DEMIRE receives backstop commitments totalling around EUR 194 million

Langen, 16 August 2024. The accession period for the backstop agreement of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) in connection with the transaction to extend the 2019/24 bond expired yesterday. Under this agreement, bonds with a nominal amount at closing of approximately EUR 194 million will be made available as a backstop for the planned tender offer.

The backstop agreement obliges the participating bondholders to tender the bonds covered by the agreement for repurchase at a backstop price of 76.25% of the nominal amount after completion of the tender offer, provided that the repurchase amount of EUR 159.6 million available for the tender offer has not been exhausted. The nominal amount of the individual bond at the time of the closing of the backstop transaction will be 90% of the current nominal amount, as 10% of the currently outstanding nominal amount of the bond will be redeemed at par (on a pro rata basis applying a pooling factor). All bondholders participating in the backstop will receive a fee of 5% on the respective allocated backstop amount. The closing of the transaction, if implemented, is expected to take place in October 2024.

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Deutsche Mittelstand Real Estate AG acquires and holds commercial real estate in mid-sized cities and up-and-coming locations bordering metropolitan areas across Germany. The Company's particular strength lies in realising the potential of the properties at these locations while focusing on a range of properties that appeals to both regional and international tenants. As of 30 September 2023, DEMIRE's portfolio comprises 60 assets with a lettable space of approx. 860 thousand sqm. Including the proportionately acquired Cielo property in Frankfurt/Main, the market value amounts to approximately EUR 1.4 billion as of 30 September 2023.

The portfolio's focus is on office properties with a blend of retail and hotel properties resulting in a return / risk structure that is appropriate for the commercial real estate segment. The Company places importance on long-term contracts with solvent tenants and the realisation of the properties' potential. DEMIRE anticipates continued stable and sustainable rental income along with solid value appreciation.

DEMIRE aims to expand its portfolio significantly in the medium term. The company focuses on assets contributing strongly to the FFO and properties with the potential for additional value creation. Properties that are not in line with this strategy will be sold. DEMIRE is being further developed operationally and procedurally with numerous measures. The company plans to enhance its operating performance through cost discipline as well as an active asset and portfolio management approach.

DEMIRE Deutsche Mittelstand Real Estate AG AG (ISIN: DE000A0XFSF0) shares are listed in the Regulated Market (Prime Standard segment) of the Frankfurt Stock Exchange.