DGAP-Adhoc: LEG Immobilien AG: Launch of approx. EUR 300 million convertible bond offering

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| Source: EQS Group AG
LEG Immobilien AG  / Key word(s): Corporate Action

07.04.2014 07:32

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.

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NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES
OF AMERICA, ITALY, AUSTRALIA, CANADA, SOUTH AFRICA OR JAPAN, OR ANY OTHER
JURISDICTION IN WHICH OFFERS OR SALES OF SECURITIES WOULD BE PROHIBITED BY
APPLICABLE LAW.

This announcement is an advertisement and not a prospectus and not an offer
of securities for sale in any jurisdiction, including in or into the United
States, Italy, Canada, Japan, South Africa or Australia or any jurisdiction
in which offers or sales of the securities would be prohibited by
applicable law. Neither this announcement nor anything contained herein
shall form the basis of, or be relied upon in connection with, any offer or
commitment whatsoever in any jurisdiction.

LEG Immobilien AG: Launch of approx. EUR300m convertible bond offering

Düsseldorf, April 7, 2014 - The Management Board of LEG Immobilien AG
("LEG") resolved today, with the consent of the Supervisory Board, to
launch an offering (the "Offering") of senior, unsecured convertible bonds,
due 2021, for an aggregate nominal amount of approx. EUR 300 million (the
"Bonds") and by excluding shareholders' pre-emptive rights (Bezugsrechte).
The Bonds will be convertible into new and/or existing ordinary registered
shares of LEG (the "Shares").

With this transaction, LEG continues to seek to diversify its sources of
funding that are accretive to its financial profile. The net proceeds from
the issuance of the Bonds will increase LEG's financial flexibility and
support the acceleration of LEG's proven growth strategy.

The Bonds will have a maturity of 7.2 years and will be issued and redeemed
at 100% of their principal amount. The Bonds will be offered with a coupon
between 0.125% and 0.875% per annum, payable semi-annually in arrear, and a
conversion premium between 30% and 35% above the reference share price,
being the volume-weighted average price of the Shares on XETRA between
launch and pricing of the Offering. Pricing of the Offering is expected to
take place today following an accelerated bookbuilding process with
settlement on or around April 10, 2014.

LEG intends to apply for inclusion of the Bonds to trading on the Open
Market (Freiverkehr) of the Frankfurt Stock Exchange no later than one
month after the settlement of the Offering.

The Bonds will be offered only to institutional investors outside the US,
Canada, Australia, Italy, South Africa, Japan or any other jurisdiction in
which offers or sales of the securities would be prohibited by applicable
law.



About LEG
With more than 95,000 rental properties and more than 260,000 tenants, LEG
is one of Germany's leading housing companies. It has a comprehensive
presence in North Rhine-Westphalia with nine branches, 16 customer centres
and approximately 100 tenant offices providing personal local services. LEG
generated rental and letting income of more than EUR530 million in the 2013
financial year.

Disclaimer

The information contained in this announcement is for background purposes
only and does not purport to be full or complete. No reliance may be placed
for any purpose on the information contained in this announcement or its
accuracy or completeness. No prospectus will be prepared in connection with
the offering of the securities referred to herein. The securities referred
to herein may not be offered to the public in any jurisdiction in
circumstances which would require LEG or any of their respective
affiliates, or any person acting on behalf of thereof, to prepare or
register any prospectus or offering document relating to the securities
referred to herein in such jurisdiction.

This announcement is not for publication or distribution, directly or
indirectly, in or into the United States. The distribution of this
announcement and the offer and sale of the securities referred to herein
may be restricted by law in certain jurisdictions. and persons into whose
possession any document or other information referred to herein comes
should inform themselves about and observe any such restriction. Any
failure to comply with these restrictions may constitute a violation of the
securities laws of any such jurisdiction.

