DEMIRE Achieves Full Occupancy at Kurfürstengalerie in Kassel within only ten Months
- Eurofit GmbH rents additional 1,100 square metres at least through 2025
Langen, 19. June 2017 – Langen, 19. June 2017 – The listed company DEMIRE Deutsche Mittelstand Real Estate AG let another commercial unit of around 1,100 square metres at its Kurfürstengalerie asset in Kassel to Eurofit GmbH. The latter company, which has been renting premises in the property since August 2014, will use the extra space to expand its gym, and is expected to take over the premises as of 01/01/2018, following the approval and completion of planned construction measures. The lease was signed for a fixed term of seven years. On top of that, it includes options for two lease renewals by another five years each. This brings the occupancy rate at the property up by more than five percentage points to over 97 percent. As a result of the successful letting, Kurfürstengalerie is virtually fully occupied.
Kurfürstengalerie in the city center of Kassel was raised in 1989 and is part of the “Core plus” portfolio of DEMIRE. As at the company’s balance sheet date of 31 March 2017, the property generated annualised rent revenues of EUR 3.6 million on leases with an average remaining term of around nine years. The mixed-use complex of buildings is home to a three-storey shopping mall, a four-storey hotel annex, plus a five-storey annex that divides into residential units, doctors’ offices, and office units. Moreover, the property includes an underground car park with altogether 600 parking spots. Anchor tenants include, without being limited to, Aldi, XENOS, a hotel, a casino, and the offices of the public transport and utility company KVV.
Markus Drews, member of the board of DEMIRE, said: “With these premises now let to Eurofit GmbH, we have more or less achieved full occupancy for the Kurfürstengalerie asset. We are delighted that Eurofit GmbH, being a dynamically expanding fitness company, opted in favour of this location.” He went on to say: “This latest letting goes to show that commercial units with sound transportation access in the downtown locations of so-called secondary cities are very much in demand, and that the resulting risk/opportunity profile is particularly attractive for real estate investors with a long-term horizon.”