EQS-Adhoc: DEMIRE reaches commercial agreement with a further group of bondholders regarding the restructuring of the 2019/2024 bond

Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014

DEMIRE reaches commercial agreement with a further group of bondholders regarding the restructuring of the 2019/2024 bond

Langen, 1 July 2024. Today, a further significant group of holders ("Further Bondholders") of the unsecured corporate bond (ISIN: DE000A2YPAK1) issued by DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) ("Company") with a maturity date of October 15, 2024 and a currently outstanding principal amount of EUR 499 million ("Bond") have agreed to support the financial restructuring as outlined in the Company's ad hoc announcement dated June 5, 2024 ("Transaction") and as agreed between the Company and a certain group of bondholders ("Ad hoc Group") in a lock-up agreement ("Lock-up Agreement"), subject to the following limited amendments: (i) payment of an additional 2% fee by the Company to bondholders in the event that the Company does not manage to reduce the principal amount outstanding under the Bond by EUR 50,000,000.00 in 2026 with such reduction required to be made at par value; (ii) an increase of the PIK interest in 2027 from 1% to 3% if the Bond has not been repaid in full by the end of 2026 (such amendments, the  "Proposed Amendments"). On that basis, the Further Bondholders have furthermore agreed to participate in the backstop of the tender offer as outlined in the ad hoc publication of the Company on 5 June 2024.

The Company will now approach the Ad hoc Group to request an amendment to the Lock-up Agreement and their consent to implement the Transaction with the Proposed Amendments. The Company is optimistic that the Ad hoc Group will consent to the Proposed Amendments, since they further improve the terms of the reinstated bond. Upon amendment of the Lock-up Agreement, the Company intends to convene a vote without a meeting in accordance with the German Bond Act (SchVG) shortly to implement the Transaction with the Proposed Amendment with the support of both, the Further Bondholders and the Ad hoc Group, which together hold, directly or indirectly, bonds representing more than 90% of the total outstanding nominal amount of the bond.

1937359  02-Jul-2024 CET/CEST