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

Press Release

DIC Asset AG exceeds its 2016 acquisition target

Frankfurt, 18.01.2017

• Acquisitions worth over EUR 520 million transacted in 2016
• Acquisition volume expanded as planned, topping the forecast of EUR 500 million
• Another four acquisitions in Berlin, Bonn, Düsseldorf and Munich just before the end of 2016 add up to a total of c. EUR 195 million
  
• Acquired assets earmarked for existing and planned institutional real estate fund in the office and retail segments

Frankfurt/Main, 18 January 2017. DIC Asset AG (WKN A1X3XX / ISIN DE000A1X3XX4) signed another four sale and purchase agreements before year-end 2016, bringing its total acquisition volume up to EUR 520 million. It thereby exceeded its own mid-year forecast of EUR 500 million, up from the previously predicted amount of EUR 400 to 450 million. With the acquisitions transacted on behalf of the fund portfolio, DIC Asset AG continues its dedicated growth trajectory in the investment fund sector.

“With these final acquisitions for 2016, we not only met but topped our acquisitions target despite our own upward revision midway through the year. Despite the challenging market environment, we continued to expand the portfolio of our steadily growing fund business line. In 2017, we intend to keep intensifying this ongoing development in the fund business that we kicked off in 2016”, said Aydin Karaduman, CEO of DIC Asset AG.

The final deals signed in 2016 involved one retail asset in Berlin and three office properties in Bonn, Düsseldorf and Munich, respectively. The property bought in the centre of Berlin's Hohenschönhausen-Lichtenberg district is the “Storchenhof” retail asset. It combines a hybrid centre that consists of retail and commercial floor area and was built in 1995 with a superstore raised in 2011. The lettable area adds up to 13,900 square metres overall and 350 parking spots. Sole tenant of the superstore is food multiple Kaufland, while anchor tenants at the hybrid centre include Aldi (discount food market), Rossmann (drugstore), Kaufland Getränke (drinks cash & carry) and the Dutch non-food discount retailer Action. The upper floors are occupied mainly by doctors' offices. The occupancy rate is close to 100 percent at the moment. Being located next to the local high-street, the shopping centre is conveniently accessed both by public transportation and by car. Legal counsel to DIC was provided by the law firm GSK Stockmann + Kollegen. The deal was brokered by MAC Consult GmbH.

The acquisition in Bonn involved an office property with a gross lettable area of around 16,700 square metres and 269 parking spots. The asset was sold by an international investor. Main tenants of the property, which lies in the city's Federal District, are the Institute for Federal Real Estate (BImA), the German Society for International Cooperation (GIZ), and Deutsche Post Immobilien, the real estate arm of Deutsche Post. Raised in 2005, the property currently shows an occupancy rate of 94 percent. GSK Stockmann + Kollegen again provided legal counsel to DIC. Cushman & Wakefield LLP acted as adviser on the seller side.

The property “Halle 30” in Düsseldorf's Derendorf district was taken over from Gerry Weber International AG. Main tenants of the showroom centre, which is located close to downtown, include Marc Cain, Basler Fashion GmbH, and Rabe Moden GmbH, among others. Companies use the buildings units as ordering centres. The lettable area of the scheme, which was completed in 2011, adds up to roughly 13,800 square metres, and is complemented by 260 parking spots. The current occupancy rate is close to 94 percent. GSK Stockmann + Kollegen acted once more as legal advisers. The selling process was facilitated by BNP Paribas Real Estate in an advisory role.

The fourth asset bought was an office property in the Obersendling district in Munich. Seller was Allianz Real Estate Germany GmbH. Main tenants of this property, which was built in 1994 and provides around 17,300 square metres of lettable area and 205 parking spots, are the companies FWU AG and Bayerische Eisenbahngesellschaft. The current occupancy rate is close to 90 percent. Due to its proximity to the Mittlerer Ring orbital and its easy access to the underground and rapid transit systems, the property comes with optimal transport links. DIC received legal counsel by the law firm LPA Rechtsanwälte Steuerberater, while the seller side was advised by CMS Stuttgart. The estate agency facilitating the transaction was Cushman & Wakefield.

“All four of properties impressed us with sound fundamentals and their excellent micro-environments. In a very competitive market environment, we were able to acquire four very good assets at the end of the year,” says Thomas Gerstmann, Head of Investment at DIC Asset AG. Ralph Andermann, managing director of the fund business says: “The acquisitions are an excellent addition for our existing fund portfolio and a solid basis for our upcoming new office and retail funds.”

In addition to the already launched office funds DIC Office Balance I, II and III and the DIC HighStreet Balance fund, which concentrates on inner-city retail real estate, DIC is planning to set up a fourth office property fund as well as another retail property fund. Supplementing the office property focus, the retail segment thus forms a second investment mainstay that DIC intends to strengthen going forward.

About DIC Asset AG
Established in 2002, DIC Asset AG, with registered offices in Frankfurt am Main, is a real estate company with investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. The Company's investment strategy is geared to the continued development of a high-quality, highly profitable, and regionally diversified portfolio. The company has around 210 real estate assets under management with an aggregate market value of EUR 3.2 billion. The real estate portfolio is structured in two segments: The “Commercial Portfolio” (EUR 1.7 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The “Co-Investments” segment (EUR 1.5 billion) comprises fund investments (pro-rata share of EUR 1.2 billion), joint-venture investments, and interests in development projects. In-house real estate management teams provide a direct service to tenants, working out of six different locations in each of the portfolio focus regions. This kind of market presence and expertise creates the basis for preserving and enhancing our earnings and real estate values. 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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