UBM Development : exceeds expectations with bond exchange of EUR 84 mn

(Vienna, 03 October 2017) UBM Development AG, a real estate developer on a European scale, has achieved another success on the capital market with its latest exchange offer. In the course of the exchange offer a nominal value in excess of EUR 84mn for the UBM bond 2014 was exchanged for the new 3.25% UBM bond 2017-2022. The conversion ratio for this bond exchange was thereby significantly higher than for comparable transactions. Investors were invited to exchange their UBM bond 2014 for the new UBM bond at a conversion ratio of 1:1 in addition to a cash premium of EUR 28.78.

Subscription period for new bond to start shortly

Interested investors will be offered the opportunity to subscribe to the remaining issue volume for the new UBM bond in the period 4 to 6 October 2017. The company reserves the right to close the offering earlier. The new bond has a maturity of five years and an annual coupon of 3.25%. The planned value date is 11 October 2017.

Basic Data for 3.25% UBM bonds 2017-2022

UBM Development AG is a real estate developer of European scale. Its strategic focus

is on the three clearly defined asset classes Hotel, Office and Residential, in the three

core markets Germany, Austria and Poland. With 144 years of experience, UBM focuses

on its core competency - the developing of real estate. UBM has changed to the prime

market segment of the Vienna Stock Exchange in August 2016. www.ubm.at

For inquiries, please contact:

Ms. Milena Ioveva

Head of Investor Relations & Corporate Communications

UBM Development AG

Tel.: +43 (0)50 626-1763

Email: public.relations@ubm.at

Disclaimer

Investors bear the risk of the credit-worthiness of the Issuer. This communication constitutes a marketing communication pursuant to the Securities Supervisory Act and promotion pursuant to the Capital Markets Act ('CMA'), but neither an offering of bonds (the 'Bonds') of UBM Development AG ('UBM') nor a financial analysis, an advice related to financial instruments or a recommendation for financial instruments. A public offering of Bonds of UBM shall be conducted exclusively in Austria, Germany and Luxembourg (the 'Offering') to investors resident in such countries on the basis of a prospectus prepared pursuant to CMA, which was approved by the Austrian Financial Markets Authority, published and notified to Germany and Luxembourg, including any supplements thereto (together the 'Prospectus'). The Prospectus was published in electronic form on the website of the Issuer, www.ubm.at, sub-site 'Investor Relations', sub-site 'Bond'.

In connection with the Offering of the Bonds, only the information in the Prospectus is binding, the information in this marketing communication shall not be binding. Prior to any investment decision, investors should make themselves familiar with the content of the Prospectus, in particular the references to risks, taxes and conflicts of interest, and should obtain personally advice with consideration of their individual asset and investment situation.

Press Release 03.10.2017