DEMIRE: Successful placement of 10 % cash capital increase several times oversubscribed
- Proceeds allow complete repayment of HFS bond and a significantly lower interest burden
- Net financial debt ratio falls to 64 %
- Further real estate investments planned
Frankfurt/Main, 31. August 2016 – DEMIRE Deutsche Mittelstand Real Estate AG’s (“DEMIRE”, ISIN DE000A0XFSF0) cash capital increase announced in an ad hoc information release on 11 August 2016 was fully placed with primarily institutional investors, as anticipated, in the context of a private placement. The offer was several times oversubscribed. The cash capital increase was recorded in the commercial register on 31 August 2016 and raised DEMIRE’s share capital by EUR 4,930,722.00. DEMIRE’s share capital currently amounts to a total of EUR 54,242,444.00 and includes the issue of subscription shares during the year that resulted from the exercise of conversion rights.
Of the net proceeds of EUR 17 million less cost from the cash capital increase, a sum of EUR 10 million will be used to fully repay the outstanding amount of the high-interest HFS bond and will lead to immediate interest savings of a further EUR 2.0 million annually. DEMIRE intends to use the remaining net proceeds to finance real estate purchases and strengthen its financial position.
With the HFS bond’s full repayment the weighted interest rate of the DEMIRE Group’s financial debt will sink from 5.1 % p.a. to roughly 4.4 % p.a. This will place the weighted interest rate within the planned corridor of 4.0 % to 4.5 % p.a., which is targeted for the end of 2016.
As a result of the cash capital increase, the net financial debt ratio fell from more than 66 % of the real estate holdings to roughly 64 %, bringing it closer to the planned year-end target rate of 60 %.
The publication of the Company’s Half-Year 2016 Financial Report is scheduled for 6 September 2016 and will be made available on the Company’s website at www.demire.ag under the Investor Relations section (http://www.demire.ag/en/investor-relations/reports-results/2016).
The Executive Board
The information in this release contains forward-looking statements that are subject to various risks and uncertainties. Such forward-looking statements are based on current forecasts, expectations and estimates of DEMIRE’s Executive Board at the time of their publication. Such statements constitute neither promises nor guarantees and are subject to various known and unknown risks and uncertainties, some of which are beyond DEMIRE’s influence. These risks and uncertainties may lead to actual results differing materially from statements that are mentioned herein. DEMIRE accepts no obligation to update or adjust the forward-looking statements contained in this release to reflect events or circumstances after the date of this release.