Demire Deutsche Mittelstand Real Estate AG has acquired five department stores for €71m. The properties are located in central inner city locations across Germany. The weighted average lease term (WALT) on the fully leased properties is 14.4 years, which has a positive effect on the WALT of Demire's overall portfolio. The properties will contribute around €3.1m per year to FFO I before taxes and minority interests. Transfer of ownership is planned for the second half of 2019.
Ingo Hartlief, CEO of Demire, says: “The second portfolio acquisition in 2019 increases the property portfolio to a total of approximately €1.4bn, corresponding to external growth of around 21% in the current fiscal year. This acquisition diversifies our recently expanded portfolio of offices while keeping the ratio of retail properties constant. The realization of growth potentials is a core element of the Demire strategy.”
