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

Press Release

DIC Asset Supports TLG Immobilien AG Takeover Offer to WCM Shareholders

Frankfurt, 11.05.2017

• Attractive appreciation from WCM shareholdings
  
• Participation in the continued development of TLG

Frankfurt am Main, 11 May 2017. DIC Asset AG (WKN A1X3XX / ISIN DE000A1X3XX4) supports the public takeover offer submitted by TLG Immobilien AG (“TLG”) for the shares of WCM Beteiligungs- und Grundbesitz-AG (“WCM”). On the basis of a tender agreement with TLG, the Management Board of DIC resolved, with the consent of the Supervisory Board, to hand in the WCM shares held by DIC along the lines of the previously announced takeover offer to WCM shareholders.

“Together with WCM, we acquired a stake in an attractive real estate portfolio, and clearly profited from the growth trajectory of WCM on the real estate and capital markets. The takeover offer now announced results in a financially attractive scenario for the shareholders of DIC. Through the transaction, we will acquire a substantial share in an interesting German public limited company for commercial real estate,” said Aydin Karaduman, CEO of DIC Asset AG.

Subject to the final fixing of the minimum prices and the final stipulations in the offer document, the offer proposes to swap 5.75 shares in WCM as quid-pro-quo for one no-par-value bearer share in TLG Immobilien, each having a notional value of EUR 1.00 in the share capital of TLG Immobilien. Based on the closing price of the TLG Immobilien stock one day before the offer was announced, the offer price is EUR 3.36 per WCM share and thus equals a premium of 17.8 percent on WCM’s pro-forma EPRA NAV in an amount of EUR 2.85 for each WCM share.

DIC holds 25.95 percent of WCM’s share capital, which translates into a share total of 34,239,982 shares that were acquired by the company at the average price of EUR 2.79 in several transactions.

“Our efforts to build up a significant equity interest in WCM early on created the key prerequisite that made this industry-consistent consolidation of two mutually complementary property portfolios possible,” Karaduman added.

“Regardless of this transaction, we will strictly continue to expand our hybrid business model, which consists of our in-house portfolio management and our fund business. With the drastic reduction of our LTV ratio, our almost concluded portfolio optimisation, and the launch of another office property fund, we are right on schedule, and have prepared the ground for organic growth,” Karaduman went on to say as he elaborated the strategic outlook of DIC.

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 200 real estate assets under management with an aggregate market value of EUR 3.6 billion. The real estate portfolio is structured in two segments: the “Commercial Portfolio” (EUR 2.0 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The “Co-Investments” segment (EUR 1.6 billion) comprises fund investments (pro-rata share of EUR 1.3 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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