DGAP-News: PREOS Real Estate AG: PREOS sells real estate portfolio to GORE for EUR 200 million as expected

PREOS sells real estate portfolio to GORE for EUR 200 million as expected

- Portfolio of 12 properties with market values from EUR 4,1 to 19,2 million transferred to GORE

- PREOS receives new GORE shares in return; PREOS stake in GORE at 59.9 percent

- Further focus of PREOS exclusively on premium office properties valuing over EUR 50 million

Leipzig, 17 July 2020 - PREOS Real Estate AG ("PREOS", ISIN DE000A2LQ850) has contributed a real estate portfolio to GORE German Office Real Estate AG ("GORE") as announced (see ad hoc of 5 June 2020). Twelve properties with market values between EUR 4,1 and 19,2 million have now been transferred. This reflects PREOS' focus on premium office properties in prime locations in metropolitan areas such as Frankfurt/Main and Munich, with a market value of over EUR 50 million each.

As part of the transaction, at a valuation of EUR 200 million, 89.9 percent of the shares in the PREOS subsidiary PREOS Immobilien GmbH ("PREOS Immo"), which bundles the portfolio of small-scale PREOS properties, were transferred to GORE. In return, PREOS has obtained new GORE shares at an exchange ratio of 1,000:1. This means that for every one share in PREOS Immo, 1,000 new GORE shares have been transferred to PREOS. As a result of the transaction, PREOS now holds 59.9 percent of GORE.

As a major shareholder of PREOS - and through the transaction also indirect major shareholder of GORE - publity AG will continue to operate as asset manager for PREOS and for GORE. GORE already owns commercial real estate in Germany with a market value of up to EUR 15 million each and is now expanding its focus on office properties in German metropolitan regions in the mid-price segment of up to EUR 40 million.

Frederik Mehlitz, CEO of PREOS Real Estate AG comments: "This is a further step in the implementation of our growth strategy focusing on first-class, large-volume office properties in top German cities. We continue to see very attractive opportunities in our target market, which we will exploit with the support of our major shareholder and asset manager publity.

About PREOS Real Estate AG

PREOS Real Estate AG ("PREOS") is an active real estate investor focused on office properties. PREOS acts as an efficient management holding company. The acquisition focuses on office properties with development potential in German metropolitan regions. Value creation is generated by targeted asset management measures. Developed portfolio properties are sold in the event of adequate sales opportunities. The corporate strategy is to significantly expand the real estate portfolio through acquisitions in the coming years. The PREOS share (ISIN DE000A2LQ850) is listed in the over-the-counter segment m:access of the Munich Stock Exchange (PAG.MU) and on Xetra (PAG.DE). The company headquarters of PREOS is located in Leipzig.

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Mail: preos@edicto.de