DGAP-News

DEMIRE significantly improves key figures of Logistik Park Leipzig

DGAP-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Real
Estate
DEMIRE significantly improves key figures of Logistik Park Leipzig

27.11.2015 / 11:08
The issuer is solely responsible for the content of this announcement.

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- Since acquisition in mid-2015: Net rent, excluding utilities + 14 %

- WALT advances by +44 %

- Continued progress in key figures expected

Frankfurt, 27 November 2015 - The first signs of success following DEMIRE
Deutsche Mittelstand Real Estate AG's ("DEMIRE", ISIN DE000A0XFSF0)
purchase of the Logistik Park Leipzig in mid-July 2015 are now being
reflected in the key figures. Thanks to the integrated platform that was
built in the course of 2015 and contains the in-house asset, property and
facility management activities, net rent excluding utilities managed to
rise by 14 percent from its level of EUR 3.6 million at the time of the
purchase to its current level of EUR 4.1 million. DEMIRE also achieved an
extension in the lease terms, which resulted in a rise in the weighted
average lease term, or WALT, by roughly 44 percent to approximately 2.7
years.

Logistik Park Leipzig is a former logistics complex that belonged to
Quelle. The complex has total rental space of roughly 184,000 m² located on
property of around 330,000 m² about 10 km north of the Leipzig city centre
and contains approximately 164,000 m² of warehouse space, almost 20,000 m²
of office space and about 35,000m² of surrounding area. The property also
has two areas for expansion with roughly 38,000 m² that already have
building rights. Around 60 percent of the total space is currently leased
and generates annualised net rent of around EUR 4.1 million. Based on
encouraging discussions, DEMIRE expects to extract further potential from
this extremely interesting logistics complex as indicated by the number of
applications from potential tenants. The attraction of Logistik Park
Leipzig stems from its excellent location near the trade fair centre and
the BMW plant. The Leipzig region is also experiencing high demand for
logistics space.

"Within only a few short months, we were able to significantly improve the
key figures of this large logistics property. Based on the number of rental
applicants we expect to drop the vacancy rate over the medium term to below
10 % for this ideally situated property. We should also see a corresponding
rise in the relevant operational key figures and thus continue to add
significant value. This positive development not only confirms the
potential of the favourably priced logistics property but also attests to
the hard work of our in-house asset and property management. Overall, we
see a validation of our acquisition strategy that prescribes a favourable
entry into an insufficiently managed real estate with a subsequent rise in
the potential value," explained DEMIRE's member of the Executive Board
Markus Drews.

The Executive Board

Contact

DEMIRE Deutsche Mittelstand Real Estate AG
Lyoner Straße 32
60528 Frankfurt am Main
Phone: [phone]
Telefax: [phone]
Email: [e-mail]
Web: www.demire.ag

Investor Relations
GFEI Aktiengesellschaft
Lars Kuhnke
Phone: [phone]
Email: [e-mail]


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27.11.2015 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.

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Media archive at www.dgap-medientreff.de and www.dgap.de

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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: [e-mail]
Internet: www.demire.ag
ISIN: DE000A0XFSF0
WKN: A0XFSF
Listed: Regulated Market in Frankfurt (General Standard);
Regulated Unofficial Market in Berlin, Stuttgart


End of News DGAP News Service
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418443 27.11.2015