DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE successfully concludes new lease agreements for former Deutsche Telekom space in Bad Kreuznach
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Real Estate/Miscellaneous
DEMIRE successfully concludes new lease agreements for former Deutsche Telekom space in Bad Kreuznach
Frankfurt/Main, July 26, 2016 - DEMIRE Deutsche Mittelstand Real Estate AG has successfully repositioned an office property in Bad Kreuznach by leasing it to the city's administration. The property had been previously leased, in its entirety, by Deutsche Telekom.
The commercial property located in the city centre of Bad Kreuznach consists of roughly 7,800 square metres of lettable space and had a vacancy rate of approx. 47 % at the time DEMIRE purchased it as part of a portfolio transaction in early 2015.
New lease agreements with Bad Kreuznach's city administration concluded in the fourth quarter of 2015 had already more than halved the property's vacancy rate. Additional leases concluded in the current fiscal year, some of which will not take effect until the turn of the year 2016/2017, will reduce the vacancy rate by more than 80 %. At the same time, contractual annual leases have increased by 77% and will amount to roughly EURk 430 starting in 2017.
Markus Drews, a DEMIRE Executive Board member responsible for the operating business commented: "The Bad Kreuznach property's excellent location and floor plan are ideal for the city administration's needs. Several agencies such as the registration office, administrative authority and family registry office are now located at the property".
The Executive Board
DEMIRE Deutsche Mittelstand Real Estate AG
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 March 31, 2016, DEMIRE held real estate consisting of 180 properties with a market value of EUR 971 million. As at the reporting date, contractual rents had been firmly agreed upon in the amount of EUR 74.2 million (at an occupancy rate of 87.0 %) for a term of 5.5 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.
2016-07-26 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||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|
|Listed:||Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|