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

Press Release

DIC Asset: Property acquisitions of EUR 78 million to boost FFO growth

Frankfurt, 21.09.2011

DIC Asset AG (WKN 509840/ ISIN DE0005098404) has now acquired three fully let commercial properties with an investment volume of some EUR 78 million in Duisburg, Karlsruhe and Leipzig. The acquisition is the result of two exclusive transaction implementations with international investors. As previously announced, DIC Asset AG is consequently expanding its portfolio with three attractive, modern properties, which are let to well-known, highly creditworthy companies. As a result, some of the funds raised by the capital increase and the corporate bond have been invested following this further step on the course for growth.

In the first transaction, DIC Asset acquired the retail property “Marktforum” in Duisburg’s district Rheinhausen for around EUR 16 million; the object contains rental space of some 10,000 sqm. EDEKA as the general tenant with a term of 12 years comes along with further renowned tenants like dm, Deichmann and Takko. The purchase was effected at an attractive initial rental yield to the purchase price of around 8 per cent and is expected to be reflected in the income statement in the fourth quarter of 2011 with the transfer of ownership. The FFO contribution in 2012 will amount to more than EUR 0.7 million. The company, together with a regional financial institution who helped finance the deal, was able to exploit the currently very favourable financing window and secure a long-term interest rate of less than 4 per cent on a loan-to-value (LtV) of around 65 per cent.

The second transaction involves two core office properties offering rental space of 40,000 sqm for some EUR 62 million in Karlsruhe and Leipzig. With an average term of around eight years the properties are let on a long-term basis to several major international insurance and service companies which have a high degree of creditworthiness. The two office properties were acquired for additional growth of the first real estate special fund "DIC Office Balance I", in which DIC Asset AG holds a 20 per cent stake. The planned distribution yield from the two properties is in the target range of the special fund of around six percent. In accordance with the German Investment Act, borrowing for the two special fund properties amounts to less than 50 per cent of the purchase price and was provided by a German Landesbank.

The transactions were brokered by Jones Lang LaSalle (Duisburg property), WhiteWater (Karlsruhe property) and BNP Paribas Real Estate (Leipzig property).

Ulrich Höller, CEO of DIC Asset AG: “With the two core properties in Karlsruhe and Leipzig, DIC Asset AG is continuing the strategic expansion of its fund business. The Marktforum in Duisburg with its long-term tenancy agreements and a diverse user structure plus the highly attractive rental yield is a good addition to our portfolio”.


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. Real estate assets under management currently amount to approx. EUR 3.2 billion, comprising around 280 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 portfolio comprises minority stakes in supplementary real estate sectors, including opportunistic investments, project development as well as the Funds business area, where it is invested in core properties. DIC Asset AG has been included in the SDAX® segment of the Frankfurt Stock Exchange since June 2006. The Company's shares are also included in the EPRA index, which tracks the performance of the most important European real estate companies.

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