Apollo’s and Wecken & Cie.’s statement on their controlling stake in DEMIRE
November 15 2021 - 8:25AM
Apollo’s and Wecken & Cie.’s statement on their controlling
stake in DEMIRE
On the back of the strong performance of DEMIRE Deutsche
Mittelstand Real Estate AG since Apollo-managed funds’ initial
investment in 2018 and Wecken & Cie.’s initial investment in
2015, Apollo and Wecken & Cie. have initiated a review of
strategic options in relation to their controlling stake in the
company. Since 2018, the company has streamlined and grown its
portfolio through a targeted capital recycling, acquisition and
active asset management strategy, thereby more than tripling FFO
and creating significant NAV growth for all shareholders. Amongst
the options under review, Apollo and Wecken & Cie. are
considering a sale of their entire stake to a strategic or
financial investor, which shall be well equipped to support the
company in its next growth and value creation phase. Apollo and
Wecken & Cie. are currently not contemplating a placing of any
of their DEMIRE shares in the public equity market. Apollo and
Wecken & Cie. confirm their continued support for the
management team who have been successfully leading the re-alignment
of the strategy and value creation over the last few years.
About Apollo
Apollo is a high-growth, global alternative
asset manager. We seek to provide our clients excess return at
every point along the risk-reward spectrum from investment grade to
private equity with a focus on three business strategies: yield,
hybrid and equity. Through our investment activity across our fully
integrated platform, we serve the retirement income and financial
return needs of our clients, and we offer innovative capital
solutions to businesses. Our patient, creative, knowledgeable
approach to investing aligns our clients, businesses we invest in,
our employees and the communities we impact, to expand opportunity
and achieve positive outcomes. As of September 30, 2021, Apollo had
approximately $481 billion of assets under management.
About Wecken & Cie.
After founding and selling a number of
companies, mainly in software and real estate, from 2007 the owner
started venture capital and private equity investments in more than
45 companies, through his single family office Wecken & Cie. in
Basel, mainly in the fields of Software, PropTech, MedTech. Wecken
& Cie.’s further investment focus are investments in real
estate and real estate companies (commercial and residential) in
Germany and Switzerland.
About DEMIRE
DEMIRE Deutsche Mittelstand Real Estate AG
acquires and holds commercial real estate in mid-sized cities and
up-and-coming locations bordering metropolitan areas across German.
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 2021, DEMIRE's portfolio contains of 67 assets
with lettable space totalling about 1 million sqm and has a market
value of more than EUR 1.6 billion.
The portfolio's focus on office properties with
a blend of retail, hotel and logistics properties results 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 and
expects the portfolio to grow significantly in the medium term. As
it expands its portfolio, DEMIRE is concentrating on FFO-strong
assets with potential and, at the same time, disposing of
properties that are not in line with its strategy. DEMIRE is taking
several steps to further the development of its operations and
processes. Next to cost consciousness, the operating performance is
set to improve through an active asset and portfolio management
approach. DEMIRE shares are listed in the Regulated Market (Prime
Standard segment) of the Frankfurt Stock Exchange.
Apollo Contact Information
For Investors:Noah GunnGlobal Head of Investor Relations(212)
822-0540IR@apollo.com
For Media:Joanna RoseGlobal Head of Corporate
Communications(212) 822-0491Communications@apollo.com
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