DEMIRE Faces Insolvency Risk Due to Loan Extension Failure

DEMIRE Deutsche Mittelstand Real Estate AG has not succeeded in extending a €82 million loan with DZ HYP AG, creating a risk of insolvency for four of its property companies. The loan was intended to finance the "Limes-Portfolio" and was due on June 30, 2024.

The company had been in negotiations with DZ HYP AG regarding the loan extension, but these have so far been unsuccessful. Efforts by DEMIRE's main shareholder to support the four affected property companies also failed.

Despite this setback, DEMIRE believes an orderly loan repayment can still be negotiated within the available time before any insolvency application has to be filed. Additionally, the company's unsecured bond of €499 million, maturing on October 15, 2024, is currently under restructuring and remains unaffected by this situation.