Agreement Between DEMIRE and Creditors with 90% Bond Volume Formalised

DEMIRE Deutsche Mittelstand Real Estate AG has formalised an agreement with its bond creditors representing over 90% of the outstanding bond volume. This step is part of a comprehensive transaction to extend the 2019/24 bond, worth EUR 499 million, to the end of 2027.

The deal includes a partial repayment of EUR 49.9 million and a tender offer to repurchase bonds. DEMIRE plans to buy back bonds at 76.25% of nominal value, facilitated by an additional EUR 100 million liquidity from its largest shareholder. The bond adjustment includes an interest rate of 5% from October 2024.

With the refinancing, DEMIRE expects its loan-to-value ratio to drop to around 40%. The agreement also allows for the announcement of the 2023 Annual Report release date soon.