DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE continues to focus on core business and sells financial investment in project development company for a high capital gain
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Real Estate/Disposal
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."
DEMIRE Deutsche Mittelstand Real Estate AG
Phone: +49 (0) 6103 - 372 49 - 0
Fax: +49 (0) 6103 - 372 49 - 11
About DEMIRE - First in secondary locations
DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up and coming areas bordering German metropolitan areas. As at September 30, 2016, DEMIRE held real estate with a market value of EUR 985 million. As at the reporting date, annual contractual rents had been firmly agreed upon in the amount of EUR 75.5 million for an average term of 5.2 years.
DEMIRE aims to maintain its corporate organisation as lean as possible, although it still believes that economies of scale and portfolio optimisation are best achieved by having its own in-house asset, property and facility management. This safeguards the Company's business expertise and, equally important, allows the Company to maintain direct contact with the customer.
DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard segment of the Deutsche Börse in Frankfurt.
|Company:||DEMIRE Deutsche Mittelstand Real Estate AG|
|Robert-Bosch-Straße 11 im 'the eleven'|
|63225 Langen (Hessen)|
|Phone:||+49 6103 37249-0|
|Fax:||+49 6103 37249-11|
|Listed:||Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|