Ad hoc Mitteilung
DEMIRE acquires Kurfürstengalerie in Kassel
Ad hoc announcement according to section 15 WpHG
Frankfurt/Main, 09. July 2015 – Today, the Executive Board of DEMIRE Deutsche Mittelstand Real Estate AG (“DEMIRE”, ISIN DE000A0XFSF0) concluded a contract to purchase a 94.9% interest in Kurfürster Galerie GmbH, the owner of the Kurfürsten Galerie in Kassel. The retail property, located directly across from the “City-Point Kassel Einkaufszentrums” in the centre of Hesse’s third largest city, has a total rental space of approximately 21,000 m². The property includes the largest parking garage in the northern inner city of Kassel with approximately 600 parking spaces. The commercial property, which was Kassel’s first shopping centre in 1991, has a net rent, excluding utilities, of around EUR 3.9 million. DEMIRE aims to reduce the current vacancy rate of 6% by carrying out investments. The tenants include a hotel, casino, retail and office space as well as doctors’ practices. By acquiring the GmbH, DEMIRE also intends to assume the existing long-term loans at attractive interest conditions, which are below DEMIRE’s average refinancing costs. With this transaction, DEMIRE will acquire its first retail project and thus extend the focus of its overall portfolio to include a third asset class next to office and logistics properties. In addition, DEMIRE gains access to a management unit specialised in centre management. The parties agreed not to disclose the purchase price or any additional details. The closing of the contract is subject to the consent of DEMIRE’s Supervisory Board and the approval of the bank financing Kurfürster Immobilien GmbH, among others.
The information in this release contains forward-looking statements that are subject to various risks and uncertainties. Such forward-looking statements are based on current forecasts, expectations and estimates of DEMIRE’s Executive Board at the time of their publication. Such statements constitute neither promises nor guarantees and are subject to various known and unknown risks and uncertainties, some of which are beyond DEMIRE’s influence. These risks and uncertainties may lead to actual results differing materially from statements that are mentioned herein. DEMIRE accepts no obligation to update or adjust the forward-looking statements contained in this release to reflect events or circumstances after the date of this release.