Bank talks fail for Apollo-owned German property firm Demire

Demire Deutsche Mittelstand Real Estate AG

22/07/2024 13:25

FRANKFURT, July 22 (Reuters) - The Apollo-owned property
company Demire Deutsche Mittelstand Real Estate  DMRE.DE  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)
 ((Tom.Sims@thomsonreuters.com; +49 30 220 133 645;))