TLG IMMOBILIEN : successfully places corporate bond with a nominal value of EUR 400 m

Press release

TLG IMMOBILIEN AG successfully places corporate bond with a nominal value of EUR 400 m

- Fixed rate notes with a nominal value of EUR 400 m due 2024

- Strong investor demand for TLG IMMOBILIEN's inaugural corporate bond issuance, underlined by 2.9 times oversubscription of order books

- Corporate bond enables TLG IMMOBILIEN to further diversify sources of funding

- Issue proceeds to be used for refinancing, future real estate acquisitions and general corporate purposes

- Moody's has assigned corporate bond rating of Baa2

Berlin, 20 November 2017 - Today, TLG IMMOBILIEN AG (ISIN: DE000A12B8Z4) announced the successful placement of unsecured, fixed rate standalone notes in an aggregate nominal amount of EUR 400 m with a denomination of EUR 100,000 (the "Notes"). The Notes are issued at an issue price of 99.735%, are due on 27 November 2024 and will bear interest at a rate of 1.375% per year and a total yield of 1.415% per year.

TLG IMMOBILIEN intends to use the net proceeds from the Notes (i) to refinance selected land-charge secured loans in an aggregate amount of approx. EUR 300 m in order to lower the consolidated interest expenses, (ii) for future acquisitions while maintaining a maximum Net LTV of 45.0% of TLG IMMOBILIEN as well as (iii) for general corporate purposes.

TLG IMMOBILIEN's average cost of debt is expected to drop below 2% with its average debt maturity remaining at a high level of around 6 years.

TLG IMMOBILIEN intends to arrange for the Notes to be listed on the regulated market of the Luxembourg Stock Exchange (Bourse de Luxembourg).

Commenting on the successful bond placement, Peter Finkbeiner, member of the Management Board of TLG IMMOBILIEN, said, "With its first corporate bond issuance, TLG IMMOBILIEN further diversifies its sources of funding by gaining access to a highly liquid debt capital market, supporting us in the further execution of TLG IMMOBILIEN's growth strategy."

Deutsche Bank and J.P. Morgan acted as Joint Bookrunners on this transaction. VICTORIAPARTNERS acted as independent financial advisor to TLG IMMOBILIEN.

See here for bond details:

www.tlg.eu > Investor Relations > Bond

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About TLG IMMOBILIEN AG
TLG IMMOBILIEN AG is a leading commercial real estate company in Germany that has been synonymous with real estate expertise for over 25 years. TLG IMMOBILIEN AG generates stable rental income and exhibits low vacancy rates, very good building stock and profits from its local employees' excellent market knowledge. As an active portfolio manager, TLG IMMOBILIEN AG is specialized in commercial properties for office and retail use; it focuses on managing a high-quality portfolio mainly comprising office properties in Berlin, Frankfurt am Main, Dresden, Leipzig and Rostock. In addition, TLG IMMOBILIEN AG holds a regionally diversified portfolio of retail properties in highly frequented micro locations. The portfolio also includes seven hotels in Berlin, Dresden, Leipzig and Rostock. TLG IMMOBILIEN AG's properties stand out not only due to their excellent locations, but also because of their long-term lease agreements.

As of 30 September 2017, the total property value amounted to EUR 2.4 bn and the EPRA NAV per share amounted to EUR 20.00.

Important Notice
This publication may not be published, distributed or transmitted, directly or indirectly, in the United States of America (including its territories and possessions), Canada, Japan or Australia or any other jurisdiction where such announcement could be unlawful. The distribution of this announcement may be restricted by law in certain jurisdictions and persons who are in possession of this document or other information referred to herein 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.

This publication does not constitute an offer of, or a solicitation of an offer to purchase, securities of TLG IMMOBILIEN AG or of any of its subsidiaries in the United States of America, Germany or any other jurisdiction. Neither this announcement nor anything contained herein shall form the basis of, or be relied upon in connection with, an offer in any jurisdiction. The securities referred to herein may not be offered or sold in the United States of America in the absence of registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The securities of TLG IMMOBILIEN AG have not been, and will not be, registered under the Securities Act.

In the United Kingdom, this announcement is only directed at persons who (i) are investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the "Order") or (ii) are persons falling within Article 49(2)(a) to (d) of the Order (high net worth companies, unincorporated associations, etc. (all such persons together being referred to as "Relevant Persons")). This document must not be acted on, or relied upon, by persons who are not Relevant Persons. Any investment or investment activity to which this document relates is available only to Relevant Persons and will be engaged in only with Relevant Persons.

In member states of the European Economic Area ("EEA") this announcement and any offer, if made subsequently, is directed exclusively at persons who are "qualified investors" within the meaning of the Prospectus Directive. For these purposes, the expression "Prospectus Directive" means Directive 2003/71/EC, and any amendments thereto, in particular Directive 2010/73/EU.

No action has been taken that would permit an offering or an acquisition of the securities or a distribution of this announcement in any jurisdiction where such action would be unlawful. Persons into whose possession this announcement comes are required to inform themselves about and to observe any such restrictions.

This announcement does not constitute a recommendation concerning the private placement of securities described in this announcement (the "Placement"). Investors should consult a professional advisor as to the suitability of the Placement for the person concerned.

J.P. Morgan Securities plc ("J.P. Morgan") and Deutsche Bank Aktiengesellschaft ("Deutsche Bank") are acting exclusively for TLG IMMOBILIEN AG in connection with the Placement. J.P. Morgan and Deutsche Bank will not regard any other person as their respective client in connection with the Placement and will neither be responsible, nor provide protection, to anyone other than TLG IMMOBILIEN AG, nor will J.P. Morgan or Deutsche Bank provide advice to anyone other than TLG IMMOBILIEN AG in relation to the Placement, the contents of this announcement or any other matter referred to herein.

In connection with the Placement, J.P. Morgan and Deutsche Bank as well as any of their affiliates, acting as investors for their own accounts, may subscribe for or purchase securities of TLG IMMOBILIEN AG and may otherwise deal for their own accounts. Accordingly, references to the securities being issued or sold should be read as including any issue, offer or sale to J.P. Morgan and Deutsche Bank as well as any of their affiliates acting as investors for their own accounts. In addition, J.P. Morgan and Deutsche Bank or their respective affiliates may enter into financing arrangements and swaps with investors in connection with which J.P. Morgan and Deutsche Bank or their affiliates may from time to time acquire, hold or dispose of shares of TLG IMMOBILIEN AG. J.P. Morgan and Deutsche Bank do not intend to disclose the extent of any such investment or transactions, unless there is a legal or regulatory obligation to do so.

None of J.P. Morgan or Deutsche Bank or any of their respective directors, officers, employees, advisers or agents accept any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied as to, the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from this announcement) or, with limited exception, any other information relating to TLG IMMOBILIEN AG, its subsidiaries and affiliated companies, whether written, oral or in visual or electronic form, or any damage howsoever arising from any use of this announcement or its contents or otherwise arising in connection therewith.

To the extent that this announcement contains forward-looking statements, such statements do not represent facts and are characterized by the words "expect", "believe", "estimate", "intend", "aim", "assume" or similar expressions. Such statements express the intentions, opinions or current expectations and assumptions of TLG IMMOBILIEN AG and are based on current plans, estimates and forecasts which TLG IMMOBILIEN AG has made to the best of its knowledge, but which do not claim to be correct in the future. Forward-looking statements are subject to risks and uncertainties that are difficult to predict and usually cannot be influenced by TLG IMMOBILIEN AG. It should be kept in mind that the actual events or developments may differ materially from those contained in or expressed by such forward-looking statements.