Corporate News

DEMIRE finalises its largest transaction in the Company’s history

  • 107 properties containing rentable space of almost 270,000 sqm
  • Yearly net rental income of more than EUR 19 million
  • Overall portfolio expansion ahead of plan
  • Positive outlook for 2015

Frankfurt/Main, December 12, 2014DEMIRE Deutsche Mittelstand Real Estate AG (“DEMIRE”, ISIN DE000A0XFSF0) announces the closing of the largest transaction in the Company’s history. The acquisition of the real estate portfolio took place on November 13, 2014 (see ad hoc announcement of November 13, 2014). The commercial real estate portfolio contains 107 properties and rentable space totalling almost 270,000 sqm. The portfolio contains properties predominantly rented to tenants with solid credit ratings and currently generates net rental income of more than EUR 19 million annually. The portfolio’s properties are mainly located in Düsseldorf, Eschborn, Bayreuth, Bremen, Kempten, Ulm, and Darmstadt.

Andreas Steyer, Member of the Executive Board explains: “With the closing of this transaction, it has become clear that we are not only ahead of our financial year 2014 plan with regard to the realignment of DEMIRE as a holder of German commercial real estate, but we have also exceeded our targets for expanding our real estate portfolio. The constitution of the new portfolio makes an important contribution to the aspect of risk diversification contained in our investment strategy and ensures DEMIRE Group’s future growth. At the same time, we look to the future with confidence thanks to the broad supply of commercial real estate projects. In 2015, our aim is to continue pursuing the expansion of both the Company and the portfolio that we had begun in 2014. Our focus is on sales multiples that support the generation of free cash flow within our refinancing framework and produce sustainable returns after acquisitions.”

Markus Drews, also Member of the Executive Board of DEMIRE adds: “The majority of the acquired portfolio is used as office space and has long-term rental contracts. The structure of this portfolio is well suited to our acquisition strategy of acquiring office and logistic properties in sustainable locations and that have a good mix of creditworthy tenants and provide an economically reasonable mix of rental agreement maturities. We believe that active management is a key factor in promptly establishing ourselves in the commercial real estate market. Particularly as a listed company, we see opportunities in the commercial real estate market that offer investors a good alternative to funds”.

The Executive Board


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