DEMIRE leases an additional 2,700 square metres in Leipzig's Gutenberggalerie in 2017 and reaches almost full occupancy
- Lease agreements concluded for around 2,100 square metres of office space
- Sport-Tiedje set to open a branch with roughly 500 square metres in the Gutenbergalerie in October 2017
- Vacancy rate drops from 30 % to 7 %
Langen, 29. September 2017 – DEMIRE Deutsche Mittelstand Real Estate AG has successfully leased around 2,700 square metres of commercial space in Leipzig’s Gutenberggalerie since the beginning of 2017. Roughly 2,100 square metres of this space is office space and around 600 square metres is retail space. New tenants include Sport Tiedje, which has concluded a long-term lease for around 500 square metres. The company, which is Europe’s leading provider of home fitness equipment, has opened a branch in Leipzig in the Gutenberggalerie on 23 September. DEMIRE has also attracted other new tenants including Webteam Leipzig, IPN Braintower, engineering firm D&O and Independent Living.
The recent leasing success has brought the Gutenbergalerie’s vacancy rate down to a level of roughly 7 percent, or close to full occupancy. The vacancy rate at the time DEMIRE acquired the property in April 2015 was still around 30 percent. The annualised rental income, including the recent new leases, has risen by approximately 30 percent from around EUR 1.3 million at the time of its acquisition to today’s total of roughly EUR 1.7 million.
The property, located in the centre of Germany’s 11th largest city, has a total of approximately 23,000 square metres of lettable space, including 11,900 square metres of office space. The building complex, constructed in 1994, also contains a 4-star hotel with 122 rooms. The property also contains an underground garage with more than 300 parking spaces.
Markus Drews, Member of the Executive Board of DEMIRE, explains: “Once again, our in-house, fully integrated management unit has successfully repositioned a property and brought it up to a level of almost full occupancy. We are delighted to add an ideal complement to our tenant mix in the Gutenberggalerie with our latest lease to Sport-Tiedje. The solid leasing success since our purchase of the property shows not only that commercial areas with easy traffic access in the central locations of so-called “secondary cities” are enjoying vigorous demand, but also that commercial properties with vacancies offer attractive value-added potential. This success also confirms DEMIRE’s attractive business model of investing for the long term in high-yield properties in secondary locations.”