DGAP-News: Gateway Real Estate AG shows strong growth in 2018 and intends to up-list on the Frankfurt Stock Exchange

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Gateway Real Estate AG shows strong growth in 2018 and intends to up-list on the Frankfurt Stock Exchange

• Gateway publishes final figures for 2018 and shows considerable operative growth
• Current project volume with a gross development value (GDV) of approximately 3.7 billion Euro
• The company plans to issue new shares of around 10% of the existing share capital
• Gateway intends to list its shares on the "Prime Standard" of the Frankfurt Stock Exchange in the first half of 2019

Frankfurt, March 4, 2019. Gateway Real Estate AG (WKN: A0JJTG / ISIN: DE000A0JJTG7), one of the leading property development groups focused on the German real estate market, published its audited consolidated financial statements for the financial year 2018 today. The company confirms its already announced preliminary figures and looks back on a strong performance in 2018.

Uplisting and intended private placement of new and existing shares
Following the successful acquisition of Development Partner AG, Gateway intends to pursue a listing of its shares on the "Prime Standard" (regulated market) of the Frankfurt Stock Exchange in the first half of 2019. In connection with this uplisting, newly issued shares in the form of a capital increase of around 10% of the existing share capital together with existing shares from the holdings of the current majority shareholder are planned to be offered to investors by way of a private placement. A final decision on the timing of the private placement and the size of the offering has not yet been taken.

For the purpose of the private placement, Credit Suisse is acting as Sole Global Coordinator and Joint Bookrunner, Société Générale is acting as Joint Bookrunner and Quirin Privatbank has been mandated as Co-Lead Manager.

Manfred Hillenbrand, CEO of Gateway says: "Thanks to our strong development project portfolio and proven continuous sourcing capabilities, we are well positioned to further benefit from the strong potential of the attractive German commercial and residential property market. We experience an increasing demand from investors for German real estate project development companies. The proceeds from the capital increase will expand our financial flexibility to accelerate our growth."

Leading in commercial and residential real estate development
Gateway is a real estate platform for commercial and residential development with a strong and diversified asset portfolio. The group is currently developing 41 projects with an estimated gross development value (GDV) of approximately 3.7 billion Euro and has a project acquisition pipeline of approximately 1.0 billion Euro GDV. The projects primarily include commercial and residential real estate in Germany's top seven cities, Berlin, Munich, Hamburg, Frankfurt, Dusseldorf, Cologne and Stuttgart, as well as locations in metropolitan areas showing dynamic growth such as Nuremberg and Leipzig.

The German commercial and residential real estate markets are experiencing strong and dynamic demand. The company believes it has the ideal platform and portfolio to benefit from such fundamental market trends and that it is ideally positioned to capture value in the market with strong margins and returns on capital. The diversification of the business model offers clear advantages: Gateway is increasing its flexibility and de-risking the business model by combining the development of commercial and residential real estate assets. Gateway has built up a scalable and lean platform to further execute the growth plan by selling properties to institutional investors (B2B) and, therefore, believes it will be able to grow the business.

Strong results for 2018 confirm business model
Due to these strategic initiatives, Gateway showed strong growth in the past business year. The final audited consolidated financial statements for 2018 published today confirm the preliminary figures announced on February 6, 2019 and underscore the significant improvements in relevant key figures: Adjusted EBITDA (operating result including result from associated companies) reached around 73 million Euro. Gateway generated Earnings before taxes of approximately 42 million Euro in 2018. The audited consolidated financial statements are available on the company's website.

"Our strong figures for 2018 show that we are on track. With the impressive operative performance of our project development business, we have improved our financial earning power capabilities considerably. Thus, the growing number of forward sales improves our planning basis for further growth and shall have a very positive impact on our future cash flow," comments Tobias Meibom, CFO of Gateway. "With the intended listing on the Prime Standard segment of the Frankfurt Stock Exchange, our company will also be more transparent and visible for investors."

About Gateway Real Estate
GATEWAY REAL ESTATE AG is a leading publicly listed developer of commercial and residential real estate in Germany (WKN: A0JJTG / ISIN: DE000A0JJTG7). The company has a broadly diversified portfolio, excellent market access and a well-filled project pipeline. As a result, the company achieves sustainable and profitable growth. The group is currently developing 41 projects with an estimated gross development value (GDV) of approximately 3.7 billion Euro.
Further information: http://www.gateway-re.de/en/
Contact
Tobias Meibom
Gateway Real Estate AG
The Squaire No. 13, Am Flughafen
60549 Frankfurt am Main
Germany
info@gateway-re.de
http://www.gateway-re.de
Important notice
This announcement does not contain or constitute an offer to sell nor a solicitation to buy or subscribe for securities.

Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of the Gateway Real Estate AG (the "Company"). You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," or, in each case, the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with our industry, aswell as many other risks specifically related to the Company and its operations.

This announcement is not for publication or distribution, directly or indirectly, in or into the United States of America (the "United States"). This announcement is not an offer of securities for sale into the United States. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, (the "Securities Act") and may not be offered or sold in the United States, except pursuant to an applicable exemption from registration requirements under the Securities Act. No public offering of securities is being made in the United States.

In the United Kingdom, this information is directed at and/or for distribution only to (i) 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) high net worth companies falling within article 49(2)(a) to (d) of the Order (each such person hereinafter a "relevant person"). The securities are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this information or any of its contents. Subject to certain exceptions under the Securities Act, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan.

The Joint Bookrunners are acting exclusively for the Company and the selling shareholders and no-one else in connection with the transaction. They will not regard any other person as their respective client in relation thereto and will not be responsible to anyone other than the Company and the selling shareholders for providing the protections afforded to their respective clients, nor for providing advice in relation to the transaction, the contents of this announcement or any other matter referred to herein.