Ad hoc Mitteilung
DEMIRE acquires commercial real estate portfolio containing approximately 144,000 m² of rental space
Ad hoc announcement according to section 15 WpHG
- Net rent, excluding utilities (actual): roughly EUR 14.8 million
- All locations have long-term rental contracts with Deutsche Telekom
- Secured, long-term debt structure with high redemption
Frankfurt/Main, 01. July 2015 – With the consent of the Supervisory Board, the Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG (“DEMIRE”, ISIN DE000A0XFSF0) concluded a purchase agreement on 30 June 2015 to acquire a 94 percent interest in Germavest Real Estate S.á.r.l. In the cities of Ansbach, Bonn, Flensburg, Freiburg, Regensburg and Stahnsdorf, Germavest Real Estate S.á.r.l. has a commercial real estate portfolio containing 143,788 m² of rental space as well as 1,171 underground and free-standing parking spaces. All of the 6 locations have long-term rental contracts with Deutsche Telekom AG. The net annual rent, excluding utilities and based on the properties’ current full occupancy, amounts to roughly EUR 14.8 million and will rise periodically based on a contractually agreed fixed annual indexation. The largest property with approximately 38,000 m² has a rental agreement spanning 10 years.
With the acquisition of Germavest Real Estate S.á.r.l., a long-term financing structure should be taken over whose interest rate leads to a reduction in DEMIRE’s average interest rate. The financing will be repaid by means of accelerated payments, which will lead to a sustainable increase in DEMIRE’s equity. Based on the portfolio’s favourable return ratios, DEMIRE expects an additional contribution to be made to the positive cash flow of the entire Group portfolio.
The acquisition of the 6 properties enlarges the commercial real estate portfolio in the context of the growth strategy of the Frankfurt-based real estate group to now over 750,000 m² of space with annual rental income of roughly EUR 47.6 million.
Further details of the transaction have not been disclosed. The transaction is still subject to the existing financing being assumed by DEMIRE.
The Executive Board
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.