DGAP-News: Diok RealEstate AG / Key word(s): Real Estate
DIOK RealEstate AG Achieves Full Occupancy for its "one one" Office Building in Magdeburg
- Incumbent tenants renew leases for another five or ten years
- Two incoming tenants from the field of medical research and software development
- New lease agreements running for twelve and ten years respectively
Cologne, 17 November 2020 - DIOK RealEstate AG (DIOK), a company specialised in office properties in tier two cities in Germany, just achieved full occupancy for its "one one" office property in Magdeburg. Located at Fuchsberg 11 and acquired by DIOK in October 2019, the multi-tenant property initially had a vacancy rate of 22 percent, while the weighted average remaining term (WALT) of the unexpired lease agreements equalled 3.1 years.
DIOK succeeded in finding two companies as new tenants for the vacant premises, one coming from the medical research sector, the other a software developer. The new lease agreements were signed for terms of twelve and ten years, respectively. On top of that, lease renewals were negotiated with the incumbent tenants for another five and ten years, respectively. This means that the property is fully occupied, which brings the WALT up to 8.2 years.
Markus Drews, Member of the Board of Diok RealEstate AG: "The 'one one' office property in Magdeburg, which we acquired about a year ago before repositioning it on the market, is another example for the successful implementation of our manage-to-core strategy. The new branding and the favourable location, which includes very convenient access to the public mass transit system and the inter-regional road network, convinced not just the new tenants of the merits of this site but have also prompted the incumbent tenants to secure their units for the medium and long term.
More details: www.diok-realestate.de
About Diok RealEstate AG
Diok RealEstate AG (DIOK) is a property company based in Cologne that specialises in German office real estate. The company's business focuses on setting up an attractive portfolio of office properties in good to excellent micro-environments of secondary cities. Labour-intensive activities have been outsourced in their entirety to third parties while remaining subject to DIOK's supervision and control. As an active portfolio and asset manager, DIOK thus achieves a steady capital growth and a positive cash flow from day one. In the medium term, DIOK intends to use its well-filled acquisition pipeline to build up a real estate portfolio worth EUR 1 billion. By mid-year 2020, the value of the real estate portfolio totalled c. EUR 210.8 million. The 2018/2023 corporate bond with the ISIN DE000A2NBY22 that DIOK RealEstate AG issued in September 2018 is traded on the regulated unofficial market (Open Market) of the Frankfurt Stock Exchange.
17.11.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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