Corporate News

DEMIRE completes expansion for the internal representation of all core competencies

  • Acquires 51 percent in an asset management company
  • Purchases 51 percent of facility management company
  • Increases interest in property management platform to 100 percent
  • Entire value chain will be internally represented

Frankfurt/Main, 27. May 2015 – DEMIRE Deutsche Mittelstand Real Estate AG (“DEMIRE”, ISIN DE000A0XFSF0) today announced that it acquired a 51 percent interest in the asset management company Panacea Property GmbH and a 51 percent interest in the facility management company Praedia Haus & Gartenservice GmbH. The real estate group also increased its stake in the property management platform, DEMIRE Immobilien Management GmbH, from 51 percent to 100 percent (see our corporate news dated 15 January 2015). The parties to the transaction have agreed not to disclose the purchase prices.

With the purchase of these interests, DEMIRE has completed its expansion for the internal representation of all core competencies. These three new companies allow the real estate group to represent the entire value chain of property management internally and further optimise the administration of its commercial real estate portfolio in Germany.

Andreas Steyer, the Speaker of the Executive Board of DEMIRE, commented: “These three acquisitions fit perfectly with our growth strategy and enable us to better administer and manage our portfolio. With these acquisitions, we have achieved another milestone in our successful growth strategy, which aims to make us a major player in the German commercial real estate market.”

“With the internal representation of all core competencies, we will achieve a significant improvement in our efficiency and will be able to achieve even better returns on our properties in the future”, said Markus Drews of DEMIRE’s Executive Board. The vertical expansion of the organisation allows us to be close to our customers, the properties and the figures right from our first contact with interested tenants through daily administration and reporting. This has significantly reduced our reaction times. In a tight market what matters is a professional setup and speed.”

The asset management company currently has assets under management of approximately EUR 200 million. By acquiring a majority interest in the company, DEMIRE can internally represent rental strategies and reporting more efficiently. The managing director and the employees, who are recognised experts in asset management, are now contributing their expertise to the DEMIRE real estate group. DEMIRE wants to expand its asset management business further.

The facility management company will gradually assume the technical real estate management and comprehensively manage the buidlings of all properties of the DEMIRE real estate group.

With the property management company, renamed as DEMIRE Immobilien Management GmbH, the real estate group now has a platform that ensures the efficient and professional management of its growing commercial real estate portfolio. With Michael Weise, who continues to act as managing director along with DEMIRE’s member of the Executive Board, Markus Drews, the real estate group has won a proven expert in property management. Mr. Weise has made a long-term commitment to the Company and will draw from his extensive experience to sustainably organise the Company. As stated by Michael Weise, managing director of DEMIRE Immobilien Management GmbH: “This cooperation provides us an opportunity to create a flat organisation with a strong partner like DEMIRE and our long-term employees. We intend to provide solutions and the efficient organisation of our structures have resulted in our receipt of very positive feedback after just a few short weeks.”

Meanwhile, through the completely integrated value chain of all companies, the rapidly growing DEMIRE real estate group can more flexibly and transparently execute the management of its commercial real estate portfolio within the Group. In addition to the faster availability of economic indicators, the improvements in management, reporting, and accounting will ease decision making and improve efficiency.

The Executive Board

Über die DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE Deutsche Mittelstand Real Estate AG
Robert-Bosch-Straße 11
63225 Langen
phone: +49 (0) 6103 – 372 49-0
fax: +49 (0) 6103 – 372 49-11
email: ir_at_demire.ag
Web: www.demire.ag

Michael Tegeder
Head of Investor Relations
& Corporate Finance

phone: +49 (0) 6103 37249 44
fax: +49 (0) 6103 37249 11
email: ir_at_demire.ag

Feldhoff & Cie. GmbH
Herr Markus Heber
phone: +49 69 26 48 677 – 19
email: mh_at_feldhoff-cie.de