DEMIRE continues to focus on core business and sells financial investment in project development company for a high capital gain
Langen, February 10, 2017 – DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has sold its 25 % interest in SQUADRA Immobilien GmbH & Co. KGaA to a German investor for EUR 7.2 million. SQUADRA is a project development company that DEMIRE had already held an interest in before refocusing its strategy on portfolio management in secondary locations. The only remaining SQUADRA project is the Blue Towers in Frankfurt/Main-Niederrad, which was also the location of DEMIRE’s headquarters until December 2016. The DEMIRE Group generated a capital gain of around EUR 4.2 million from the sale of the interest, which will be retroactively recognised in the financial statements as of 31, 2016.
Prof. Andreas Steyer, Speaker of the Executive Board, in his comments on the transaction: “Project development activities are not part of our business model. With the sale of the SQUADRA stake, we have separated ourselves from a further non-core activity and have consistently followed the DEMIRE strategy of focussing on its core businesses of portfolio management in German secondary locations.”
Frankfurt/Main, 10. February 2017 –