusing on German A and B cities as well as on growth centres. In addition, Gateway Real Estate is also investing into development joint venture partnerships.

Andreas Segal, CEO of Gateway Real Estate, said: "We are pleased to have created an interesting and promising business model that meets the needs of the underlying operating markets and thus forms the basis for a sustainable and growth-oriented capital market product."

The current development pipeline of Gateway Group comprises in total EUR 3.4bn development sales volume of which approx. EUR 2.3bn are attributable to the company. The pipeline, based on square meters, consists of around 65 percent residential and around 35 percent commercial developments.

The diversification of the business model offers clear advantages: As a supplier to the industry, Gateway Real Estate is increasing its flexibility and de-risking the business model by combining the development of commercial and residential real estate assets with an own standing asset portfolio. The company aims to lever changing market dynamics to create shareholder value over economic cycles. CEO Andreas Segal: "The demand for living space and investment interest in modern office space is enormous and Gateway can supply the required and demanded products."

Gateway Real Estate AG's share capital, before the potential issue of new shares, will consist of 169,785,491 shares after the registration of the contribution in kind, which was resolved by the Annual General Meeting on 22 August 2018.

Gateway Real Estate intends to pay EUR 0.24 in dividends per share for fiscal year 2019. Holger Lüth, CFO of Gateway Real Estate, said: "The business model enables us to create significant free cash-flows. This will position us to pay attractive dividends to our shareholders."

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Contact
Jan-Hauke Jendrny
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About Gateway Real Estate
Gateway Real Estate AG (WKN: A0JJTG / ISIN: DE000A0JJTG7) is a stock listed real estate company. The business model consists of property development in the commercial and residential sectors as well as managing its own standing asset portfolio. Focus is on A and B cities as well as growth centres in Germany. With its standing asset portfolio, its 100% subsidiary Development Partner AG and sizeable joint venture partnerships, Gateway Real Estate offers an attractive business profile on the listed German market. Gateway Real Estate's development projects portfolio consists of 40 projects with an expected development sales volume of approx. EUR 3.4bn and around 763,000 sqm.

Disclaimer
This publication constitutes neither an offer to sell nor a solicitation to buy securities.

In the United Kingdom, this document is only being distributed to and is only directed at persons who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) are persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations, etc.) (all such persons together being referred to as "Relevant Persons"). This document is directed only at Relevant Persons and must not be acted on or relied on by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

These materials may not be published, distributed or transmitted in the United States, Canada, Australia or Japan. These materials do not constitute an offer of securities for sale or a solicitation of an offer to purchase securities (the "Securities") of Gateway Real Estate AG (the "Company") in the United States, Germany or any other jurisdiction. The Securities of the Company may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The Securities of the Company have not been, and will not be, registered under the Securities Act. Any sale in the United States of the securities mentioned in this communication will be made solely to "qualified institutional buyers" as defined in, and in reliance on, Rule 144A under the Securities Act.