publity Group paves the way for new PREOS majority shareholder - and secures new revenue and growth potential
 

- Luxembourg-based investment company with its own investor consortium of established European insurance     companies to become new majority shareholder of publity Group subsidiary PREOS

- Sales and growth potential expected for publity/ Internationalization strategy of PREOS further accelerated

- Contribution of a Luxembourg real estate and real estate investment portfolio worth over EUR 1 billion by          Luxembourg investment company to PREOS subsidiary GORE German Office Real Estate AG in return for the issue of new GORE shares

- Subsequent contribution of the newly acquired GORE shares by Luxembourg investment vehicle to PREOS against issuance of new PREOS shares

- Positioning of the publity group on the international office property market

Frankfurt am Main, 19. October 2021- publity AG (Scale, ISIN DE0006972508, "publity") is launching the entry of a new majority shareholder in its subsidiary PREOS Global Office Real Estate & Technology AG ("PREOS"). This opens up new revenue and growth potential at European level thanks to the expansion of the portfolio at PREOS.

In detail, it is planned to include an investment company, consisting of a Luxembourg investment company with its own investor consortium of established European insurance companies, as a new major shareholder in PREOS. For this purpose, a letter of intent was concluded with the management company of the Luxembourg investment vehicle with the participation of PREOS and GORE German Office Real Estate AG ("GORE") (see ad hoc release dated October 19, 2021). This will allow PREOS to accelerate its further growth and drive the internationalization of its business activities.

Frank Schneider, CEO of publity AG: "With this transaction, the publity Group gains a strong strategic investor for PREOS. This means new growth prospects in the extremely attractive market for commercial real estate in attractive locations in Europe. The publity group will be strengthened financially in the long term and put in a position to successively expand the real estate portfolio it manages and drive forward its internationalization. At the same time, this will result in additional revenue potential."

According to the Letter of Intent, a portfolio of Luxembourg real estate projects consisting of an investment holding and a debt fund with a market value expected to exceed EUR 1 billion is to be contributed to GORE by way of a capital increase against contributions in kind in exchange for the issuance of new GORE shares. The value to be applied to the GORE shares is to be determined on the basis of the stock market price and on the basis of a company valuation and is expected to be in a range of EUR 2.00 to EUR 3.00 per GORE share. These newly issued GORE shares are then to be contributed to PREOS against the issuance of PREOS no-par value shares. The value to be applied to the PREOS shares is also to be determined here on the basis of the stock market price and on the basis of a company valuation and is expected to be in a range of EUR 4.50 to EUR 5.50 per PREOS share.

The GORE shares then held are to be subsequently reallocated by PREOS to international investors. For this purpose, GORE is to sell its German real estate portfolio and focus exclusively on the acquisition of commercial real estate projects in Luxembourg.

The Annual General Meeting resolutions required for the first two steps are planned for the beginning of 2022.

The proceeds from the re-placement of the GORE shares are to be used as equity for the further expansion of the PREOS portfolio with a focus on premium commercial real estate in Germany and European financial centers. Based on this inflow of funds, the PREOS real estate portfolio is expected to grow by at least EUR 3 billion by the end of 2023. As a result, the investor consortium is to hold a majority stake in PREOS via its Luxembourg investment vehicle. publity AG will reduce its stake in PREOS accordingly.

"The transaction is a milestone in the further development of the publity group of companies and its subsidiaries in the targeted internationalization. As publity AG, we have the opportunity to further position ourselves as a European asset manager in the attractive market for office and commercial real estate in prime locations. Our subsidiary PREOS can establish itself as a high-growth portfolio holder of attractive office properties in international metropolises. and align GORE as a high-yield asset to the Luxembourg commercial real estate market," adds Frank Schneider.

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About publity
publity AG ("publity") is an asset manager and investor specialised in office real estate in Germany. The company covers the core of the value chain from the acquisition to the development and the sale of real estate. With over 1,100 transactions in the past seven years, publity is one of the most active players in the real estate market. publity is characterized by a sustainable network in the real estate industry and in the Work-Out departments of financial institutions. With very good access to investment funds, publity handles transactions rapidly with a highly efficient process and proven partners. On a case-by-case basis, publity participates as co-investor in joint venture transactions to a limited extent. The shares of publity AG (ISIN DE0006972508) are traded on the Scale segment of Deutsche Börse.