DEMIRE Deutsche Mittelstand Real Estate AG: Successful start of boosting portfolio activity

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

17.10.2019 / 08:00
The issuer is solely responsible for the content of this announcement.

- 5 properties sold at a price of approximately EUR 32.2 million
- Disposal gains of roughly EUR 8 million achieved
- Most recent valuation exceeded by around 30%

Langen, 17 October 2019 - DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) is systematically implementing the REALize Potential strategy, which includes acquisitions, as well as the selective sale of real estate. Five office and retail properties were sold in individual transactions in Bremen, Rendsburg, Stahnsdorf, Wahlstedt and Wurzen.

The office property in Stahnsdorf is the largest of the properties sold with a sales price of EUR 24.4 million. This property, which is currently leased to Deutsche Telekom, is a former barracks area with 17,110 square metres of lettable space located at the southern edge of the town. The buyer is an experienced project developer with local expertise.

The four other properties sold are part of DEMIRE AG's disposal programme for small properties. The aim of these sales is to focus the portfolio more strongly on institutional property sizes, a criterion not met by the latest small properties sold, which had an average value of EUR 1.9 million. This programme will increase the average property size of the portfolio while reducing the administrative burden.

Ingo Hartlief, CEO of DEMIRE AG, in his comments on the sale, said: "The REALize Potential strategy envisages a boost to the portfolio's activity, as well as further institutionalisation of the portfolio, in addition to the last reported purchases. We are pleased to announce the first successes in the implementation of the sales. The prices achieved emphatically demonstrate not only the conservative valuation of our real estate but also that we are successful in fully realising the real value potential. We will use the sales proceeds for DEMIRE's continued growth."

Investor Relations:

DEMIRE - Deutsche Mittelstand Real Estate AG

Michael Tegeder
Phone: +49 6103 - 372 49 44

DEMIRE - REALize Potential

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 holds a portfolio with a combined lettable area of around 1.1 million m² and a market value of more than EUR 1.4 billion.
The portfolio focus on office, retail and logistics assets results in exactly the kind of risk/return 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 rental revenues. DEMIRE has set itself the goal to keep optimising its corporate structure. To this end, it pursues an active property management approach, convinced 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.

17.10.2019 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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