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

Press Release

DIC Asset AG successfully concluded its second capital increase in 2006

Frankfurt, 13.12.2006

This press release or the information contained therein is not being issued and may not be distributed in the United States of America, Canada, Japan or Australia.

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) announced today that it has successfully concluded its capital increase. The company raised approx. Euro 185 million net proceeds by issuing 8.16 million of new shares, increasing the company’s share capital from Euro 20.34 million to Euro 28.5 million. The subscription ratio was 99.96 per cent. The subscription period for the new shares commenced on 29 November 2006 and ended on 12 December 2006. In addition, approx. 2.1 million new shares not subscribed for by the major shareholders were successfully placed with domestic and international investors, at a price of Euro 27.00 per share.

The shareholder structure of DIC Asset AG has changed upon conclusion of the capital increase and the placement of the shares, with the free float increasing from 39.2 per cent to 46.6 per cent. The holdings of DIC Deutsche Immobilien Chancen Group is now 37.6 per cent (previously: 42.8 per cent); Forum S.à.r.l holds 6.6 per cent (previously: 7.5 per cent), and Morgan Stanley Real Estate Funds approx. 9.2 per cent (previously: 10.5 per cent).

Ulrich Höller, Chairman of the Management Board of DIC Asset AG, said that “Our two successful capital increases have raised approx. Euro 400 million in new funds this year. This is visible proof of the strong confidence our shareholders have in DIC Asset AG’s future. We have therefore built a sound foundation for continued dynamic growth. At the same time, we have sufficient scope for manoeuvre to participate in the opportunities which will arise in the German real estate markets.”

The 8,160,000 new shares were offered to shareholders for subscription at a price of Euro 23.50, and subject to a subscription ratio of two new shares for each five shares held (excluding a fractional amount of 24,000 shares). The new shares carry full dividend rights for the financial year 2006. Deutsche Bank and Morgan Stanley acted as joint bookrunners.

DIC Asset AG will use the net issue proceeds to finance further acquisitions of real estate assets up to one billion Euro. Initial transactions are expected to be concluded shortly.

DIC Asset AG had already increased its equity base by Euro 214 million net proceeds through a capital increase in the spring of 2006 to enable the company to capitalise more fully on market opportunities as they arose. With an aggregate transaction volume of approximately one billion Euro since May 2006, these funds have been invested to a large extent already. The new capital increase will provide the resources required to successfully maintain the growth momentum in DIC Asset AG’s business.

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 around 810,000 sqm of floor space, spread over 269 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. Real estate assets under management currently amount to approx. Euro 2,1 billion. DIC Asset AG has been included in the SDAX segment of the Frankfurt Stock Exchange since June 2006.


This publication constitutes neither an offer to sell nor a solicitation to buy securities of DIC Asset AG. The securities have already been sold.
This press release does not constitute an offer to buy securities in the US. In the US, securities may only be sold or offered for sale after registration in accordance with the provisions of the U.S. Securities Act of 1933 as amended or, without prior registration, if an exemption applies. DIC Asset AG does not intend to register the offer, in whole or in part, in the US or to carry out a public offer in the US.
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