Bank talks fail for Apollo-owned German property firm Demire

FILE PHOTO: Construction sites in downtown Frankfurt·Reuters
Reuters
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FRANKFURT (Reuters) - The Apollo-owned property company Demire Deutsche Mittelstand Real Estate said talks with its bank DZ HYP about an 82 million euro ($89.28 million) loan have failed, meaning that four of its subsidiaries will file for insolvency.

Germany's property sector, in its third year of decline, is undergoing its most severe slump in decades.

Demire had already warned last month that the loan had come due and that it was negotiating with the bank to prevent the insolvencies.

"Despite intensive talks ..., no agreement could be reached," the company said.

DZ HYP didn't immediately respond to a request for comment.

Demire has also previously disclosed it is in talks with investors about restructuring 500 million euros in bonds. The company didn't immediately respond to a request for comment on the status of those talks.

($1 = 0.9184 euros)

(Reporting by Tom Sims and Matthias Inverardi, Editing by Friederike Heine)