DGAP-News: DIC Asset AG / Key word(s): Real Estate/Acquisition
DIC Asset AG: Commercial Portfolio Grows to over EUR 2 billion through Acquisitions
Frankfurt am Main, 26 June 2020. DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany’s leading listed property companies, completed the notarisation of two purchase agreements that add up to a combined value of c. EUR 116 million (total investment costs) in late June.
The two office properties represent high-end additions to the company’s proprietary portfolio (Commercial Portfolio), which had a market value of c. EUR 1.9 billion (representing 92 properties) as of 31 March 2020. The transfer of possession, benefits and obligations for the new properties is expected to take place midway through the third quarter of 2020. Pro forma, these recent acquisitions increase the total portfolio value beyond the mark of EUR 2 billion. The two properties generate a combined annual gross rental income of c. EUR 4.5 million. Relative to the purchase price before incidental acquisition costs, the gross rental yield for both properties approximates 4.2%.
“We are pleased to report an acquisition volume of c. EUR 116 million by mid-year, which means we are already close to the half-way mark of our growth target of EUR 200-300 million for the proprietary portfolio by the end of the year. Moreover, the two core assets in Eschborn and Hanover with their internationally renowned occupiers from the software and financial sectors, respectively, contribute to the ongoing quality enhancement of our Commercial Portfolio,” commented Sonja Wärntges, CEO of DIC Asset AG.
The new and fully let “SAP-Turm” property of about 8,950 sqm inside the Eschborn-Süd commercial district (near Frankfurt am Main) was built in 2018 and has since attained landmark quality. The building is defined by its modern architectural concept, its high building quality, and its state-of-the-art technical equipment. Its first and so far only tenant is the software company SAP. The latter is using the property as sales and demonstration centre in the “SAP Digital Studio” context, among other things. The total investment costs for the property amounted to c. EUR 69 million. The average remaining lease term is around 8.0 years.
The high-end office property in Hanover is occupied exclusively by an international blue-chip tenant from the financial services sector. The weighted average lease term (WALT) is about 9.5 years. Having eight floors and a floor area of around 9,350 sqm, the property boasts an excellent fit-out standard. The most recent refurbishment was carried out in the years 2000-2002. Total investment costs approximate EUR 47 million.
With more than 20 years of experience on the German real estate market, the company maintains a regional footprint on all major German markets through six branch offices, and has 186 assets with a combined market value of c. EUR 8.4 billion under management (as of 31/03/2020).
Taking an active asset management approach, DIC Asset AG employs its proprietary, integrated real estate management platform to raise capital appreciation potential company-wide and to boost its revenues.
In its Commercial Portfolio division (EUR 1.9 billion in assets under management, as of 31/03/2020), DIC Asset AG acts as proprietor and property asset holder, and thus generates revenues both from the management of the assets and through the value optimisation of its own real estate portfolio.
In its Institutional Business division (EUR 6.5 billion in assets under management, as of 31/03/2020), which operates under the name GEG German Estate Group, DIC Asset AG generates income from structuring and managing investment vehicles with attractive dividend yields for national and international institutional investors.
DIC Asset AG has been SDAX-listed since June 2006.
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