DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Real Estate 31.12.2013 10:39 Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Frankfurt am Main, December 31, 2013 - DEMIRE Deutsche Mittelstand Real Estate AG ('DEMIRE', ISIN DE000A0XFSF0) announces the purchase of a commercial property located in the greater Munich area, as of January 1, 2014. Thus, immediately following the placement of a convertible bond, the funds received have been already partially invested and profitably employed. The investment concerns an office building with ca. 15,000 square meters. The purchase price was approximately EUR 10 million, of which 20 percent was financed with equity. This is a multi-tenant property of which currently around 70 percent is leased to various medium-sized tenants. The annual rental income currently amounts to a firm EUR 1 million. Further potential for increasing rental returns is offered by reducing vacancy rates. This potential will be pursued by DEMIRE's active asset management. The purchase of this commercial property is in accordance with DEMIRE's investment strategy. Through this investment, DEMIRE has taken another significant step in its realignment in a very short period of time. At the same time, DEMIRE has been pressing ahead with the examination of other investment opportunities. Contact DEMIRE Deutsche Mittelstand Real Estate AG Investor Relations Lyoner StraÃe 32 60528 Frankfurt am Main Phone: +49 (0) 69-719 189 79 0 Fax: +49 (0) 69-719 189 79 11 Email: ir@demire.ag Web: www.demire.ag Press Relations edicto GmbH Axel Mühlhaus / Werner Rüppel Phone: +49 (0) 69-905 50 55 2 Email: amuehlhaus@edicto.de 31.12.2013 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: DEMIRE Deutsche Mittelstand Real Estate AG Lyoner StraÃe 32 60528 Frankfurt am Main Germany Phone: +49 (0)69 / 719 189 79 0 Fax: +49 (0)69 / 719 189 79 11 E-mail: info@demire.ag Internet: www.demire.ag ISIN: DE000A0XFSF0 WKN: A0XFSF Listed: Regulierter Markt in Frankfurt (General Standard); Freiverkehr in Berlin, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------