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

Press Release

DIC Asset AG acquires retail properties for EUR 108 million

Frankfurt, 14.03.2011

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) has acquired two retail properties in Bremen and Chemnitz with “Galeria Kaufhof” as the tenant from a joint venture controlled by affiliates of AREA Property Partners and Rida Development Corporation following an exclusive transaction. The investment volume as part of a share deal is around EUR 108 million. With this large-scale acquisition, DIC Asset is returning as a buyer on the investment market, as previously announced. Jones Lang LaSalle acted as an intermediary for the transaction.

The two properties, situated in absolutely prime locations in the two city centres, have a combined retail floor space of 49,000 sqm. The properties are fully let. The tenancy agreements have an average term of 11.5 years. The annual rental income of approximately EUR 7.3 million equates to a rental yield in relation to the investment purchase price of nearly 7 per cent.

Both properties are a sensible addition and will make a noticeable improvement to DIC Asset AG’s investment portfolio. The annual rental yields will increase by around 6 per cent, with portfolio volumes increasing by around 5 per cent. In addition, long-term tenancy agreements will significantly increase the average rental term of the portfolio.

Closing, and the transfer of ownership of the two properties to DIC Asset AG, is expected to take place in the beginning of the second quarter of 2011, meaning that the acquisition will impact on income very quickly. This will lead to a direct FFO contribution of more than EUR 3 million this year. Existing equity will be predominantly used for the transaction initially. The bindingly pledged borrowed capital can be obtained gradually up to the end of the year. Financing of this portfolio with a highly-regarded German real-estate mortgage lender is established on a long-term basis for up to ten years.

Ulrich Höller, CEO of DIC Asset AG: “This transaction marks the first of a series of steps for achieving growth. With this purchase, we are strengthening our FFO with two fully leased properties with high quality, a secure long-term cash flow and an above-average rental yield.”

Further information about DIC Asset AG is available at www.dic-asset.de.

About DIC Asset AG:
Established in 2002, DIC Asset AG, with its 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 amount to approximately EUR 3.2 billion with around 290 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; while the Co-Investments portfolio comprises minority investments in other real estate segments. This includes opportunistic investments, project developments as well as the Funds business segment, where we invest in first-class core properties. DIC Asset AG has been listed on the SDAX index since June 2006 and is part of the international EPRA index.

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