Mid-sized German city investor Demire (Deutsche Mittelstand Real Estate) has sold a portfolio of 84 non-strategic assets and part of a property located in Darmstadt for a total of €21.6 mln.
The majority of the non-centrally located properties are leased to Deutsche Post DHL Group, while the property in Darmstadt is currently leased to Deutsche Telekom. The selling price of each asset did not exceed €500,000.
'This transaction demonstrates that we are committed to our strategy of divesting non-core properties as part of our active portfolio management,' commented Prof. Andreas Steyer, spokesperson of the executive board. 'The targeted optimisation of our holdings is progressing ahead of schedule. Proceeds from these transactions will be reinvested in acquisitions that are in tune with our strategy. Each investment is expected to amount to between €10 and €50 mln.'
According to Demire, the total sale price for the properties exceeded the properties’ fair value by more than €3 mln, coming in at roughly 16% above the current market value. The transaction resulted in a significant decline in the number of properties held by the group, bringing the total from 178 to 94.
Demire has commercial real estate holdings in mid-sized cities and up and coming areas bordering German metropolitan areas. As at September 30, 2016, Demire held real estate with a market value of €985 mln.
