28.02.2017
DEMIRE Deutsche Mittelstand Real Estate AG DE000A0XFSF0
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE prolongs maturity of EUR 148 million promissory note at significantly better interest rate conditions
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s):
Bond/Real Estate
DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE prolongs maturity of EUR
148 million promissory note at significantly better interest rate conditions
28.02.2017 / 09:36
The issuer is solely responsible for the content of this announcement.
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DEMIRE prolongs maturity of EUR 148 million promissory note at
significantly better interest rate conditions
- Group's average interest rate on borrowings falls to 4.1%
- FFO to increase annually by EUR 1.45 million starting in 2017
Langen, February 28, 2017 - DEMIRE Deutsche Mittelstand Real Estate AG
(ISIN: DE000A0XFSF0) has prolonged the maturity of a promissory note in the
amount of EUR 148 million early from its original maturity in 2019 to 2022
at better interest rate conditions. In doing so, the interest rate has been
reduced retroactively as at January 1, 2017, from 5% p.a. to 4% p.a.
without paying a penalty for early repayment. This decline brings the
average interest rate on borrowings at the DEMIRE Group from 4.4% to 4.1%.
As a result of the refinancing, funds from operations (FFO) are set to rise
annually by EUR 1.45 million starting in 2017. In the event of a partial
repayment, DEMIRE also has a one-time option to reduce the interest rate on
the promissory note to 3.5% p.a. Such a reduction would lead to a
potential further decline in financing costs to 4% and a rise in FFO of
roughly EUR 2.2 million p.a.
The promissory note was originally issued in 2014 to refinance the Condor
portfolio. Because the investors in the promissory note waived their option
for a partial repayment agreed at the time of issuance, DEMIRE can now use
the entire recent proceeds from the sale of non-core assets of around EUR
22 million for further growth.
Speaker of the Executive Board, Prof. Andreas Steyer, in his comments said:
"The refinancing of the promissory note at significantly better conditions
without a penalty for early repayment demonstrates DEMIRE's excellent
standing among investors and banks and underscores the high quality of our
portfolio. We are currently working on further ways to optimise our
financing structure and are thereby fulfilling our goal of continually
reducing borrowing costs and LTV in the DEMIRE Group and further increasing
the Company's value."
The Management
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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28.02.2017 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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548121 28.02.2017
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