DIC Asset: complete takeover of a portfolio worth EUR 190 million
DIC Asset AG / Key word(s): Miscellaneous/Real Estate
18.10.2011 / 07:31
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DIC Asset: complete takeover of a portfolio worth EUR 190 million
* Portfolio growth target for 2011 already achieved
* Transaction significantly supports FFO growth
* Simplification of operative structures
With economic effect as of 1 October 2011, DIC Asset AG (WKN 509840/ ISIN
DE0005098404) took over the 50 per cent stake in three joint ventures
previously held by funds advised by Morgan Stanley Real Estate Investing.
As a result, DIC Asset has become the sole owner of an attractive portfolio
with a market value of some EUR 190 million consisting of around 20 office
properties in Berlin and Frankfurt. The average initial rental yield in
relation to the purchase price is 7.7 per cent.
The acquisition from the company's long-standing project partner has been
effected via a share deal involving low transaction costs. A meaningful
discount on the portfolio's existing net asset value (NAV) was also agreed
on. Furthermore, the transaction allows DIC Asset to simplify its portfolio
and asset management structures in the Core plus and Value added segments.
DIC Asset will assume the long-term financing of the previous joint
ventures with an average loan-to-value (LtV) of some 70 per cent and an
attractive average interest rate of 3.2 per cent, and will continue it on
an unchanged basis.
DIC Asset's rental income will increase by some EUR 7 million year-on-year;
FFO (operating income) will increase by some EUR 3.5 million over the same
period. FFO contribution for the fourth quarter of 2011 thus amounts to
around EUR 0.9 million.
As a result of the current takeover, DIC Asset has already achieved its
planned portfolio growth of EUR 200-300 million for 2011: with the real
estate purchases in March (EUR 108 million) and September (EUR 78 million),
the portfolio increase this year already totals over EUR 280 million.
The portfolio encompasses a lettable area of some 90,000 sqm. The majority
of rental income results from office space (some 72 per cent) and some 17
per cent from retail space. The properties from the Core plus and Value
added segments benefit from a diversified tenant structure with tenants of
high creditworthiness. The existing rental agreements have an average term
of 5.6 years, with the occupancy rate at around 90 per cent. Consequently,
the transaction will further improve the structure of DIC Asset's total
portfolio.
Ulrich Höller, CEO of DIC Asset AG: 'We have seized the opportunity to take
over all of our partner's shares in this attractive portfolio, with which
we have been familiar for years. With this transaction, we reinforce our
cash flow and simplify operative structures.'
For more information about DIC Asset AG, visit www.dic-asset.de.
About DIC Asset AG:
Established in 2002, DIC Asset AG, with registered office in Frankfurt am
Main, is a real estate company that focuses exclusively on investing in
German commercial real estate and maximising earnings from its investments.
The real estate portfolio amounts to approximately EUR 3.2 billion with
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; while the Co-Investments portfolio comprises minority
investments in other real estate segments. This includes opportunistic
investments, project developments and the Funds business segment, which
invests in Core real estate. DIC Asset AG has been listed on the SDAX index
since June 2006 and is represented in the international EPRA Index for the
most important real estate companies in Europe.
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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