DEMIRE plans sell-off of legacy portfolio in the third quarter of 2015
- Legacy portfolio to take form of a Dutch BV
- Proceeds of EUR 7.36 million (carrying amounts) expected
- Company’s focus on German commercial and logistics real estate
Frankfurt/Main, 7 July 2015 – DEMIRE Deutsche Mittelstand Real Estate AG (“DEMIRE”, ISIN DE000A0XFSF0) today announced its plans for structuring and disposing of the legacy portfolio acquired prior to 2014. Before the change in DEMIRE’s focus in 2014 to German commercial real estate, the Company – under the name of “MAGNAT Real Estate AG” – acquired real estate, project companies, shelf companies and properties in a variety of countries including the Netherlands, the Ukraine, Austria and Georgia, among others. Thirty of the roughly sixty companies included in the legacy portfolio were either sold, liquidated or merged. The form of a Dutch BV, which contains the remaining companies, was streamlined once again significantly reducing its complexity. The goals of the structural changes that simplified the organisation under corporate law in the legacy portfolio were to significantly reduce the fixed costs and to simplify the disposal of the entire legacy portfolio by the year’s end. The Executive Board also expects proceeds from the disposal in the order of the carrying amount of EUR 7.36 million. The assumption of debt or other legacy obligations are neither expected nor foreseeable at this time.
Markus Drews of the DEMIRE Executive Board: “With the finalisation of the planned sale of the legacy portfolio by the year’s end, we will have completed DEMIRE’s realignment. According to our plans, our portfolio will exclusively hold German commercial and logistics real estate as of the fourth quarter of 2015. At the same time, the EUR 7.36 million in expected proceeds will provide further opportunities to increase our holdings in Germany.”
The Executive Board