DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE Welcomes Strategic Initiative of Major Shareholders

DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Miscellaneous
15.11.2021 / 10:25
The issuer is solely responsible for the content of this announcement.


DEMIRE Welcomes Strategic Initiative of Major Shareholders

- Major shareholders Apollo and Wecken & Cie. consider selling their approx. 91% stake in the company

- Structured process started, no public placement of shares on the stock exchange planned

- DEMIRE has laid the foundations for future growth in recent years

- DEMIRE's Management Board and Supervisory Board support the process of Apollo and Wecken & Cie.

Langen, 15 November 2021: DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has been informed by its major shareholders Apollo and Wecken & Cie. that they have initiated a structured process to review strategic options regarding their combined stake of over 90%. The process is at an early stage and it is currently open whether or not the process will lead to a transaction. Apollo and Wecken & Cie. are considering, among other things, the sale of their entire shareholding to an investor capable of supporting DEMIRE in the next growth and value creation phase. Apollo and Wecken & Cie. are currently not planning to place their shares on the stock exchange.

In recent years, DEMIRE has laid the foundation for future profitable growth by institutionalising its platform. In the first three quarters of 2021, the portfolio value was increased to EUR 1.6 billion and FFO rose to EUR 30.4 million. In the interest of all shareholders, DEMIRE's Executive Board and Supervisory Board actively and constructively support the process of the major shareholders.

Ingo Hartlief, CEO, comments: "We are grateful to Apollo and Wecken & Cie. for their focused and constructive support in the institutionalisation and growth of DEMIRE over the past years. This enabled us to develop and successfully implement the REALize Potential strategy. Today, the portfolio structure is well balanced and delivers sustainably strong results, and we have also proven the resilience of our business model during Corona's constraints. We are happy to support our major shareholders in reviewing the strategic options for their stake in DEMIRE."

Tim Brückner, Chief Financial Officer, adds: "Apollo and Wecken & Cie. have also always constructively supported DEMIRE in the further development of the corporate organisation and the optimisation of the financing structure, enabling us to continuously improve key figures and results and reduce complexity. All shareholders and all stakeholders have benefited from this. DEMIRE is well prepared for further growth today."


About DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE - REALize Potential

DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial real estate in mid-sized cities and up-and-coming locations bordering metropolitan areas across German. The Company's particular strength lies in realising the potential of the properties at these locations while focusing on a range of properties that appeals to both regional and international tenants. As of 30 September 2021, DEMIRE's portfolio contains of 67 assets with lettable space totalling about 1 million sqm. cluding the proportionately acquired Cielo property in Frankfurt/Main, the market value exceeds EUR 1.6 billion.

The portfolio's focus on office properties with a blend of retail, hotel and logistics properties results in a return / risk structure that is appropriate for the commercial real estate segment. The Company places importance on long-term contracts with solvent tenants and the realisation of the properties' potential. DEMIRE anticipates continued stable and sustainable rental income along with solid value appreciation and expects the portfolio to grow significantly in the medium term. As it expands its portfolio, DEMIRE is concentrating on FFO-strong assets with potential and, at the same time, disposing of properties that are not in line with its strategy. DEMIRE is taking several steps to further the development of its operations and processes. Next to cost consciousness, the operating performance is set to improve through an active asset and portfolio management approach.

DEMIRE Deutsche Mittelstand Real Estate AG shares are listed in the Regulated Market (Prime Standard segment) of the Frankfurt Stock Exchange.


DEMIRE Deutsche Mittelstand Real Estate AG

Michael Tegeder
Head of Investor Relations & Corporate Finance
Phone: +49 6103 372 49 44

15.11.2021 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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