25.01.2017
DEMIRE Deutsche Mittelstand Real Estate AG DE000A0XFSF0
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE sells non-core portfolio significantly above carrying amount
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Real
Estate/Disposal
DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE sells non-core portfolio
significantly above carrying amount
25.01.2017 / 07:29
The issuer is solely responsible for the content of this announcement.
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DEMIRE sells non-core portfolio significantly above carrying amount
Langen, January 25, 2017 - DEMIRE Deutsche Mittelstand Real Estate AG
(ISIN: DE000A0XFSF0) sold a portfolio of 84 non-strategic properties and
part of a property located in Darmstadt for a total of EUR 21.6 million.
Most of the properties are decentrally located and currently leased to
Deutsche Post DHL Group. The properties were each sold at values below EUR
500,000. The property in Darmstadt is currently leased to Deutsche Telekom.
The total sale price for the properties exceeded the properties' fair value
by more than EUR 3 million 'and roughly 16 % above the current market value
- a further sign of DEMIRE's conservative accounting. The property sales
will be recognised in the 2016 financial year. The transaction resulted in
a significant decline in the number of properties held by the DEMIRE Group,
bringing the total from 178 to 94. The sale also underlines the Executive
Board's focus on selected locations and real estate projects.
"This transaction demonstrates that we are committed to our strategy of
divesting non-core properties as part of our active portfolio management",
says Prof. Andreas Steyer, Speaker of the Executive Board. The targeted
optimisation of our holdings is progressing ahead of schedule. Proceeds
from these transactions will be reinvested in acquisitions that are in tune
with our strategy. Each investment is expected to amount to between EUR 10
and 50 million".
This transaction also further reduces the complexity of DEMIRE's portfolio,
which in turn lowers the property management and administrative costs. The
sale will also result in a continued improvement in our EPRA vacancy rate
(declined from 12.8 % to 10.4 % as of December 31, 2015; pro forma 2016:
10.4 %).
The Management Board
Contact information
DEMIRE Deutsche Mittelstand Real Estate AG
Robert-Bosch-Straße 11
D-63225 Langen
Phone: +49 (0) 6103 - 372 49 - 0
Fax: +49 (0) 6103 - 372 49 - 11
[email protected]
www.demire.ag
_______________________________________
About DEMIRE - First in secondary locations
DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate
holdings in mid-sized cities and up and coming areas bordering German
metropolitan areas. As at September 30, 2016, DEMIRE held real estate with
a market value of EUR 985 million. As at the reporting date, annual
contractual rents had been firmly agreed upon in the amount of EUR 75.5
million for an average term of 5.2 years.
DEMIRE aims to maintain its corporate organisation as lean as possible,
although it still believes that economies of scale and portfolio
optimisation are best achieved by having its own in-house asset, property
and facility management. This safeguards the Company's business expertise
and, equally important, allows the Company to maintain direct contact with
the customer.
DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are
listed in the Prime Standard segment of the Deutsche Börse in Frankfurt.
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25.01.2017 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: DEMIRE Deutsche Mittelstand Real Estate AG
Robert-Bosch-Straße 11 im 'the eleven'
63225 Langen (Hessen)
Germany
Phone: +49 6103 37249-0
Fax: +49 6103 37249-11
E-mail: [email protected]
Internet: www.demire.ag
ISIN: DE000A0XFSF0
WKN: A0XFSF
Listed: Regulated Market in Berlin, Frankfurt (Prime Standard);
Regulated Unofficial Market in Dusseldorf, Stuttgart,
Tradegate Exchange
End of News DGAP News Service
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538887 25.01.2017
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