This announcement does not contain or constitute or form part of, and
should not be construed as, an offer or invitation to sell, or the
solicitation of an offer to buy or subscribe for, any securities to any
person in the United States, Italy, Australia, Canada, South Africa or
Japan or in any jurisdiction to whom or in which such offer or solicitation
is unlawful. The securities referred to herein have not been and will not
be registered under the U.S. Securities Act of 1933, as amended or the laws
of any state within the United States or under the applicable securities
laws of Italy, Australia, Canada, South Africa or Japan, and may not be
offered or sold in the United States, unless registered under the
Securities Act or offered and sold in a transaction exempt from, or not
subject to, the registration requirements of the Securities Act. Subject to
certain exceptions, the securities referred to herein may not be offered or
sold in Italy, Australia, Canada, South Africa or Japan or to, or for the
account or benefit of, any national, resident or citizen of Italy,
Australia, Canada, South Africa or Japan. There will be no public offer of
the securities referred to herein in the United States, Italy, Australia,
Canada, South Africa or Japan.

The offer referred to herein when made in member states of the European
Economic Area ("EEA") which have implemented the Prospectus Directive
(each, a "relevant member state"), is only addressed to and directed at
persons who are "qualified investors" as defined in the Prospectus
Directive ("Qualified Investors"). For these purposes, the expression
"Prospectus Directive" means Directive 2003/71/EC (and amendments thereto,
including the 2010 PD Amending Directive, to the extent implemented in a
relevant member state), and includes any relevant implementing measure in
the relevant member state and the expression "2010 PD Amending Directive"
means Directive 2010/73/EU.

In the United Kingdom, this announcement is directed only at, Qualified
Investors (i) 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")
or (ii) who fall within Article 49(2)(a) to (d) of the Order, and (iii) to
whom it may otherwise lawfully be communicated (all such persons together
being referred to as "relevant persons"). This announcement must not be
acted on or relied on (i) in the United Kingdom, by persons who are not
relevant persons, and (ii) in any member state of the European Economic
Area other than the United Kingdom, by persons who are not Qualified
Investors.

This announcement may include statements that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may be
identified by the use of forward-looking terminology, including the terms
"believes", "estimates", "plans", "projects", "anticipates", "expects",
"intends", "may", "will" or "should" or, in each case, their negative or
other variations or comparable terminology, or by discussions of strategy,
plans, objectives, goals, future events or intentions. Forward-looking
statements may and often do differ materially from actual results. Any
forward-looking statements reflect LEG's current view with respect to
future events and are subject to risks relating to future events and other
risks, uncertainties and assumptions relating to the Group's business,
results of operations, financial position, liquidity, prospects, growth or
strategies. Forward-looking statements speak only as of the date they are
made.

LEG and their respective affiliates expressly disclaims any obligation or
undertaking to update, review or revise any forward looking statement
contained in this announcement whether as a result of new information,
future developments or otherwise.

No reliance may or should be placed by any person for any purposes
whatsoever on the information contained in this announcement or on its
completeness, accuracy or fairness. The information in this announcement is
subject to change.

The date of admission of the convertible bonds and the shares issued upon
conversion to trading may be influenced by things such as market
conditions. There is no guarantee that admission will occur and you should
not base your financial decisions on LEG's intentions in relation to
admission at this stage. Acquiring investments to which this announcement
relates may expose an investor to a significant risk of losing all of the
amount invested. Persons considering making such investments should consult
an authorised person specialising in advising on such investments. This
announcement does not constitute a recommendation concerning the
convertible bond offering. The value of shares can decrease as well as
increase. Potential investors should consult a professional advisor as to
the suitability of the convertible bonds offering for the person concerned.


07.04.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      LEG Immobilien AG
              Hans-Böckler-Straße 38  
              40476 Düsseldorf
              Germany
Phone:        +49 (0) 211 / 4568 - 0
Fax:          +49 (0) 211 / 4568 - 261
E-mail:       
Internet:     www.leg-nrw.de
ISIN:         DE000LEG1110
WKN:          LEG111
Indices:      MDAX
Listed:       Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr
              in Berlin, Düsseldorf, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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