Demire Deutsche Mittelstand Real Estate : sells non-core portfolio significantly above carrying amount

Langen, 25. January 2017 - DEMIREDeutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) sold a portfolio of 84 non-strategic properties and part of a property located in Darmstadt for a total of EUR21.6 million. Most of the properties are decentrally located and currently leased to Deutsche Post DHLGroup. The properties were each sold at values below EUR500,000. The property in Darmstadt is currently leased to Deutsche Telekom. The total sale price for the properties exceeded the properties' fair value by more than EUR3 million 'and roughly 16 % above the current market value - a further sign of DEMIRE's conservative accounting. The property sales will be recognised in the 2016 financial year. The transaction resulted in a significant decline in the number of properties held by the DEMIREGroup, bringing the total from 178 to 94. The sale also underlines the Executive Board's focus on selected locations and real estate projects.

'This transaction demonstrates that we are committed to our strategy of divesting non-core properties as part of our active portfolio management', says Prof. Andreas Steyer, Speaker of the Executive Board. The targeted optimisation of our holdings is progressing ahead of schedule. Proceeds from these transactions will be reinvested in acquisitions that are in tune with our strategy. Each investment is expected to amount to between EUR10 and 50 million'.

This transaction also further reduces the complexity of DEMIRE's portfolio, which in turn lowers the property management and administrative costs. The sale will also result in a continued improvement in our EPRAvacancy rate (declined from 12.8 % to 10.4 % as of December 31, 2015; pro forma 2016: 10.4 %).

The Management Board