DEMIRE sells Telekom property in Ulm

Langen, 20 April 2023. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has disposed of a property in Ulm to a German family office. The parties have agreed not to disclose the sales price. The handover of the asset is expected to take place soon. The property has a lettable area of approx. 48,000 sqm and is located in a prominent central location in proximity to Ulm’s main railway station. The property has a long-standing, well-known main tenant in Deutsche Telekom.

The disposal serves to further optimize the portfolio and diversify the rental income structure. While Deutsche Telekom’s share of rental income was still over 30% five years ago, it had already fallen to 14% by the end of 2022 and will be less than 10% after the sale.

About DEMIRE Deutsche Mittelstand Real Estate AG

DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial real estate in mid-sized cities and up-and-coming locations bordering metropolitan areas across German. The Company's particular strength lies in realising the potential of the properties at these locations while focusing on a range of properties that appeals to both regional and international tenants. As of 31 December 2022, DEMIRE's portfolio contains 62 assets with lettable space totaling about 0.9 million sqm. Including the proportionately acquired Cielo property in Frankfurt/Main, the market value amounts to approximately EUR 1.6 billion.

The portfolio's focus on office properties with a blend of retail, hotel and logistics properties results in a return / risk structure that is appropriate for the commercial real estate segment. The Company places importance on long-term contracts with solvent tenants and the realisation of the properties' potential. DEMIRE anticipates continued stable and sustainable rental income along with solid value appreciation.

DEMIRE aims to expand its portfolio significantly in the medium term. The company is focusing on assets contributing strongly to the FFO and on properties with the potential for additional value creation. Properties that are not in line with this strategy will be sold.  DEMIRE is being further developed operationally and procedurally with numerous measures. The company plans to enhance its operating performance through cost discipline as well as an active asset and portfolio management approach.

DEMIRE Deutsche Mittelstand Real Estate AG AG (ISIN: DE000A0XFSF0) shares are listed in the Regulated Market (Prime Standard segment) of the Frankfurt Stock Exchange.”
 

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