Deutsche Konsum REIT reduces vacancies of its revitalisation assets significantly

DGAP-News: Deutsche Konsum REIT-AG / Key word(s): Real Estate07.03.2018 / 07:00 The issuer is solely

Deutsche Konsum REIT reduces vacancies of its revitalisation assets significantly

DGAP-News: Deutsche Konsum REIT-AG / Key word(s): Real Estate

07.03.2018 / 07:00
The issuer is solely responsible for the content of this announcement.

Press Release

Deutsche Konsum REIT reduces vacancies of its revitalisation assets significantly

Broderstorf, 7 March 2018 -Deutsche Konsum REIT-AG (ISIN DE000A14KRD3) has reduced vacancies of its revitalisation properties significantly through the signing of new rental agreements.

At the retail city centre "Kolumbuspassage" in Rostock a new space utilisation which pools small shop spaces on the ground floor into a tall modernised space will be established. This new space of 1,094 sqm is about to be leased to a major grocery retailer as a new anchor on a long-term basis. Currently DKR is in lease negotiations with further potential major tenants. That will reduce the vacancy almost entirely. The refurbishments are about to start shortly and are planned to be finalised until the end of 2018. Due to this the annualised rent of the property will increase from currently kEUR 209 to circa kEUR 400.

At the property "Hotel Stadt Güstrow" in the town of Güstrow DKR has concluded a new 10-years lease of about 1,300 sqm with an operator who will run a hostel with 39 rooms and 60 beds after the finalisation of modernisation measures in the vacant part of the property. Additionally, there is an option to expand the hostels' space by another 1,500 sqm. Due to this the vacancy rate of the property will decrease from 83 % to circa 61 % in the first step. The rent is associated to the logis income of the tenant.

Also, the refurbishment measures at "Domcenter" in the city of Greifswald are conducted as planned. After the finalisation the anchor tenants fashion store Jesske, shoe retailer Hoeppner, grocery store Nah & Frisch and a new and state of the art self-service restaurant will open its doors to their customers. Moreover, the discounter TEDI (Tengelmann) will establish a big store on the first floor of the property. The vacancy rate will thus drop from 46 % recently to circa 15 %. Currently DKR is also in negotiations with further potential tenants. Annualised rents will increase from kEUR 860 to at least kEUR 1.350 once the measures are finalised.

Also at the retail park "BiTZ" in the city of Bitterfeld there are currently pooling measures of smaller shop spaces at the ground floor of the original building which allows the anchors KIK and TEDI (Tengelmann) to expand their existing rental spaces significantly. Other existing tenants have moved to the first floor of the property which leads to a higher space usage. Besides, DKR is in negotiations with further potential tenants to let further spaces. Overall the vacancy rate of currently 29 % will drop prospectively to circa 15 % once the measures have been finalised. Annualised rent will increase from kEUR 995 to circa kEUR 1,150.

At a further revitalisation property "Kirschbergcenter" in the town of Hohenmoelsen a new store concept and refreshment of the 1990ies style building is currently being implemented. The existing grocery tenant REWE will be complemented by a new drug store which is about to sign a new 11-years lease contract for currently vacant 900 sqm. Moreover, the existing tenant TEDI will expand their space and install a new store concept. Based on the higher attractiveness of the centre a further vacancy reduction is projected.

Regarding further revitalisation properties in Stralsund, Ueckermuende and Wernigerode DKR is in the process of concepting and discussing with potential tenants to find pragmatic approaches for successful repositioning measures. Here, the purpose is to achieve a higher usage and attractiveness of the properties, too.

DKR expects significant valuation gains of all these properties once all repositionings have been finalised.

Rolf Elgeti, CEO: "The latest rental agreements prove that our revitalisation strategy works and that Deutsche Konsum's asset management team is able to find individual approaches for each asset to realise value-add potential. Due to the vacancy reductions we can further increase the already double digit initial yields of the properties. Moreover, it shows that our micro location strategy works and that DKR is recognised as a reliable partner by its tenants."

About Deutsche Konsum
Deutsche Konsum REIT-AG based in Broderstorf is a listed real estate company focusing on retail properties in Germany for goods required for daily use in established micro-locations. The focus of the company's activities is on the management and development of real estate with the aim of achieving a steady increase in value and the realisation of hidden reserves. The steadily increasing current property portfolio of Deutsche Konsum comprises of 82 retail properties with an annualised rent of EUR 29.1 million.

Due to its REIT status ('Real Estate Investment Trust'), the company is exempt from corporation and trade tax. The shares of the company are listed on the Prime Standard of the Deutsche Börse (ISIN: DE 000A14KRD3).

Deutsche Konsum REIT-AG
Stefanie Frey
Investor Relations
Phone: +49 (0) 331 74 00 76 - 533

07.03.2018 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at

Language: English
Company: Deutsche Konsum REIT-AG
August-Bebel-Str. 68
14482 Potsdam
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

show this