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

Press Release

First DIC real estate fund fully placed

Frankfurt, 02.03.2011

Further growth sought

The entry into the fund market of Frankfurt-based real estate investor DIC Asset AG has proved to be a success. The equity capital of the “DIC Office Balance I” real estate special fund set up by the company, a specialist in German commercial real estate, has now been fully paid in at a total of around EUR 120 million. In addition, commitments in excess of this amount have already been attracted for the fund’s further development. Both the fund and DIC’s new business segment are focused on growth. The aim is to increase the volume of the fund, in accordance with the investors. There are even plans to set up more special funds in future. 

DIC started to market the fund in the spring of 2010. A high initial placement, accounting for more than 75 per cent of equity, saw the special fund reach the starting line and become operational in the autumn, with the properties being transferred to the fund's assets. 

The special fund has attracted institutional investors, particularly pension funds, foundations, savings banks, and family offices. As such, DIC Asset AG has seen its circle of investors expand to include business partners with an eye on the long term. The fund’s investors have shares in a selection of five top-quality properties in German metropolitan areas (Berlin, Düsseldorf, Wiesbaden, Mannheim and Munich). Covering a total rental space in excess of 58,000 m², the properties are almost fully let (97.5 per cent), with over 80 per cent being used as offices. Without exception, the chief tenants of the properties are first-rate companies with excellent ratings. This offers considerable security in terms of portfolio income. The average remaining tenancy term is almost six years. The borrowing (LTV) ratio is currently around 49 per cent, with loans arranged on a long-term basis. 

The existence of an initial portfolio means investors can enjoy attractive dividends as soon they make their investment. The target dividend is at least 6 per cent per year. DIC Asset AG has invested in a 20 per cent share. This means both initiator and investors share a long-term interest in the project. DIC will offer the fund the benefit of its tried-and-tested services in investment and real estate management. In addition to investment income, the new business segment will generate regular and stable revenue from the services provided. The partner investment company as KAG provider is Warburg-Henderson subsidiary IntReal (International Real Estate Kapitalanlagegesellschaft mbH).

Ulrich Höller, CEO of DIC Asset AG: “Our achievement in fully placing our first special fund has enabled us to enjoy rapid early success in our new business segment. We are looking to really build on this in the coming years.”

About DIC Asset AG

Established in 2002, DIC Asset AG, with registered office in Frankfurt am Main, is a real estate company with a dedicated investment focus on investing in commercial real estate in Germany, pursuing a return-oriented investment policy. Real estate assets under management amount to approximately EUR 3.2 billion. DIC Asset AG's real estate portfolio includes around two million square metres of floor space, spread over around 300 properties. The portfolio is divided into three segments. The Core plus 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. The Co-Investments segment contains minority holdings in complementary real estate segments. This includes opportunistic investments and the Funds business segment, which invests in top-quality Core real estate. DIC Asset AG has been listed on the SDAX index since June 2006. 

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