DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE with successful lettings in its Stralsund property
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Real Estate/Miscellaneous
DEMIRE with successful lettings in its Stralsund property
Frankfurt/Main, July 19, 2016 - DEMIRE Deutsche Mittelstand Real Estate AG has achieved sustainable lettings for its Stralsund property "Hanse Center".
The commercial property, located in the Stralsund city centre directly next to the main train station, consists of roughly 13,000 square metres of rental space and had an area-based vacancy rate of approx. 30% at the time of its purchase as part of a portfolio transaction in early 2015. The property houses commercial and office space, the Intercity Hotel and a fitness studio.
A new 20-year rental agreement for roughly 1,600 square metres as of May 1, 2017 has now been signed with the local adult education centre - a stable tenant who will generate considerable traffic to the property. In addition, a new operator was found for the fitness studio whose rental agreement for 1,430 square metres of space is up for renewal in June 2017. The new operator will rent the space for 10 years as of July 2017.
Based on these recently signed rental contracts, Hanse-Center's vacancy rate of 28% as of March 31, 2016 has more than halved to just 12%. At the same time, the weighted remaining lease term increased from roughly 10 years as at March 31, 2016 to 11.4 years based on new rentals and the early renewal.
Markus Drews, a DEMIRE Executive Board member responsible for the operating business commented: "These rental agreements have successfully repositioned the Hanse-Center property in Stralsund for the long term. The long-distance coach station planned to open directly next to the property will provide us even further potential added income."
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.
DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard segment of the German Stock Exchange (Deutsche Börse) in Frankfurt.
|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|