STRABAG Property and Facility Services GmbH (STRABAG PFS) has increased the square metrage of rental space under management in Germany to 5.6 million, following the award of a new contract to provide technical and commercial property management services to DEMIRE Deutsche Mittelstand Real Estate AG.
The latest contract involves 73 occupied commercial properties with a total area of 600,000 sq.m. Services to be provided include supporting tenants, managing and monitoring service providers, overseeing renovation works, accounting and reporting - with help in consolidating reporting systems to be provided by Microsoft PowerBI.
Discussing the decision to award the contract to STRABAG PFS, Ralf Kind, CEO and CFO of DEMIRE, said:
"As part of our DEMIRE 2.0 strategy, we will focus internally even more on active asset management. At our real estate locations for external property and facility management, we require expert service providers that look after our real estate in a professional and committed manner and have efficient processes and systems in place in the context of digitalisation. With the globally operating STRABAG at our side as a new property service provider, we are looking forward to successful cooperation and high-quality management of our property portfolio."
Marko Bohm, managing director for Real Estate Management at STRABAG PFS, commented:
"STRABAG PFS has a nationwide presence.
“We are one of the few service providers in Germany to manage large property portfolios with our own, in-house system, and are also one of few to implement new client accounts within very short timescales".
STRABAG PFS is now responsible for managing 80 per cent of DEMIRE's portfolio which has a market value of approximately EUR 1.1 billion.
About DEMIRE AG
DEMIRE Deutsche Mittelstand Real Estate AG has commercial real estate holdings in mid-sized cities and up-and-coming locations bordering German metropolitan areas. The company’s specific forte is its focus on these second-tier cities—its claim being “First in Secondary Locations”—and on a range of assets that appeals to both internationally active and regionally rooted tenants. Having expanded rapidly between 2013 and 2016 both by buying single properties and by acquiring equity interests, DEMIRE held a portfolio with a combined lettable area of around 1 million sqm and a fair market value of more than EUR 1 billion by the end of the 2017 financial year.
The portfolio focus on office, retail and logistics assets results in exactly the kind of risk/reward structure that DEMIRE considers appropriate for the business line of commercial real estate. The Company puts a premium on long-term contracts with solvent tenants in anticipation of stable and sustainable rent revenues. DEMIRE has set itself the goal to keep optimising its corporate structure. To this end, it pursue an active property management approach out of the conviction that it is the best way to achieve economies of scale and portfolio optimisations.
DEMIRE Deutsche Mittelstand Real Estate AG shares (ISIN: DE000A0XFSF0) are listed in the Prime Standard segment of the Frankfurt Stock Exchange.
Visit www.demire.ag for further information.