DEMIRE: Successful placement of 10 % cash capital increase several times oversubscribed

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

2016-09-01 / 07:30
The issuer is solely responsible for the content of this announcement.


DEMIRE: Successful placement of 10 % cash capital increase several times oversubscribed

- Proceeds allow complete repayment of HFS bond and a significantly lower
  interest burden

- Net financial debt ratio falls to 64 %

- Further real estate investments planned
 

Frankfurt/Main, 1 September 2016 - DEMIRE Deutsche Mittelstand Real Estate AG's ("DEMIRE", ISIN DE000A0XFSF0) cash capital increase announced in an ad hoc information release on 11 August 2016 was fully placed with primarily institutional investors, as anticipated, in the context of a private placement. The offer was several times oversubscribed. The cash capital increase was recorded in the commercial register on 31 August 2016 and raised DEMIRE's share capital by EUR 4,930,722.00. DEMIRE's share capital currently amounts to a total of EUR 54,242,444.00 and includes the issue of subscription shares during the year that resulted from the exercise of conversion rights.

Of the net proceeds of EUR 17 million less cost from the cash capital increase, a sum of EUR 10 million will be used to fully repay the outstanding amount of the high-interest HFS bond and will lead to immediate interest savings of a further EUR 2.0 million annually. DEMIRE intends to use the remaining net proceeds to finance real estate purchases and strengthen its financial position.

With the HFS bond's full repayment the weighted interest rate of the DEMIRE Group's financial debt will sink from 5.1 % p.a. to roughly 4.4 % p.a.. This will place the weighted interest rate within the planned corridor of 4.0 % to 4.5 % p.a., which is targeted for the end of 2016.

As a result of the cash capital increase, the net financial debt ratio fell from more than 66 % of the real estate holdings to roughly 64 %, bringing it closer to the planned year-end target rate of 60 %.

The publication of the Company's Half-Year 2016 Financial Report is scheduled for 6 September 2016 and will be made available on the Company's website at www.demire.ag under the Investor Relations section (https://www.demire.ag/en/investor-relations/reports-results/2016).

The Executive Board
 

Disclaimer
The information in this release contains forward-looking statements that are subject to various risks and uncertainties. Such forward-looking statements are based on current forecasts, expectations and estimates of DEMIRE's Executive Board at the time of their publication. Such statements constitute neither promises nor guarantees and are subject to various known and unknown risks and uncertainties, some of which are beyond DEMIRE's influence. These risks and uncertainties may lead to actual results differing materially from statements that are mentioned herein. DEMIRE accepts no obligation to update or adjust the forward-looking statements contained in this release to reflect events or circumstances after the date of this release.
 

Contact information

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
Email: ir@demire.ag
Web: www.demire.ag

Investor Relations
GFEI Aktiengesellschaft
Lars Kuhnke
Phone: +49 (0) 511 47 40 23 10
Email: ir@demire.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 Deutsche Börse in Frankfurt.



2016-09-01 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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