DEMIRE with successful lettings in its Stralsund property
Frankfurt/Main, 19. July 2016 – Frankfurt/Main, July 19, 2016 – DEMIRE Deutsche Mittelstand Real Estate AG has achieved sustainable lettings for its Stralsund property “Hanse Center”.
The commercial property, located in the Stralsund city centre directly next to the main train station, consists of roughly 13,000 square metres of rental space and had an area-based vacancy rate of approx. 30% at the time of its purchase as part of a portfolio transaction in early 2015. The property houses commercial and office space, the Intercity Hotel and a fitness studio.
A new 20-year rental agreement for roughly 1,600 square metres as of May 1, 2017 has now been signed with the local adult education centre – a stable tenant who will generate considerable traffic to the property. In addition, a new operator was found for the fitness studio whose rental agreement for 1,430 square metres of space is up for renewal in June 2017. The new operator will rent the space for 10 years as of July 2017.
Based on these recently signed rental contracts, Hanse-Center’s vacancy rate of 28% as of March 31, 2016 has more than halved to just 12%. At the same time, the weighted remaining lease term increased from roughly 10 years as at March 31, 2016 to 11.4 years based on new rentals and the early renewal.
Markus Drews, a DEMIRE Executive Board member responsible for the operating business commented: “These rental agreements have successfully repositioned the Hanse-Center property in Stralsund for the long term. The long-distance coach station planned to open directly next to the property will provide us even further potential added income.”
The Executive Board