German listed commercial property landlord Deutsche Mittelstand Real Estate (Demire) said on Thursday that it has taken advantage of strong demand from various investors to sell a total of 13 properties in seven transactions since July.
Specifically, a commercial real estate portfolio with eight properties has been sold to the Ramfort Group as part of an asset deal, while the other buildings have been sold in individual transactions.
At €85.2 mln, the sales proceeds are above the most recently market values, underlining the resilience of assets at secondary locations.
Most of the properties are smaller, management-intensive units and are sold as part of a strategic portfolio optimisation. Other properties only offer limited potential for value creation, after successful repositioning them. The properties sold had a vacancy rate of about 26% and a Weighted Average Lease Term (WALT) of 3.6 years as of 30 June 2020.
Demire said that it will use these proceeds to expand its portfolio with strategic acquisitions and to realise further potential within the existing portfolio.
