DEMIRE's key participation Fair Value REIT, in which DEMIRE Deutsche Mittelstand Real Estate currently holds 77.7 % of the voting rights, announced the sale of an office property by the subsidiary IC Fonds & Co. Büropark Teltow in Teltow, Brandenburg. Fair Value REIT-AG holds 78.16 % of IC Fonds & Co. Büropark Teltow. The level of the interest has gradually increased in recent years through a public offer as well as attractive purchases on the secondary market.
The buyer of the property located south of Berlin is a family office from Berlin. At €11.5m, the sales proceeds of the unencumbered property exceed the market value determined as of 30 June 2017 by around €2.25m or around 24 %. The property in Teltow was the sole property held by the IC 07 subsidiary. This subsidiary will be dissolved once the purchase contract has been settled. In addition to the liquidation of the IC 07 fund, there are also plans to liquidate the Immobilien-Fonds Nr. 6 GmbH & Co. (BBV 06) real estate fund following the transfer of two properties into direct ownership and the recently completed sale of a fully let retail park in Krefeld at market value. This demonstrates that DEMIRE is successively streamlining its Group structure as well as optimising its cost structure, as planned, under its DEMIRE 2.0 programme.
The DEMIRE 2.0 programme represents the Company’s next growth phase. The implementation of a holistic action plan, including a reduction in financing costs, cost optimisation and streamlining the Group’s structure, is a cornerstone in the continued expansion of the current portfolio to a volume of around €2bn.