DIC Asset AG expands retail ratio in its real estate portfolio
DIC Asset AG / Miscellaneous
Announcement transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
----------------------------------------------------------------------
• DIC Asset AG invests EUR 37 million in retail parks
• Further transactions are planned by the end of the year
The Frankfurt-based DIC Asset AG is expanding its investment portfolio with
retail trading properties and, in this regard, has reached an agreement
with Rheinische Grundbesitz & Beteiligungs AG, Bensheim (the investment
company of Dietz AG), to take over five retail parks in the Rhine-Neckar
region with a total rental floor space of almost 25,000 sqm in an initial
transaction. The total investment volume of this off-market transaction
comes to around EUR 37 million for an initial yield (including all closing
costs) of 7.25%. Once the new developments are completed in 2007, the fully
let retail parks will become the property of DIC Asset AG. In December
2005, DIC had already taken over the Rhine-Main-Neckar portfolio from
Rheinische Grundbesitz, consisting of eight properties (investment volume:
EUR 58 million).
With this strategic acquisition, DIC Asset AG is specifically expanding the
high-yield retail sector in its real estate portfolio. In the medium term,
the company plans to increase the ratio from the current 17% to around 30%.
The retail parks are within the Darmstadt-Bergstraße area with sites in,
for example, Bensheim and Pfungstadt. They are leased to first-rate
companies such as EDEKA, REWE and AWG. The long-term lease period is, on
average, in excess of 13 years. The properties are predominantly contained
in DIC Asset AG’s core portfolio which combines long-term own holdings with
attractive rental yields.
Ulrich Höller, Chairman of the Board of DIC Asset AG: 'With this purchase,
the strategic objective is directed at expanding the high-yield retail
sector. We are currently involved in somewhat exclusive negotiations
regarding a total transaction volume of up to EUR 350 million, in which DIC
Asset AG will participate as co-investor.'
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. DIC Asset AG’s real estate portfolio currently includes more than
775,000 sqm of floor space, spread over 217 properties. The portfolio is
divided into three segments: the Core 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 Opportunistic
Co-Investments portfolio is comprised of real estate investments that have
a more pronounced risk/return profile, which will be placed with third
parties following a repositioning under an individual business plan. The
real estate portfolio currently being managed totals approx. EUR 1.9
billion. DIC Asset AG has been included in the SDAX® segment of the
Frankfurt Stock Exchange since June 2006.
DIC Asset AG / Investor Relations
Stephan Gramkow
Grünhof · Eschersheimer Landstraße 223
60320 Frankfurt am Main
Tel. (0 69) 9 45 48 58-39
Fax (0 69) 9 45 48 58-99
ir@dic-asset.de
DGAP 22.11.2006
----------------------------------------------------------------------
Language: English
Issuer: DIC Asset AG
Eschersheimer Landstr. 223
60320 Frankfurt Deutschland
Phone: 069 / 274033-0
Fax: 069 / 274033-69
E-mail: info@dic-asset.de
WWW: www.dic-asset.de
ISIN: DE0005098404
WKN: 509840
Indices: S-DAX
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in
Berlin-Bremen, München, Stuttgart, Düsseldorf
End of News DGAP News-Service
---------------------------------------------------------------------------
