DGAP-News: DEMIRE real estate group reaches growth target earlier than expected


DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s):
Real Estate
DEMIRE real estate group reaches growth target earlier than expected

31.07.2015 / 01:12

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DEMIRE real estate group reaches growth target earlier than expected 
- Commercial rental space doubles to 810,000 m²
- Annual net rent rises to roughly EUR 52.2 million
- Focus is on the office, logistics and retail asset classes

Frankfurt/Main, 31 July 2015 - DEMIRE Deutsche Mittelstand Real Estate AG
("DEMIRE", ISIN DE000A0XFSF0) reached its 2015 fiscal year target of a
doubling in the total rentable space of its commercial real estate
portfolio to 810,000 m² (year-end 2014: roughly 350,000 m2) earlier than
expected. The annual net rent also doubled from EUR 25.4 million to now
roughly EUR 52.2 million.

While in 2014, DEMIRE's portfolio was mainly focused on the office asset
class, there was a targeted expansion in the portfolio in the year 2015 to
include the logistics and retail asset classes - a move that further
improved the risk profile of the entire portfolio through diversification.
Rentable space currently consists of approximately 80 % office space, 9 %
retail space and 8 % logistics space as well as 3 % others.

The acquisition of Logistikpark Leipzig marked the company's entry into the
logistics asset class. This previous logistics complex belonging to the
Quelle mail order company contains total rentable space of around 184,000
m². Contractual rents currently add up to EUR 4.0 million p.a. Thanks to
the property's excellent location near the trade fair centre and the BMW
plant and as a result of the high demand for logistics properties in
Leipzig the Logistikpark offers further potential.

The purchase of the retail property Gutenberg-Galerie in Leipzig and the
Kurfürsten Galerie in Kassel strengthen the retail asset class within
DEMIRE's portfolio. The Gutenberg-Galerie possesses total rentable space of
20,750 m². Contractual rents currently amount to EUR 1.3 million p.a. The
Kurfürsten Galerie has total rentable space of 21,469 m². Contractual rents
total EUR 3.9 million. In addition to acquiring the property company of the
Kurfürsten Galerie, DEMIRE also won a team of retail professionals that is
now helping DEMIRE with the further development of optimisation of
properties in this asset class.

The office asset class was further expanded with the acquisition of six
properties that have long-term rental agreements with Deutsche Telekom AG.
The latter commercial real estate portfolio consists of rentable space
totalling around 144,000 m² and approximately 2,171 underground parking
garage and above ground parking spaces. The contractual rent of this
sub-portfolio is EUR 14.8 million p.a.

Hon.-Prof. Andreas Steyer, Speaker of the Executive Board (CEO) commented:
"We are very pleased with the key figures from our strongly expanded
portfolio. The valuation of our holdings of 13.2 times the contractual
annual rents is, in our opinion, a conservative approach. With our
acquisitions we have already reached our 2015 target, but want to continue
growing. An increase in authorised capital and conditional capital is on
the agenda for our General Meeting. After the corresponding approval of the
General Meeting we will be able to continue to use DEMIRE's shares as a
"currency", along with other refinancing instruments, as we did
successfully in the year 2015. In the recent past we acquired properties in
the context of three capital increases in kind and a cash capital increase.
Through these capital measures, the share capital increased significantly
overall from EUR 14.31 million to today's total of EUR 27.35 million. At
the same time, DEMIRE's market capitalisation rose from EUR 25.75 million
as of 31 December 2014, to its current level of EUR 137 million".

Dipl.-Kfm. (FH) Markus Drews, member of the Executive Board (COO) added:
"With the rapid expansion in our portfolio and the achievement of a level
of net rents of EUR 52.2 million, we have reached a critical mass that not
only makes future growth easier in terms of possible refinancing conditions
but in other ways as well.  With a weighted average lease term (WALT) of
around six years, DEMIRE is able to plan reliably and long term. With the
Group's in-house asset, property and facility management, we have
successively optimised the cultivation of our current holdings and can
professionally integrate additional holdings. This will enable us to
generate synergies and economies of scale in the cultivation and management
of our holdings, increase the Group's income and realise the higher
potential values of the properties. The further reduction in the vacancy
rate offers tremendous optimisation and value-enhancing potential."

The Executive Board 

About die DEMIRE Deutsche Mittelstand Real Estate AG

Leading holder of commercial real estate

DEMIRE Deutsche Mittelstand Real Estate AG is transforming itself into a
leading holder of German commercial real estate. The core business
activities of the Frankfurt/Main- headquartered real estate group consist
of the acquisition, the management and the rental of commercial real estate
and their further development, for example, through modification,
modernisation or expansion, and increasing their value through their active
portfolio management.

As of the end of July 2015, the commercial property portfolio consisted of
more than 810,000 m2 of rentable space that mainly comprised office,
logistics and retail properties. Annualised net rent excluding utilities
amounts to approximately EUR 52.2 million. The portfolio's regional focus
lies in Bavaria, North Rhine-Westphalia, Baden-Württemberg, Saxony, Hamburg
and Bremen as well as in the Rhein-Main and Rhein-Neckar areas. The
in-house asset, property and facility management ensures the optimum
management and development of the holdings

The DEMIRE real estate group pursues a buy-and-hold-strategy combined with
active portfolio management. It is concentrated on both the value-added and
core-plus investment approaches. The combination of these two approaches
offers a balanced risk-return ratio and attractive opportunities.

The real estate group's lean structure allows it to take action quickly and
flexibly. The shares of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN
DE000A0XFSF0) are listed in the regulated market (General Standard Segment)
of the Frankfurt Stock Exchange.

Contact 

DEMIRE Deutsche Mittelstand Real Estate AG 
Lyoner Straße 32 
60528 Frankfurt/Main 
Phone: +49 (0) 69-719 189 79 0 
Fax: +49 (0) 69-719 189 79 11 
Email: ir@demire.ag
Web: www.demire.ag

Investor Relations 
GFEI Aktiengesellschaft 
Lars Kuhnke 
Phone: +49 (0) 511 47 40  23 10 
Email: ir@demire.ag



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Language:    English                                            
Company:     DEMIRE Deutsche Mittelstand Real Estate AG         
             Lyoner Straße 32                                   
             60528 Frankfurt am Main                            
             Germany                                            
Phone:       +49 (0)69 / 719 189 79 0                           
Fax:         +49 (0)69 / 719 189 79 11                          
E-mail:      info@demire.ag                                     
Internet:    www.demire.ag                                      
ISIN:        DE000A0XFSF0                                       
WKN:         A0XFSF                                             
Listed:      Regulated Market in Frankfurt (General Standard);  
             Regulated Unofficial Market in Berlin, Stuttgart   
 
 
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