DIC Asset AG / Key word(s): Miscellaneous
02.03.2011 / 08:06
First DIC real estate fund fully placed
Further growth sought
The entry into the fund market of Frankfurt-based real estate investor DIC
Asset AG has proved to be a success. The equity capital of the 'DIC Office
Balance I' real estate special fund set up by the company, a specialist in
German commercial real estate, has now been fully paid in at a total of
around EUR 120 million. In addition, commitments in excess of this amount
have already been attracted for the fund's further development. Both the
fund and DIC's new business segment are focused on growth. The aim is to
increase the volume of the fund, in accordance with the investors. There
are even plans to set up more special funds in future.
DIC started to market the fund in the spring of 2010. A high initial
placement, accounting for more than 75 per cent of equity, saw the special
fund reach the starting line and become operational in the autumn, with the
properties being transferred to the fund's assets.
The special fund has attracted institutional investors, particularly
pension funds, foundations, savings banks, and family offices. As such, DIC
Asset AG has seen its circle of investors expand to include business
partners with an eye on the long term. The fund's investors have shares in
a selection of five top-quality properties in German metropolitan areas
(Berlin, Düsseldorf, Wiesbaden, Mannheim and Munich). Covering a total
rental space in excess of 58,000 m², the properties are almost fully let
(97.5 per cent), with over 80 per cent being used as offices. Without
exception, the chief tenants of the properties are first-rate companies
with excellent ratings. This offers considerable security in terms of
portfolio income. The average remaining tenancy term is almost six years.
The borrowing (LTV) ratio is currently around 49 per cent, with loans
arranged on a long-term basis.
The existence of an initial portfolio means investors can enjoy attractive
dividends as soon they make their investment. The target dividend is at
least 6 per cent per year. DIC Asset AG has invested in a 20 per cent
share. This means both initiator and investors share a long-term interest
in the project. DIC will offer the fund the benefit of its tried-and-tested
services in investment and real estate management. In addition to
investment income, the new business segment will generate regular and
stable revenue from the services provided. The partner investment company
as KAG provider is Warburg-Henderson subsidiary IntReal (International Real
Estate Kapitalanlagegesellschaft mbH).
Ulrich Höller, CEO of DIC Asset AG: 'Our achievement in fully placing our
first special fund has enabled us to enjoy rapid early success in our new
business segment. We are looking to really build on this in the coming
years.'
Further information about DIC Asset AG is available online at
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 with a dedicated investment focus on
investing in commercial real estate in Germany, pursuing a return-oriented
investment policy. Real estate assets under management amount to
approximately EUR 3.2 billion. DIC Asset AG's real estate portfolio
includes around two million square metres of floor space, spread over 316
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 contains minority holdings in
complementary real estate segments. This includes opportunistic investments
and the Funds business segment, which invests in top-quality Core real
estate. DIC Asset AG has been listed on the SDAX index since June 2006.
End of Corporate News
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Language: English
Company: DIC Asset AG
Eschersheimer Landstr. 223
60320 Frankfurt
Deutschland
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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