DEMIRE acquires the majority stake in a real estate management platform
Frankfurt/Main, January 15, 2015 – The Executive Board and Supervisory Board of DEMIRE Deutsche Mittelstand Real Estate AG (“DEMIRE”, ISIN DE000A0XFSF0) have decided to acquire a 51 percent interest in a real estate management company. The relevant agreements were signed today. The company will operate under the name DEMIRE Real Estate Management GmbH. DEMIRE has a call option for the remaining 49 percent. The company is generating positive cash flows and will make a sustainable earnings contribution to the Group’s results.
This transaction follows the growth of the Company’s commercial real estate portfolio in 2014 to more than 380,000 sqm. The establishment of fully-integrated real estate management is a key success factor in ensuring the efficient and professional management of the portfolio, which is destined to continue to grow. This will achieve our objective of presenting the portfolio’s economic key figures more transparently by way of a flexible and integrated management and will also lead to efficiency gains in real estate management, reporting, and accounting, and to quicker decision-making.
Mr. Markus Drews (Member of the Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG) and Mr. Michael Weise will act as Managing Directors of the new DEMIRE Real Estate Management platform. Mr. Weise is recognised by the market as a time-honoured and well-known real estate expert. He previously held management and executive positions at Aareal Bank AG and Barg Holding AG, among others. In these positions he was responsible for the real estate management of more than 65,000 residential and commercial properties and directed approximately 150 employees. In addition to his own expertise, Mr. Weise will also be supported by longtime and qualified employees.
“Real estate management is the core task of real estate portfolio holders. Therefore, this acquisition fits in perfectly with our growth strategy. Furthermore, we have the opportunity to handle the tasks together with a renowned expert. This cooperation will allow us to scale our portfolio and the required management capacity in line with our needs”, explained Markus Drews. Michael Weise added: “The joint venture will make it much easier to manage the portfolio. DEMIRE Real Estate Management GmbH, as an entity of the DEMIRE Group, will perform all of the necessary services and, in doing so, will represent the core competence in the management of the properties”.
The Executive Board