DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE gains Brother as a long-term tenant in Bad Vilbel
DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG
/ Key word(s): Real Estate/Contract
DEMIRE Deutsche Mittelstand Real Estate AG: DEMIRE gains Brother as a long-term tenant in Bad Vilbel
20.02.2020 / 07:10
The issuer is solely responsible for the content of this announcement.
DEMIRE gains Brother as a long-term tenant in Bad Vilbel
- New lease of 4,500 m² over ten years
- Revitalization of former single-tenant property nearly completed
Langen, 20 February 2019 - DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has gained two Brother Industries' companies from Japan as tenants at its office complex on Konrad-Adenauer-Allee 1-11 in Bad Vilbel. Brother International GmbH has been based in Bad Vilbel since 1974 and is a manufacturer and supplier of fax machines, printers and multifunctional office equipment. Brother Sewing Machines Europe GmbH produces and sells sewing, knitting and combination machines, among others. The two new tenants will occupy around 4,500 m² going forward and have made a 10-year commitment to the property. These lettings reduce the economic vacancy rate of the property to 11 percent. The remaining weighted average lease term (WALT) increased to 7.2 years.
DEMIRE, which specialises in commercial real estate in German mid-sized and large cities outside the Top 7, had acquired the 26,000 m² property only last spring within the scope of a portfolio transaction. At that time, the property had a vacancy rate of around 69 percent and a WALT of 4.6 years. As part of the DEMIRE "REALize Potential" strategy, the property was repositioned and converted from a former single-tenant property into an office complex for various types of use. Since this property's acquisition, DEMIRE has been able to extend or conclude new leases for a total of 15,500 m². Both the FFO contribution and the property's value have increased significantly.
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About DEMIRE Deutsche Mittelstand Real Estate AG
DEMIRE - REALize Potential
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. DEMIRE holds a portfolio with a combined lettable area of around 1.1 million m² and a market value of roughly EUR 1.5 billion (as of 31 December 2019).
The portfolio focus on office, retail 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.
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Media Contact
Jürgen Herres
Feldhoff & Cie. GmbH
Phone: +49 69 26 48 677 - 240
Email: jh@feldhoff-cie.de
Investor Relations
Michael Tegeder
Head of Investor Relations & Corporate Finance
DEMIRE Deutsche Mittelstand Real Estate AG
Phone: + 49 6103 3724944
Email: tegeder@demire.ag
20.02.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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