DGAP-News: Deutsche Konsum REIT-AG / Key word(s): Real Estate
Deutsche Konsum REIT-AG announces successful signing of new rental contracts at Domcenter Greifswald in course of the revitalisation of the property
Broderstorf, July 28th 2017 - In course of the revitalisation of Greifswald's Domcenter (formerly known as "Dompassage") Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has signed new rental agreements with numerous high quality new tenants and lease prolongations as well as space expansions with current tenants.
All new lease contracts are agreed upon a period of at least 10 years and are expected to begin on 1st March 2018 - after finalisation of all rebuilding and revitalization measures.
This means a vacancy reduction from around 48% at purchase to below 10% currently. At the same time the annualised rent of the Domcenter increases from 0.9 Mio. EUR to more than 1.3 Mio. EUR. With the aim to reduce the remaining vacancy Deutsche Konsum is already in advanced negotiations with potential new tenants.
Basis of the revitalisation is a new and state-of-the-art space conception, an extensive renewal of fire protection and optical improvements such as a fresh and modern facade. Rebuilding work has already begun and will be intensified in the coming weeks.
Rolf Elgeti, chairman of the board (CEO): "With the conclusion of new rental contracts we have proved our ability to conduct value-adding revitalisations in a profitable manner with creativity, commitment and our network. Moreover, the prolongation of rental contracts shows that our location strategy works and that we have been acknowledged as a strong and competent partner by our tenants. Thanks go to the city of Greifswald as well, which have accompanied this complex process in a focused and professional manner."
As a result of the revitalisation we also assume a corresponding uplift of the property value due to the combination of higher rents, significantly lower vacancy and long-term lease contracts.
Please find more information about Deutsche Konsum REIT-AG on our website www.deutsche-konsum.de .
Deutsche Konsum REIT-AG
Tel. 0331 / 74 00 76 - 517
|Company:||Deutsche Konsum REIT-AG|
|Phone:||+49 (0)331 740076517|
|Fax:||+49 (0)331 740076520|
|Listed:||Regulated Market in Berlin, Frankfurt (Prime Standard); Regulated Unofficial Market in Dusseldorf, Stuttgart, Tradegate Exchange; London|
|End of News||DGAP News Service|