DEMIRE completes expansion for the internal representation of all core competencies

- Acquires 51 percent in an asset management company

- Purchases 51 percent of facility management company

- Increases interest in property management platform to 100 percent

- Entire value chain will be internally represented

 

Frankfurt/Main, 27 May 2015 - DEMIRE Deutsche Mittelstand Real Estate AG ("DEMIRE", ISIN DE000A0XFSF0) today announced that it acquired a 51 percent interest in the asset management company Panacea Property GmbH and a 51 percent interest in the facility management company Praedia Haus & Gartenservice GmbH. The real estate group also increased its stake in the property management platform, DEMIRE Immobilien Management GmbH, from 51 percent to 100 percent (see our corporate news dated 15 January 2015). The parties to the transaction have agreed not to disclose the purchase prices.

With the purchase of these interests, DEMIRE has completed its expansion for the internal representation of all core competencies. These three new companies allow the real estate group to represent the entire value chain of property management internally and further optimise the administration of its commercial real estate portfolio in Germany.

Andreas Steyer, the Speaker of the Executive Board of DEMIRE, commented: "These three acquisitions fit perfectly with our growth strategy and enable us to better administer and manage our portfolio. With these acquisitions, we have achieved another milestone in our successful growth strategy, which aims to make us a major player in the German commercial real estate market."

"With the internal representation of all core competencies, we will achieve a significant improvement in our efficiency and will be able to achieve even better returns on our properties in the future", said Markus Drews of DEMIRE's Executive Board. The vertical expansion of the organisation allows us to be close to our customers, the properties and the figures right from our first contact with interested tenants through daily administration and reporting. This has significantly reduced our reaction times. In a tight market what matters is a professional setup and speed."

The asset management company currently has assets under management of approximately EUR 200 million. By acquiring a majority interest in the company, DEMIRE can internally represent rental strategies and reporting more efficiently. The managing director and the employees, who are recognised experts in asset management, are now contributing their expertise to the DEMIRE real estate group. DEMIRE wants to expand its asset management business further.

The facility management company will gradually assume the technical real estate management and comprehensively manage the buidlings of all properties of the DEMIRE real estate group.

With the property management company, renamed as DEMIRE Immobilien Management GmbH, the real estate group now has a platform that ensures the efficient and professional management of its growing commercial real estate portfolio. With Michael Weise, who continues to act as managing director along with DEMIRE's member of the Executive Board, Markus Drews, the real estate group has won a proven expert in property management. Mr. Weise has made a long-term commitment to the Company and will draw from his extensive experience to sustainably organise the Company. As stated by Michael Weise, managing director of DEMIRE Immobilien Management GmbH: "This cooperation provides us an opportunity to create a flat organisation with a strong partner like DEMIRE and our long-term employees. We intend to provide solutions and the efficient organisation of our structures have resulted in our receipt of very positive feedback after just a few short weeks."

Meanwhile, through the completely integrated value chain of all companies, the rapidly growing DEMIRE real estate group can more flexibly and transparently execute the management of its commercial real estate portfolio within the Group. In addition to the faster availability of economic indicators, the improvements in management, reporting, and accounting will ease decision making and improve efficiency.

The Executive Board

 

About DEMIRE Deutsche Mittelstand Real Estate

Leading holder of commercial real estate

DEMIRE Deutsche Mittelstand Real Estate AG is transforming itself into a leading holder of German commercial real estate. The real estate group, headquartered in Frankfurt/Main, pursues a growth strategy focussed on German office properties. The commercial real estate portfolio currently consists of approximately 410,000 m² of rentable space. The annualised net rental income excluding utilities amounts to approximately EUR 29 million. The regional focus is in Bavaria and North Rhine Westphalia. The internal Asset & Property and Facility Management activities ensure the optimum management of the holdings.

The DEMIRE real estate group pursues a buy-and-hold-strategy combined with pro-active portfolio management. It is concentrated on both the value-added and core-plus investment approaches. The combination of these two approaches offers a balanced risk-return ratio and attractive opportunities.

The DEMIRE real estate group is the successor company of Magnat Real Estate AG which was founded in 2006. Due to its lean structure, the real estate group is able to take action quickly and in a flexible manner. The shares of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN DE000A0XFSF0) are listed in the regulated market (General Standard Segment) of the Frankfurt Stock Exchange. The share performance impressively shows the real estate group's successful business development.

 

Contact

DEMIRE Deutsche Mittelstand Real Estate AG
Lyoner Straße 32
60528 Frankfurt am Main
Phone: +49 (0) 69-719 189 79 0
Fax: +49 (0) 69-719 189 79 11
Email: ir@demire.ag
Web: www.demire.ag

Investor Relations
GFEI Aktiengesellschaft
Lars Kuhnke
Phone: +49 (0) 511 47 40 23 10
Email: ir@demire.ag