Apollo and Wecken & Cie, the principal shareholders in Germany's Deutsche Mittelstand Real Estate (Demire), have confirmed they are considering the sale of the copmany.
The joint shareholders hold a 91% stake in the business, which holds a mix of asset classes across 67 properties in mid-sized cities across Germany. Its portfolio value is around €1.6 bn, according to Demire's nine month results, released last week.
Demire executed three strategic sales in the third quarter of the year, as well as completing the purchase of the Cielo office complex in Frankfurt, its largest ever transaction.
In a statement, Apollo and Wecken & Cie said that they had 'initiated a review of strategic options in relation to their controlling stake in the company'.
The statement added: 'Amongst the options under review, Apollo and Wecken & Cie are considering a sale of their entire stake to a strategic or financial investor... Apollo and Wecken & Cie are currently not contemplating a placing of any of their Demire shares in the public equity market.'
Commented Ingo Hartlief, Demire CEO: 'We are grateful to Apollo and Wecken & Cie for their focused and constructive support in the institutionalisation and growth of Demire over the past years.
'Today, the portfolio structure is well balanced and delivers sustainably strong results, and we have also proven the resilience of our business model during Corona's constraints. We are happy to support our major shareholders in reviewing the strategic options for their stake in Demire.'
