DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE achieves letting success in new office portfolio

DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Real Estate

06.05.2019 / 08:20
The issuer is solely responsible for the content of this announcement.


- Closing of the office portfolio acquired at the end of 2018 on April 30
- DEMIRE Signs Seven New Lease Agreements, Letting a Total of 4,000 Square Metres
- Vacancy rate of value-add portfolio declines by 4.5 percent

Langen, 6 May 2019 - DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) just let around 4,000 square metres in properties belonging to the Limes Portfolio, acquired as recently as early November 2018. As a result, the vacancy rate of the portfolio of four office properties declines from 28.3 percent to 23.8 percent. The transaction for the assets acquired for around EUR 167 million in Essen, Cologne and Bad Vilbel as well as in Aschheim-Dornach was closed on 30 April 2019.

Three new tenants will be moving into the property in Bad Vilbel, two of them IT service providers and one a cafeteria operator. As a result, the property's vacancy rate, which had stood at 69 percent at the time of acquisition, has now dropped to 57 percent. Previously occupied by a single tenant, this property with a lettable area of around 26,000 square metres is being repositioned by DEMIRE as a multi-tenant scheme.

A unit of around 170 square metre in the two-storey office scheme in Cologne was let by DEMIRE to a retailer on a new lease. With this deal in place, the property, which has a lettable area of around 5,200 square metres, is now fully occupied. At the "Office Park Bredeney" multi-tenant office scheme in Essen, DEMIRE signed three new lease agreements. In-coming tenants for the combined floor area of around 830 square metres include an industrial company and an education provider, among others.

Three new tenants will be moving into the property in Bad Vilbel, two of them IT service providers and one a cafeteria operator. As a result, the property's vacancy rate, which had stood at 69 percent at the time of acquisition, has now dropped to 57 percent. Previously occupied by a single tenant, this property with a lettable area of around 26,000 square metres is being repositioned by DEMIRE as a multi-tenant scheme.

Ingo Hartlief, CEO of DEMIRE AG, commented: "Even before the closing, we were able to actively reduce the vacancy rate in the four purchased properties. This confirms our strategy of realising value appreciation through active asset management. We are delighted with the new properties for the DEMIRE portfolio."

Press Contact

RUECKERCONSULT GmbH
Jan Schweiger
Phone: +49 30 28 44 987 40
Mail: demire@rueckerconsult.de

Investor Relations
DEMIRE Deutsche Mittelstand Real Estate AG
Michael Tegeder
Phone: +49 6103 372 49 44
Mail: Tegeder@demire.ag

About DEMIRE Deutsche Mittelstand Real Estate AG

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. DEMIRE held a portfolio with a combined lettable area of around 1 million sqm and a fair market value of more than EUR 1 billion by the end of the 2018 financial year.

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.



06.05.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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