DEMIRE significantly improves key figures of Logistik Park Leipzig
- Since acquisition in mid-2015: Net rent, excluding utilities + 14 %
- WALT advances by +44 %
- Continued progress in key figures expected
Frankfurt, 27 November 2015 – The first signs of success following DEMIRE Deutsche Mittelstand Real Estate AG’s (“DEMIRE”, ISIN DE000A0XFSF0) purchase of the Logistik Park Leipzig in mid-July 2015 are now being reflected in the key figures. Thanks to the integrated platform that was built in the course of 2015 and contains the in-house asset, property and facility management activities, net rent excluding utilities managed to rise by 14 percent from its level of EUR 3.6 million at the time of the purchase to its current level of EUR 4.1 million. DEMIRE also achieved an extension in the lease terms, which resulted in a rise in the weighted average lease term, or WALT, by roughly 44 percent to approximately 2.7 years.
Logistik Park Leipzig is a former logistics complex that belonged to Quelle. The complex has total rental space of roughly 184,000 m² located on property of around 330,000 m² about 10 km north of the Leipzig city centre and contains approximately 164,000 m² of warehouse space, almost 20,000 m² of office space and about 35,000m² of surrounding area. The property also has two areas for expansion with roughly 38,000 m² that already have building rights. Around 60 percent of the total space is currently leased and generates annualised net rent of around EUR 4.1 million. Based on encouraging discussions, DEMIRE expects to extract further potential from this extremely interesting logistics complex as indicated by the number of applications from potential tenants. The attraction of Logistik Park Leipzig stems from its excellent location near the trade fair centre and the BMW plant. The Leipzig region is also experiencing high demand for logistics space.
“Within only a few short months, we were able to significantly improve the key figures of this large logistics property. Based on the number of rental applicants we expect to drop the vacancy rate over the medium term to below 10 % for this ideally situated property. We should also see a corresponding rise in the relevant operational key figures and thus continue to add significant value. This positive development not only confirms the potential of the favourably priced logistics property but also attests to the hard work of our in-house asset and property management. Overall, we see a validation of our acquisition strategy that prescribes a favourable entry into an insufficiently managed real estate with a subsequent rise in the potential value,” explained DEMIRE’s member of the Executive Board Markus Drews.
The Executive Board
DEMIRE Deutsche Mittelstand Real Estate AG
Lyoner Straße 32
60528 Frankfurt am Main
Phone: +49 (0) 69-719 189 79 0
Telefax: +49 (0) 69-719 189 79 11
Phone: +49 (0) 511 47 40 23 10