DEMIRE sees opportunities through sales next year - no early partial repayment of the bond at the end of the year
- DEMIRE plans to sell properties in the coming year and anticipates a market recovery and higher valuations
- No early partial repayment of the EUR 50 million corporate bond - strategic decision in favour of flexibility
Langen, 28 October 2025.? DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) has decided not to make an early partial repayment of EUR 50 million on the 2019/2027 corporate bond (ISIN: DE000A2YPAK1) at the end of 2025 as originally planned. This decision results in an additional bullet payment of 3 per cent on the currently outstanding nominal amount of the bond of EUR 247.1 million. The bond matures at the end of 2027.
"Against the backdrop of the current challenging market environment for commercial real estate transactions, particularly in secondary markets, we have deliberately opted for a cautious sales strategy," explains CEO Frank Nickel. "From today's perspective, it makes more economic sense to wait until the market recovers before making further disposals and to accept the one-off additional fee of around EUR 7.4 million. This allows us to remain flexible and secures the opportunity to sell properties at a later date. This will allow us to benefit from an improved market environment, generate higher proceeds and increase the value of the company sustainably and in the long term."
He further explains: "In addition to the sales proceeds of around EUR 43 million already achieved in the current year, we received further purchase offers for properties. After careful consideration, we deliberately decided against further transactions in view of the prices currently achievable. The recent increase in commercial property transactions in prime locations signals a gradual revival of the market. We therefore expect to benefit from an improved price environment in the coming year and to be able to achieve higher valuations on further sales."
End of press release
About DEMIRE Deutsche Mittelstand Real Estate AG
DEMIRE Deutsche Mittelstand Real Estate AG acquires and holds commercial properties in medium-sized cities and up-and-coming peripheral locations in metropolitan areas throughout Germany. The company's particular strength lies in realising real estate potential in these locations and focuses on an offering that is attractive to both international and regional tenants. As of 30 June 2025, DEMIRE had a real estate portfolio of 48 properties with a lettable area of around 582 thousand square metres. Taking into account the proportionately acquired Cielo property in Frankfurt/Main, the market value amounts to around EUR 0.9 billion.
The portfolio's focus on office properties with an admixture of retail and hotel properties is appropriate for the risk/return structure of the commercial property segment. The Company attaches great importance to long-term contracts with solvent tenants and the realisation of potential and therefore continues to expect stable and sustainable rental income and solid value growth. DEMIRE's portfolio is to be significantly expanded in the medium term. In expanding the portfolio, DEMIRE will focus on FFO-strong assets with potential, while properties that do not conform to the strategy will continue to be sold in a targeted manner. DEMIRE will continue to develop its operations and processes with numerous measures. In addition to cost discipline, operating performance is being improved through an active asset and portfolio management approach.
The shares of DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) are listed in the Prime Standard of the German Stock Exchange in Frankfurt.
Contact:
Julius Stinauer
Head of Investor Relations & Corporate Finance
T: +49 6103 372 49 44
E: ir@demire.ag
