Apollo’s and Wecken & Cie.’s statement on their controlling stake in DEMIRE
Apollo and Wecken & Cie. are reviewing strategic options regarding their controlling stake in DEMIRE Deutsche Mittelstand Real Estate AG, following strong performance since their investments in 2015 and 2018. The duo is considering a potential sale of their entire stake to a strategic investor. Since 2018, DEMIRE has significantly increased its FFO and NAV through targeted portfolio management, with a market value exceeding EUR 1.6 billion as of September 30, 2021. They remain committed to supporting the existing management team as the company prepares for its next growth phase.
- Significant growth in FFO since 2018, more than tripling.
- NAV growth for shareholders attributed to effective asset management.
- Market value of DEMIRE's portfolio exceeds EUR 1.6 billion.
- None.
LONDON and BASEL, Switzerland, Nov. 15, 2021 (GLOBE NEWSWIRE) -- 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
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 Gunn
Global Head of Investor Relations
(212) 822-0540
IR@apollo.com
For Media:
Joanna Rose
Global Head of Corporate Communications
(212) 822-0491
Communications@apollo.com
FAQ
What strategic options are being considered by Apollo and Wecken & Cie. for DEMIRE (APO)?
What has contributed to DEMIRE’s growth since Apollo’s investment in 2018?
What is the market value of DEMIRE's portfolio as of September 30, 2021?
Are Apollo and Wecken & Cie. planning to sell DEMIRE shares on the public market?
How much has DEMIRE’s FFO increased since 2018?
