Capital increase: Subscription price for one new share of Deutsche Wohnen amounts to EUR 4.50

The management board of Deutsche Wohnen AG, with consent of the supervisory board, resolved on the subscription price of EUR 4.50 per share for the new ordinary bearer shares with no par value (Stückaktien) representing a pro rata amount of the share capital of EUR 1.00 per share and carrying full dividend rights as of 1 January 2009, based on the resolution of the extraordinary general meeting of 7 August 2009 on a capital increase against cash contributions with subscription rights. In the course of the capital increase a total of 55,440,000 new shares are to be issued and the share capital of Deutsche Wohnen AG is to be increased by EUR 55,440,000 from EUR 26,400,000 to EUR 81,840,000.

The shareholders of Deutsche Wohnen AG receive subscription rights and are entitled to acquire 21 shares for each 10 shares held. Subject to the approval of the prospectus by the German Federal Financial Services Authority (Bundesanstalt für Finanzdienstleistungsaufsicht  BaFin) and the publication of the approved prospectus, the subscription period will commence on 24 September and end on 7 October 2009. Unsubscribed shares will be placed privately immediately after the end of the subscription period.

OCM Luxembourg Real Estate Investments S.à r.l. and OCM Luxembourg Opportunities Investments S.à r.l. have made a binding commitment to the Joint Global Coordinators and the company, to subscribe for new shares in a total amount of EUR 51,500,000 corresponding to 20.6% of the total offering volume. The corresponding payments are in particular subject to the non-termination of the underwriting agreement by the Joint Global Coordinators and will be made upon final settlement of the new shares of the offering.

The company expects the aggregate gross proceeds from the capital increase to be approx. EUR 249.5 m. It is envisaged that about half of the expected aggregate net proceeds of approx. EUR 236.5 m will be used to reduce liabilities of the Deutsche Wohnen Group.
Subject to the approval and publication of the prospectus, the subscription rights (ISIN DE000A0Z2ZQ4 / WKN A0Z2ZQ) for the new shares will be traded on the regulated market of the Frankfurt Stock Exchange (floor trading) presumably from 24 September until and including 5 October 2009. Subject to the approval and publication of the prospectus, all shares already issued by the company will be listed “ex subscription right” on the regulated market of the Frankfurt Stock Exchange, presumably starting 24 September 2009. Subject to the approval and publication of the prospectus, the new shares are to be included in the current listing on the segment of the regulated market with further post admission obligations (Prime Standard) of the Frankfurt Stock Exchange presumably on 9 October 2009.

BofA Merrill Lynch and UBS Investment Bank will fully underwrite the capital increase as Joint Global Coordinators and Joint Bookrunners.

Michael Zahn, Chairman of the Management Board of Deutsche Wohnen AG states, “The capital increase strengthens our financial resources and allows us to benefit from the currently unsettled property market by means of selective asset purchases. We are pleased that the major shareholders of Deutsche Wohnen, who are owned by Oaktree Capital Management, fully support our strategy, including the capital increase.”