DGAP-News: DIC Asset AG / Key word(s): Real Estate
DIC proprietary holdings grow to c. EUR 4.5 billion
Frankfurt am Main, 25 May 2022. DIC Asset AG (“DIC”), ISIN: E000A1X3XX4, is successfully implementing its growth strategy in the logistics sector. In the months since summer 2020, when it made the strategic decision to shift the focus of its investment strategy to this asset class, DIC has reached a number of milestones. The completed acquisition of a majority interest of 60% in VIB Vermögen AG (“VIB”) has made DIC the leading player for logistics and office real state nationwide. Over the past months, the logistics real estate market developed very briskly, and was defined by persistently strong demand and large-scale trading volumes. In response to this market environment, VIB asked a renowned internationally active appraiser to update the valuation of its portfolio, and today announced that the provisional appraisal suggests that its market value will probably grow to EUR 2.3 billion. With the full consolidation completed by 1 April 2022, this increases the value of DIC’s proprietary portfolio up to c. EUR 4.5 billion. Its assets under management have reached their highest-ever value at c. EUR 13.8 billion.
“We took a major strategic growth step by acquiring the majority interest in VIB Vermögen AG. Considering the provisional valuation that was announced today, we are now looking at a well-structured, sustainable and diversified consolidated DIC balance sheet portfolio of c. EUR 4.5 billion whose focus is clearly on logistics and offices. This means we are superbly positioned to keep creating value-added for our stakeholders and make a success of it,” commented Sonja Wärntges, CEO of DIC.
DIC acquired the majority stake in VIB within the framework of a partial takeover bid as well as additional bilateral acquisitions over the past months. This has resulted in a weighted purchase price of EUR 51.08 per VIB share and a total consideration of c. EUR 850 million that is fully covered by VIB’s property values.
The provisional market value of the VIB portfolio, with an annualised rental income of c. EUR 92 million as of 31 March 2022, implies an attractive yield of around 4%. From DIC’s perspective, the outcome of the third-party valuations announced today confirms the high quality of the VIB portfolio and vindicates the purchase price. Thus the logistics asset class now accounts for the largest share of the proprietary portfolio (Commercial Portfolio).
About DIC Asset AG:
DIC Asset AG is Germany’s leading listed specialist for office and logistics real estate with more than 20 years of experience on the real estate market and access to a broad-based network of investors. Our business is based on a regional and inter-regional real estate platform with nine offices on the ground in all major German markets (with VIB Vermögen AG included). We manage a pro-forma total of 349 assets with a combined market value of EUR 13.8 billion on site, always close to our properties and their occupiers.
The Commercial Portfolio segment comprises real estate held for our own account. Here, we generate steady cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management, and realising gains from sales.
In the Institutional Business segment, we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment vehicles that return attractive dividend yields.
DIC Asset AG has been SDAX-listed since June 2006.
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