DEMIRE leases 1,700 m² in the Gutenberggalerie in Leipzig

• Softline AG extends lease agreement and increases office space to a total of 1,700 m²

• 96 per cent of the Gutenberggalerie is rented

Langen, 16 October 2018 - DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has rented approximately 1,700 m² of office space to Softline AG in the Gutenberggalerie in Leipzig. Softline AG is the parent company of the Softline Group, which is a European-wide IT consulting firm focused on the long-term expansion of its IT consulting and services business. The company, which has been a tenant in the property since 2011, extended its lease ahead of schedule and rented around 300 m² of additional office space. The new lease has a term of more than ten years and begins after the completion of modernisation measures.

The EPRA vacancy rate in the Gutenberggalerie will now drop to around four percent. When the property was acquired by DEMIRE in April 2015, the EPRA vacancy rate was still around 30 percent.

The property, which is located near the centre of Germany's eleventh largest city, has a total of around 23,000 m² of lettable space - around 11,500 m² of which is office space. There is also a 4-star hotel in the building complex, which was built in 1994.

Ralf Kind, Executive Board member of DEMIRE, explains: "The fact that our long-term tenant Softline extended its lease for an additional 10 years ahead of schedule, demonstrates that the Gutenberggalerie in Leipzig offers companies attractive space and underscores the fact that we have an attractive rental concept."

Press Contact
RUECKERCONSULT GmbH
Wallstraße 16
D-10179 Berlin
Phone: +49 30 28 44 987 65
demire@rueckerconsult.de
 
Contact Details
DEMIRE Deutsche Mittelstand Real Estate AG
Robert-Bosch-Straße 11
D-63225 Langen
Phone: +49 (0) 6103 - 372 49 - 0
Fax: +49 (0) 6103 - 372 49 - 11
ir@demire.ag
www.demire.ag
 
About DEMIRE Deutsche Mittelstand Real Estate AG
 
DEMIRE - First in Secondary Locations
DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up-and-coming locations bordering German metropolitan areas. The company's specific forte is its focus on these second-tier cities - its claim being "First in Secondary Locations" - and on a range of assets that appeals to both internationally active and regionally rooted tenants. Having expanded rapidly between 2013 and 2016 both by buying single properties and by acquiring equity interests, DEMIRE held a portfolio with a combined lettable area of around 1 million sqm and a fair market value of more than EUR 1.1 billion by the end of the first half of 2018.
 
The portfolio focus on office, retail and logistics assets results in exactly the kind of risk/reward structure that DEMIRE considers appropriate for the business line of commercial real estate. The Company puts a premium on long-term contracts with solvent tenants in anticipation of stable and sustainable rent revenues. DEMIRE has set itself the goal to keep optimising its corporate structure. To this end, it pursue an active property management approach out of the conviction that it is the best way to achieve economies of scale and portfolio optimisations. DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard segment of the Frankfurt Stock Exchange.