DEMIRE Deutsche Mittelstand Real Estate has sold an office complex in Ansbach, Bavaria, for approximately €18m. The former Telekom property in Ansbach was acquired in October 2015. The former single-tenant left the property at the end of 2019. DEMIRE was able to increase the value of the property by around €5m through successful asset management and comprehensive repositioning in 2020 and 2021.
The property at Bayreuther Straße 111 and Rettistraße 56 has a plot size of 29,650m². Built in 1988, the property has a total lettable space of around 12,600m² and 200 car parking slots. After the Telekom moved out, the Ansbach University of Applied Sciences and the district of Mittelfranken have been acquired as long-term anchor tenants with a total of around 6,000m² of rental space. DEMIRE took over the leases of former subtenants, which use a further 5,000m², and optimised them particularly with regard to rental income and lease maturity.
The city of Ansbach with its 40,000 inhabitants is part of the Nuremberg-Erlangen metropolitan region and is well connected to the German motorway network. The property has a direct connection to local public transport and the nearby city centre.
Ingo Hartlief, CEO of DEMIRE, commented: "Through our active asset management and the successful repositioning of the office complex in Ansbach, we were able to achieve a reduction in risk as well as an increase in value of around €5m. With the new tenant structure with two long-term anchor tenants from the public sector, we successfully conclude our REALize-Potential approach in Ansbach through the sale."