DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG: Two new notarised acquisitions amounting to EUR 118 million - Portfolio grows to EUR 1.5 billion

DEMIRE: Two new notarised acquisitions amounting to EUR 118 million - Portfolio grows to EUR 1.5 billion
 

- DEMIRE purchases Roomers Hotel in Frankfurt and Imotex in Neuss

- Rise in annualised net rental income of EUR 7 million p.a.

- Transaction volume in 2019 increases to more than EUR 400 million

Langen, 12. December 2019 - DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has expanded its portfolio to about EUR 1.5 billion by purchasing two properties for a total of EUR 118 million (including ancillary acquisition costs).

In Frankfurt, the long-term leased Roomers Hotel with around 5,400 m² was acquired. Completely refurbished in 2009, the hotel has 116 rooms and is one of the most renowned design hotels in Germany. With 55,700 m², Imotex is one of the most established and largest fashion distribution centres in Europe and conveniently located close to Düsseldorf. This property is also fully let and the property management remains with Unimo Group, the seller.

DEMIRE is continuing its growth strategy with these acquisitions, following the prior purchases of an office portfolio for approximately EUR 167 million, a department store portfolio for around EUR 71 million and the sale of non-strategic assets for around EUR 50 million. DEMIRE's transaction volume in the current year totals EUR 406 million.

All acquisitions are of institutional size, offer further potential and improve the key indicators for the entire portfolio. Based on an acquisition volume of around EUR 356 million in 2019, DEMIRE has expanded its portfolio to about EUR 1.5 billion and considers itself well on track to achieving a medium-term portfolio value of around EUR 2 billion.

Ingo Hartlief, CEO of DEMIRE AG, in his comments, says: "The acquisitions in Frankfurt and Neuss underline our strategy to both grow and optimise our portfolio as a whole. In 2020, we expect both properties to make a combined FFO contribution (FFO I before taxes) of well over EUR 4 million. The fully let properties will also have a positive effect on the profitability of the overall portfolio, the development of the occupancy rate and the WALT of DEMIRE."
 

About DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE - REALize Potential

DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in so-called ABBA locations across German. The Company's specific forte is its focus on these locations and on a range of assets that appeals to both internationally active and regionally rooted tenants. DEMIRE holds a portfolio with a combined lettable area of more than 1.1 million m² and a market value of roughly EUR 1.5 billion.

The portfolio focus on office, retail, hotel and logistics assets results in exactly the kind of risk/return 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 rental revenues. DEMIRE has set itself the goal to keep optimising its corporate structure. To this end, it pursues an active property management approach, convinced 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.