DIC Asset AG: Property acquisitions of EUR 78 million to boost FFO growth
DIC Asset AG / Key word(s): Real Estate
21.09.2011 / 08:26
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DIC Asset AG (WKN 509840/ ISIN DE0005098404) has now acquired three fully
let commercial properties with an investment volume of some EUR 78 million
in Duisburg, Karlsruhe and Leipzig. The acquisition is the result of two
exclusive transaction implementations with international investors. As
previously announced, DIC Asset AG is consequently expanding its portfolio
with three attractive, modern properties, which are let to well-known,
highly creditworthy companies. As a result, some of the funds raised by the
capital increase and the corporate bond have been invested following this
further step on the course for growth.
In the first transaction, DIC Asset acquired the retail property
'Marktforum' in Duisburg's district Rheinhausen for around EUR 16 million;
the object contains rental space of some 10,000 sqm. EDEKA as the general
tenant with a term of 12 years comes along with further renowned tenants
like dm, Deichmann and Takko. The purchase was effected at an attractive
initial rental yield to the purchase price of around 8 per cent and is
expected to be reflected in the income statement in the fourth quarter of
2011 with the transfer of ownership. The FFO contribution in 2012 will
amount to more than EUR 0.7 million. The company, together with a regional
financial institution who helped finance the deal, was able to exploit the
currently very favourable financing window and secure a long-term interest
rate of less than 4 per cent on a loan-to-value (LtV) of around 65 per
cent.
The second transaction involves two core office properties offering rental
space of 40,000 sqm for some EUR 62 million in Karlsruhe and Leipzig. With
an average term of around eight years the properties are let on a long-term
basis to several major international insurance and service companies which
have a high degree of creditworthiness. The two office properties were
acquired for additional growth of the first real estate special fund 'DIC
Office Balance I', in which DIC Asset AG holds a 20 per cent stake. The
planned distribution yield from the two properties is in the target range
of the special fund of around six percent. In accordance with the German
Investment Act, borrowing for the two special fund properties amounts to
less than 50 per cent of the purchase price and was provided by a German
Landesbank.
The transactions were brokered by Jones Lang LaSalle (Duisburg property),
WhiteWater (Karlsruhe property) and BNP Paribas Real Estate (Leipzig
property).
Ulrich Höller, CEO of DIC Asset AG: 'With the two core properties in
Karlsruhe and Leipzig, DIC Asset AG is continuing the strategic expansion
of its fund business. The Marktforum in Duisburg with its long-term tenancy
agreements and a diverse user structure plus the highly attractive rental
yield is a good addition to our portfolio'.
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. Real estate assets under management currently amount to approx. EUR
3.2 billion, comprising around 280 properties. The portfolio is divided
into three segments: the 'Core plus' 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. The 'Co-investments' segment
portfolio comprises minority stakes in supplementary real estate sectors,
including opportunistic investments, project development as well as the
Funds business area, where it is invested in core properties. 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.
Further information about DIC Asset is available on the Internet at
www.dic-asset.de.
End of Corporate News
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Language: English
Company: DIC Asset AG
Eschersheimer Landstr. 223
60320 Frankfurt
Germany
Phone: +49 69 9454858-0
Fax: +49 69 9454858-99
E-mail: info@dic-asset.de
Internet: www.dic-asset.de
ISIN: DE0005098404
WKN: 509840
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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