13.06.2018
DEMIRE Deutsche Mittelstand Real Estate AG DE000A0XFSF0
DGAP-News: DEMIRE: Major shareholders convert 2013/2018 convertible bond into shares
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Bond
DEMIRE: Major shareholders convert 2013/2018 convertible bond into shares
13.06.2018 / 07:15
The issuer is solely responsible for the content of this announcement.
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DEMIRE: Major shareholders convert 2013/2018 convertible bond into shares
* Apollo-managed funds and Wecken Group convert convertible bonds with a
total volume of EUR 10.27 million into DEMIRE shares
* Company's net loan-to-value ratio (net-LTV) declines from 58.1% to
around 55% on a pro forma basis after 10% capital increase (registered
in April 2018), conversion of the mandatory convertible bond in May 2018
and the current conversion of the convertible bonds
Langen, 13 June 2018 - Funds managed by affiliates of Apollo Global
Management, LLC (NYSE: APO) and the Wecken Group, the two major shareholders
of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0), convert
convertible bonds with a total volume of EUR 10.27 million prior to their
maturity at the end of December 2018 into DEMIRE shares. As a result, the
share capital of DEMIRE will increase in June from the current level of
around EUR 62.8 million to around EUR 73.1 million. Taking into account the
current conversion of the convertible bonds, the conversion of the mandatory
convertible bond into shares in May 2018 and the 10% capital increase
registered in April 2018 after the last balance sheet date, the net
loan-to-value ratio (net-LTV) decreases from 58.1% as of 31 March 2018 to
around 55% on a pro forma basis.
Ralf Kind, CEO/CFO of DEMIRE, comments: "With our two major shareholders
exchanging their convertible bonds for shares, we are further simplifying
our financing structure and coming significantly closer to our goal of
reducing the net loan-to-value ratio to around 50%."
The 2013/2018 convertible bond (ISIN: DE000A1YDDY4) has an issue volume of
EUR 11.3 million and matures on 30 December 2018. The interest coupon for
the convertible bond is 6%. The conversion of the mandatory convertible
bonds amounting to EUR 15.0 million into three million new shares already
took place upon their maturity on 22 May 2018.
DEMIRE 2.0 - Strategy for the Company's Next Growth Phase:
The "DEMIRE 2.0" strategy signifies the Company's next growth phase. The
implementation of an integrated action plan - which, among other things,
seeks to reduce the financing costs, optimise costs and to streamline the
Group structure - is a cornerstone of the plan to expand the current
portfolio to a volume of EUR 2 billion.
The business model's focus remains on the acquisition of commercial property
in German secondary locations. The cost base will continue to be optimised
under this programme through permanent improvements in efficiency and
economies of scale in real estate management resulting from the Company's
growth. Further optimisation of the financing mix and, specifically,
continuous examination of potential refinancing options in the debt and
equity markets is expected to bring down the average interest costs and to
lower the loan-to-value ratio down to around 50% in the medium term.
In addition to increasing its market capitalisation, DEMIRE also aims to
position its risk profile in the "investment grade" category to secure
sustainable long-term financing on favourable terms with a view to future
growth. DEMIRE's anchor shareholders back the DEMIRE 2.0 strategy and intend
moreover to support the growth of DEMIRE.
Press Contact
RUECKERCONSULT GmbH
Wallstraße 16
D-10179 Berlin
Phone: +49 30 28 44 987 65
[email protected]
Contact Details
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 Deutsche Mittelstand Real Estate AG
DEMIRE - First in Secondary Locations
DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate
holdings in mid-sized cities and up-and-coming locations bordering German
metropolitan areas. The company's specific forte is its focus on these
second-tier cities - its claim being "First in Secondary Locations" - and on
a range of assets that appeals to both internationally active and regionally
rooted tenants. Having expanded rapidly between 2013 and 2016 both by buying
single properties and by acquiring equity interests, DEMIRE held a portfolio
with a combined lettable area of around 1 million sqm and a fair market
value of more than EUR 1 billion by the end of the 2017 financial year.
The portfolio focus on office, retail and logistics assets results in
exactly the kind of risk/reward structure that DEMIRE considers appropriate
for the business line of commercial real estate. The Company puts a premium
on long-term contracts with solvent tenants in anticipation of stable and
sustainable rent revenues. DEMIRE has set itself the goal to keep optimising
its corporate structure. To this end, it pursues an active property
management approach out of the conviction that it is the best way to achieve
economies of scale and portfolio optimisations. DEMIRE Deutsche Mittelstand
Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard
segment of the Frankfurt Stock Exchange.
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13.06.2018 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.
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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 Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Stuttgart,
Tradegate Exchange
End of News DGAP News Service
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694849 13.06.2018
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