The DIC Group is one of the leading investors in the German market for commercial real estate

Press Release

DIC Asset AG expands retail ratio in its real estate portfolio

Frankfurt, 22.11.2006

•    DIC Asset AG invests EUR 37 million in retail parks
•    Further transactions are planned by the end of the year

The Frankfurt-based DIC Asset AG is expanding its investment portfolio with retail trading properties and, in this regard, has reached an agreement with Rheinische Grundbesitz & Beteiligungs AG, Bensheim (the investment company of Dietz AG), to take over five retail parks in the Rhine-Neckar region with a total rental floor space of almost 25,000 sqm in an initial transaction. The total investment volume of this off-market transaction comes to around EUR 37 million for an initial yield (including all closing costs) of 7.25%. Once the new developments are completed in 2007, the fully let retail parks will become the property of DIC Asset AG. In December 2005, DIC had already taken over the Rhine-Main-Neckar portfolio from Rheinische Grundbesitz, consisting of eight properties (investment volume: EUR 58 million).

With this strategic acquisition, DIC Asset AG is specifically expanding the high-yield retail sector in its real estate portfolio. In the medium term, the company plans to increase the ratio from the current 17% to around 30%.

The retail parks are within the Darmstadt-Bergstraße area with sites in, for example, Bensheim and Pfungstadt. They are leased to first-rate companies such as EDEKA, REWE and AWG. The long-term lease period is, on average, in excess of 13 years. The properties are predominantly contained in DIC Asset AG’s core portfolio which combines long-term own holdings with attractive rental yields.

Ulrich Höller, Chairman of the Board of DIC Asset AG: “With this purchase, the strategic objective is directed at expanding the high-yield retail sector. We are currently involved in somewhat exclusive negotiations regarding a total transaction volume of up to EUR 350 million, in which DIC Asset AG will participate as co-investor.“

About DIC Asset AG

Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with a dedicated investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. DIC Asset AG’s real estate portfolio currently includes more than 775,000 sqm of floor space, spread over 217 properties. The portfolio is divided into three segments: the Core portfolio includes the proprietary portfolio held on a long-term basis and offering stable, attractive rental yields; the Value-Added portfolio contains real estate with promising performance potential over the medium term, while the Opportunistic Co-Investments portfolio is comprised of real estate investments that have a more pronounced risk/return profile, which will be placed with third parties following a repositioning under an individual business plan. The real estate portfolio currently being managed totals approx. EUR 1.9 billion. DIC Asset AG has been included in the SDAX® segment of the Frankfurt Stock Exchange since June 2006.

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