Deutsche Konsum REIT-AG plans the issuance of mandatory convertible bonds excluding the subscription right of shareholders.

Notification of Insider Information according to art. 17 MAR Deutsche Konsum REIT-AG plans the issuance

Deutsche Konsum REIT-AG plans the issuance of mandatory convertible bonds excluding the subscription right of shareholders.

 

Deutsche Konsum REIT-AG  / Key word(s): Corporate Action

21.09.2016 08:13

Disclosure of an inside information according to Article 17 MAR,
transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Notification of Insider Information according to art. 17 MAR

Deutsche Konsum REIT-AG plans the issuance of mandatory convertible bonds
excluding the subscription right of shareholders.

Broderstorf, 21 September 2016 - The executive board of Deutsche Konsum
REIT-AG (the "Company"), with the approval of the supervisory board, has
passed a resolution in principle today to issue bonds with both a
conversion option and a conversion obligation in the total amount of about
EUR 14 million.

The convertible bonds will have a denomination of EUR 1,000 per partial
bond, a term of 2 years and a coupon of 0.25% p.a. They can be converted
from the third month after issuance on, i.e. presumably from 27 December
2016 on, at an initial conversion price of EUR 8.50 per share. As a result,
they are, subject to an adjustment of the conversion price, convertible
into 1,660,000 shares of the Company. The convertible bond comes with a
conversion obligation for the bondholders at maturity.

The Company plans to use the proceeds from the issuance of the convertible
bonds for further real estate purchases. The company is currently assessing
the benefits of such prospective purchases.

The main shareholder of the Company, Obotritia Capital KGaA, has committed
to subscribe for and purchase the convertible bonds in their entirety. It
has notified the Company that, simultaneously with the acquisition of the
mandatory convertible bonds, it intends to sell up to 1.38 million shares
of Deutsche Konsum REIT-AG which are currently in its own stock, at a price
equal to the initial conversion price of EUR 8.50.

The transaction will be accompanied by ODDO SEYDLER BANK AG.

Deutsche Konsum is a REIT, that is specialized in retail properties of
every day demand, and which has been listed on the Berlin Stock Exchange
since December 2015. Since its listing, the Company has notarized further
real estate purchase contracts and currently holds lettable surfaces of
188,000 square meters with an annualised yearly rent of EUR 13.8 million,
spread over 34 properties.

Issuer:
Deutsche Konsum REIT-AG
Seat of business:
Försterweg 2
14482 Potsdam

ISIN: DE000A14KRD3
WKN: A14KRD3
Stock Markets: Regulated Market in Berlin; Open Market in Frankfurt

Disclaimer:

This document and the information contained herein are for information
purposes only and do not constitute a prospectus or an offer to sell or a
solicitation of an offer to buy any securities of Deutsche Konsum REIT-AG
(the 'Company') in the United States or in any other jurisdiction. This
announcement may not be published, distributed or transmitted, directly or
indirectly, in or into the United States, Canada, Australia, Japan or South
Africa. The securities of the Company may not be offered or sold in the
United States absent registration or an exemption from registration under
the U.S. Securities Act of 1933, as amended (the 'Securities Act'). The
securities of the Company have not been, and will not be, registered under
the Securities Act or under the applicable securities laws of Australia,
Canada, Japan or South Africa. The distribution of this announcement 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 restrictions. Any
failure to comply with these restrictions may constitute a violation of the
securities laws of any such jurisdiction.

Contact:
Deutsche Konsum REIT-AG
Frau Wencke Röckendorf
Försterweg 2
14482 Potsdam 
Tel. +49 (0)331 / 74 00 76 - 510


21.09.2016 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:      Deutsche Konsum REIT-AG
              Försterweg 2
              14482 Potsdam
              Germany
Phone:        +49 (0)331 740076510
Fax:          
E-mail:       wr@obocap.com
Internet:     www.deutsche-konsum.de
ISIN:         DE000A14KRD3
WKN:          A14KRD 
Listed:       Regulated Market in Berlin; Regulated Unofficial Market in
              Tradegate Exchange; Open Market in Frankfurt
 
End of Announcement                             DGAP News-Service
 
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