DIC Asset AG: Four Properties worth 75 Million Euros Acquired in Late 2014, Earmarked for the Fund Division

DIC Asset AG / Key word(s): Real Estate

2015-01-12 / 08:31

Frankfurt, 12 January 2015

DIC Asset AG: Four Properties worth 75 Million Euros Acquired in Late 2014, Earmarked for the Fund Division

Fund business maintains its growth trajectory: Acquisition volume of c. 135 million euros in 2014

DIC Asset AG (WKN A1X3XX / ISIN DE000A1X3XX4) successfully completed another four acquisitions in a combined total of 75 million euros just before the end of 2014, the properties being earmarked for two of the company’s investment funds. This brings the acquisition volume in the fund sector up to approximately 135 million euros, and exceeds the expectations of 100 to 120 million euros for 2014 which the company voiced as recently as November 2014. Here are the transaction details:

– For the “DIC Office Balance II,” one office property each was acquired in Hamburg and Berlin for a combined total of approximately 44 million euros.

– The mixed office-commercial building “Elbspeicher” in Hamburg is centrally located close to the fish market. At the moment, around 40% of the lettable area of 10,900 sqm is vacant. Once the already planned refurbishment and restructuring work is completed, the property will offer an attractive rental growth upside that is to be fully raised through active property management. (Grossmann&Berger GmbH estate agency)

– The office asset in Berlin is located in the western downtown area north of the Kurfürstendamm high street. Raised in 1995 and extending over roughly 5,300 sqm, the building is fully occupied by altogether nine tenants at the moment. The superb inner city location and the modern fit-out imply a lucrative rental growth upside for the coming years. CBRE advised the seller as sole agent.

– For the “DIC HighStreet Balance,” two commercial properties were acquired at a total cost of approximately 31 million euros in northern Germany and Offenburg, respectively.

– The commercial building in the northern German city is located in the prime retail pitch, and has a lettable area of around 3,700 sqm, occupied long-term by a renowned apparel company. Ownership will transfer to DIC sometime during the first half of 2015 after its comprehensive modernisation and refurbishment. (estate agency: IAM Immobilien Asset Management GmbH)

– The commercial building in Offenburg is a high-street property with a gross commercial floor area of around 5,000 sqm, let to several tenants. It is located in a prime location in the city’s pedestrian precinct. The transaction was brokered by Comfort München.

About the Fund Business of DIC:

Since 2010, DIC has launched a total of three institutional funds: a retail property fund “DIC HighStreet Balance” and the two office property funds “DIC Office Balance I” and “DIC Office Balance II.” The latest acquisitions brought the company’s open-ended special AIF up to a current volume of c. 650 million euros.

As a matter of principle, DIC Asset always acquires a significant interest in the funds, acting as co-investor while also contributing property and investment expertise as service provider. Institutional investors committed in the funds include mainly pension funds, foundations, insurance companies, and family offices. They expand the investor pool of DIC Asset AG to include business partners with a long-term horizon.

About DIC Asset AG:

Established in 2002, DIC Asset AG, with registered offices in Frankfurt am Main, is a real estate company with a dedicated investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. The company has a total of around 250 real property assets worth approximately EUR 3.4 billion under management. The investment strategy of DIC Asset AG aims at the continuous development of a quality-driven, high-yield, and regionally diversified portfolio. The real estate portfolio is structured in two segments: the Commercial Portfolio (EUR 2.2 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The “Co-Investment” segment (EUR 0.2 billion pro rata) pools fund investments, joint venture investments, and investments in project developments. Own real estate management teams provide a direct service to tenants through six branch offices located at the regional hubs within the portfolio. 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(R) 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.

Press contact:

Thomas Pfaff Kommunikation
Höchlstrasse 2
D-81675 Munich
Tel. +49-89-992496-50
Fax +49-89-992496-52
Mobile +49-172-8312923

Investor relations

Peer Schlinkmann
Neue Mainzer Strasse 20 . MainTor
60311 Frankfurt am Main
Tel. +49-69-9454858-1221
Fax +49-69-274033-9399

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