DEMIRE Deutsche Mittelstand Real Estate AG: Federal State of Hesse leases property in Bad Vilbel
DEMIRE: Federal State of Hesse leases property in Bad Vilbel
- New letting of roughly 5,000 m² to offices of the Federal State of Hesse
- Term of rental agreement is 10 years
Langen, 6 November 2019 - DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has leased around 5,000 m² located at Konrad-Adenauer-Allee 1-11 in Bad Vilbel to the Federal State of Hesse. The contracting partner is the Landesbetrieb Bau und Immobilien Hessen (LBIH), which is the central service provider of the Hesse State Administration for Construction and Real Estate. The tenants of the property in Bad Vilbel, represented by LBIH, are the State Education Office for the Hochtaunus and Wetterau district, and Studienseminare Friedberg and Oberursel, which offer educational training.
DEMIRE AG purchased the office building in Bad Vilbel in May 2019 as part of a portfolio acquisition. The former single tenant property has lettable floor space totaling 26,000 m². As a result of the new 10-year contract with LBIH, the average remaining term for all leases for the property has now increased from 4.6 years to 7.1 years.
The re-positioning of the property was carried out under DEMIRE AG's "REALize Potential" strategy. In addition to the new lease concluded with LBIH, four further leases for lettable floor space totaling 6,000 m² have been concluded or extended since the property's acquisition. As a result, the property's vacancy rate has halved from 69 % at the time it was taken over to a current level of 35 %.
In his comments, Ingo Hartlief, CEO of DEMIRE AG, says: "The new long-term lease confirms our strategy of converting this property from a single to a multi-tenant structure. As this premiere property, located at the centre of Bad Vilbel, has an excellent IT infrastructure and sufficient parking spaces, we are confident that we will soon be able to conclude additional lease contracts and realize the added-value potential that this property offers."
Press & Investor Relations:
DEMIRE - Deutsche Mittelstand Real Estate AG Michael Tegeder Phone: +49 6103 - 372 49 44 Email: email@example.com
About DEMIRE Deutsche Mittelstand Real Estate AGDEMIRE - 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 more than EUR 1.4 billion. 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.Contact: Michael Tegeder Head of Investor Relations & Corporate Communications DEMIRE Deutsche Mittelstand Real Estate AG Telefon: +49 6103 372 4944 Email: firstname.lastname@example.org
06.11.2019 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.deLanguage: 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@example.com Internet: www.demire.ag ISIN: DE000A0XFSF0 WKN: A0XFSF Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange EQS News ID: 905999 End of News DGAP News Service