DGAP-News: DEMIRE: Successful placement of 10 % cash capital increase several times oversubscribed


DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Capital
Increase
DEMIRE: Successful placement of 10 % cash capital increase several times
oversubscribed

01.09.2016 / 07:30
The issuer is solely responsible for the content of this announcement.

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DEMIRE: Successful placement of 10 % cash capital increase several times
oversubscribed

  - Proceeds allow complete repayment of HFS bond and a significantly lower
    interest burden

  - Net financial debt ratio falls to 64 %

  - Further real estate investments planned

Frankfurt/Main, 1 September 2016 - DEMIRE Deutsche Mittelstand Real Estate
AG's ("DEMIRE", ISIN DE000A0XFSF0) cash capital increase announced in an ad
hoc information release on 11 August 2016 was fully placed with primarily
institutional investors, as anticipated, in the context of a private
placement. The offer was several times oversubscribed. The cash capital
increase was recorded in the commercial register on 31 August 2016 and
raised DEMIRE's share capital by EUR 4,930,722.00. DEMIRE's share capital
currently amounts to a total of EUR 54,242,444.00 and includes the issue of
subscription shares during the year that resulted from the exercise of
conversion rights.

Of the net proceeds of EUR 17 million less cost from the cash capital
increase, a sum of EUR 10 million will be used to fully repay the
outstanding amount of the high-interest HFS bond and will lead to
immediate interest savings of a further EUR 2.0 million annually. DEMIRE
intends to use the remaining net proceeds to finance real estate purchases
and strengthen its financial position.

With the HFS bond's full repayment the weighted interest rate of the DEMIRE
Group's financial debt will sink from 5.1 % p.a. to roughly 4.4 % p.a..
This will place the weighted interest rate within the planned corridor of
4.0 % to 4.5 % p.a., which is targeted for the end of 2016.

As a result of the cash capital increase, the net financial debt ratio fell
from more than 66 % of the real estate holdings to roughly 64 %, bringing
it closer to the planned year-end target rate of 60 %.

The publication of the Company's Half-Year 2016 Financial Report is
scheduled for 6 September 2016 and will be made available on the Company's
website at www.demire.ag under the Investor Relations section (http://
www.demire.ag/en/investor-relations/reports-results/2016).

The Executive Board

Disclaimer
The information in this release contains forward-looking statements that
are subject to various risks and uncertainties. Such forward-looking
statements are based on current forecasts, expectations and estimates of
DEMIRE's Executive Board at the time of their publication. Such statements
constitute neither promises nor guarantees and are subject to various known
and unknown risks and uncertainties, some of which are beyond DEMIRE's
influence. These risks and uncertainties may lead to actual results
differing materially from statements that are mentioned herein. DEMIRE
accepts no obligation to update or adjust the forward-looking statements
contained in this release to reflect events or circumstances after the date
of this release.

Contact information
DEMIRE Deutsche Mittelstand Real Estate AG
Lyoner Straße 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

Investor Relations
GFEI Aktiengesellschaft
Lars Kuhnke
Phone: +49 (0) 511 47 40 23 10
Email: ir@demire.ag

About DEMIRE - First in secondary locations
DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate
holdings in mid-sized cities and up and coming areas bordering German
metropolitan areas. As at March 31, 2016, DEMIRE held real estate
consisting of 180 properties with a market value of EUR 971 million. As at
the reporting date, contractual rents had been firmly agreed upon in the
amount of EUR 74.2 million (at an occupancy rate of 87.0 %) for a term of
5.5 years.

DEMIRE aims to maintain its corporate organisation as lean as possible,
although it still believes that economies of scale and portfolio
optimisation are best achieved by having its own in-house asset, property
and facility management. This safeguards the Company's business expertise
and, equally important, allows the Company to maintain direct contact with
the customer.

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


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01.09.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de

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   Language:    English                                                  
   Company:     DEMIRE Deutsche Mittelstand Real Estate AG               
                Lyoner Straße 32                                         
                60528 Frankfurt am Main                                  
                Germany                                                  
   Phone:       +49 (0)69 / 719 189 79 0                                 
   Fax:         +49 (0)69 / 719 189 79 11                                
   E-mail:      ir@demire.ag                                             
   Internet:    www.demire.ag                                            
   ISIN:        DE000A0XFSF0                                             
   WKN:         A0XFSF                                                   
   Listed:      Regulated Market in Berlin, Frankfurt (Prime Standard);  
                Regulated Unofficial Market in Dusseldorf, Stuttgart,    
                Tradegate Exchange                                       
 
 
   End of News    DGAP News Service  
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497813 01.09.2016