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par Mainvestor GmbH / MAGNAT Real Estate Opportunities GmbH & Co (isin : DE000A0XFSF0)

Agreement between DEMIRE and creditors with bond volume of 90 % now formalised

EQS-News: DEMIRE Deutsche Mittelstand Real Estate AG / Key word(s): Bond
Agreement between DEMIRE and creditors with bond volume of 90 % now formalised

15.08.2024 / 14:30 CET/CEST
The issuer is solely responsible for the content of this announcement.


Agreement between DEMIRE and creditors with bond volume of 90 % now formalised

  • Formal process to amend the terms and conditions of the bond in accordance with the German Bond Act (Schuldverschreibungsgesetz) has started
  • Significant reduction of the LTV to around 40% possible after completion of the refinancing

Langen, 15 August 2024. DEMIRE Deutsche Mittelstand Real Estate AG (ISIN: DE000A0XFSF0) is about to extend its 2019/24 bond (ISIN: DE000A2YPAK1) with a currently outstanding total nominal amount of EUR 499 million until the end of 2027 as part of a comprehensive transaction. DEMIRE has reached a commercial agreement with the creditors, who together represent more than 90 % of the outstanding nominal amount of the bond. DEMIRE has thus reached an important milestone on the way to securing its refinancing. Corresponding agreements have been concluded and the formal process to extend the bond has been initiated. The amendment to the terms and conditions of the bond will be implemented in accordance with the German Bond Act (Schuldverschreibungsgesetz).

In addition to the extension of the bond, the transaction comprises other elements. These include, in particular, a partial repayment of the bond totalling EUR 49.9 million of the total nominal amount. Furthermore, DEMIRE will offer to repurchase bonds at a maximum price of 76.25% of the nominal amount reduced by the partial redemption as part of a tender offer. Up to EUR 159.6 million is available for the buyback. The company's largest shareholder has agreed to provide additional liquidity of up to EUR 100 million for this purpose. The bond buyback has already been largely secured by a backstop agreement and a commitment by the largest bondholders to pay the maximum price. Participation in the backstop is open to all bondholders. Participation in the backstop is remunerated by DEMIRE with a fee of 5 % of the allocated backstop. If the amount available for purchases is fully utilised at an assumed price of 76.25%, the remaining outstanding amount of the bond is expected to be around EUR 240 million.

The terms of the bond will be adjusted in line with market conditions. The interest rate will be 5 % from October 2024. Additional fees are planned if DEMIRE does not gradually redeem the bond within agreed deadlines. In order to repay the bond as soon as possible, DEMIRE plans to sell individual assets as part of a structured placement programme, among other things. Once the refinancing has been realised and the above assumptions regarding the bond buybacks have been met, DEMIRE's leverage ratio is expected to fall to a loan-to-value ratio of around 40 %.

The agreement with the bondholders will also enable DEMIRE to announce a date for the publication of the 2023 Annual Report in the coming weeks.

End of Press Release

 

About DEMIRE Deutsche Mittelstand Real Estate AG

Deutsche Mittelstand Real Estate AG acquires and holds commercial real estate in mid-sized cities and up-and-coming locations bordering metropolitan areas across Germany. The Company's particular strength lies in realising the potential of the properties at these locations while focusing on a range of properties that appeals to both regional and international tenants. As of 30 September 2023, DEMIRE's portfolio comprises 60 assets with a lettable space of approx. 860 thousand sqm. Including the proportionately acquired Cielo property in Frankfurt/Main, the market value amounts to approximately EUR 1.4 billion as of 30 September 2023.

The portfolio's focus is on office properties with a blend of retail and hotel properties resulting in a return / risk structure that is appropriate for the commercial real estate segment. The Company places importance on long-term contracts with solvent tenants and the realisation of the properties' potential. DEMIRE anticipates continued stable and sustainable rental income along with solid value appreciation.

DEMIRE aims to expand its portfolio significantly in the medium term. The company focuses on assets contributing strongly to the FFO and properties with the potential for additional value creation. Properties that are not in line with this strategy will be sold. DEMIRE is being further developed operationally and procedurally with numerous measures. The company plans to enhance its operating performance through cost discipline as well as an active asset and portfolio management approach.

DEMIRE Deutsche Mittelstand Real Estate AG AG (ISIN: DE000A0XFSF0) shares are listed in the Regulated Market (Prime Standard segment) of the Frankfurt Stock Exchange.


Contact:
Julius Stinauer MRICS
Head of Investor Relations & Corporate Finance
DEMIRE Deutsche Mittelstand Real Estate AG
Telefon: +49 6103 372 4944
Email: stinauer@demire.ag


15.08.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language:English
Company:DEMIRE Deutsche Mittelstand Real Estate AG
Robert-Bosch-Straße 11
63225 Langen (Hessen)
Germany
Phone:+49 6103 37249-0
Fax:+49 6103 37249-11
E-mail:ir@demire.ag
Internet:www.demire.ag
ISIN:DE000A0XFSF0
WKN:A0XFSF
Listed:Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Stuttgart, Tradegate Exchange
EQS News ID:1968345

 
End of NewsEQS News Service

1968345  15.08.2024 CET/CEST

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