Demire purchases four German office schemes for €167m

Demire Deutsche Mittelstand Real Estate acquired four office schemes across Germany for €167m. The properties, located in Essen, Cologne, Aschheim and Bad Vilbel, total 89,000 sqm of leasable space. The portfolio currently generates approximately €8.6m in annual rental income. The deal is expected to close in the first quarter of 2019. The largest asset in the portfolio is the 45,000 sqm Office Park Bredeney in Essen, which is currently 88 percent leased. The Cologne property is a two-story, 5,200 sqm office complex built in 2006. Occupancy is at 97 percent. The office property in Aschheim-Dornach’s Humboldtpark commercial area offers 12,200 sqm and is around 89 percent leased. The property in Bad Vilbel, meanwhile, has the greatest optimization potential. The former single-tenant property has five sections, totaling roughly 26,000 sqm of leasable space. With a current vacancy rate of around 69 percent, the property offers strong appreciation potential through its conversion into a multi-tenant property.

“With these real estate purchases, we are implementing the core of our Demire 2.0 strategy, which is to grow to €2bn in the medium term. We are already in advanced talks to secure further attractive targets from our acquisition pipeline," said Ralf Kind, CEO/CFO of Demire.