DIC Asset AG / Key word(s): Bond

29.04.2011 / 14:23

Straight bond of up to EUR 100 million at 5,875 percent
The SDAX-listed real estate investor DIC Asset AG (WKN 509840/ISIN DE0005098404) has now finalised the terms for its previously announced corporate bond (straight bond). The five-year unsubordinated corporate bond has a volume of up to EUR 100 million and pays interest of 5,875 percent. The issue price is 100 percent of the nominal amount. The subscription period runs from 5 to 11 May 2011 and can be ended prematurely in the event of oversubscription. The scheduled initial listing date is 16 May 2011. The debentures are to be offered to private and institutional investors in Germany and Austria within the framework of a public offering. They are available for subscription in denominations of EUR 1,000 and are admitted in the OTC trading of Deutsche Börse AG (Segment Entry Standard for bonds).
DIC Asset AG is the first listed real estate company in Germany to offer such a large-volume straight bond to the capital market. For the company, the bond constitutes an additional flexible and attractive opportunity for debt financing above and beyond the classic mortgage loan, to which it is complementary. In March of this year, DIC Asset AG acquired new capital resources through an EUR 50 million capital increase, which was oversubscribed to a factor of five. The new funds - from both the capital increase and the placement of the bond - are predominantly to be used to enable DIC to react quickly and flexibly to attractive purchase opportunities on the market. This will permit DIC Asset AG to generate further growth and secure additional revenue and wealth creation.
The bond offers an attractive opportunity to participate in the success enjoyed by DIC Asset AG: with a balanced real estate portfolio (assets under management over EUR 3 billion), DIC Asset AG has been generating stable revenue and profits for many years. The main reason for this success is its in-house asset and property management service, which guarantees professional property management and letting from six locations in Germany while retaining geographical proximity to its tenants. The company is sound and recently reduced its debt ratio by a significant degree and strengthened its capital base. DIC Asset AG's steady flows of income from leasing activities provide a reliable cash flow, which complements a targeted sales strategy that exploits the added value generated in a strategic manner.

The positive leasing situation and stability of the business model are characterised by three factors: the properties are attractively situated in line with market requirements exclusively in German cities, are in good condition and are geared towards tenants' requirements; the very broad tenant base of DIC properties is characterised by sound credit ratings; and the tenancy agreements have long terms of over five years on average; for instance, around 22 percent of rental income comes from public-sector tenants.

Because it is listed on the stock exchange and a member of the SDAX, DIC Asset AG has to comply with high transparency standards. Comprehensive quarterly reporting on the financial results ensures close monitoring. For this reason, no rating is required for this bond within the scope of its listing on the German Stock Exchange in Frankfurt. Apart from its SDAX inclusion for several years, DIC Asset AG is represented in the established European real estate index EPRA, resulting in high levels of confidence of German and international investors.

Interested investors can subscribe to the debentures via their home or direct bank at the Frankfurt Stock Exchange as well as via the global coordinator and bookrunner Berenberg Bank, Hamburg, as well as the co-manager Solventis Wertpapierhandelsbank, Düsseldorf. A binding commitment by both banks in the acquisition and placement agreement means that a placement volume of at least EUR 60 million is guaranteed. The prospectus necessary for the public offering is approved by the German Federal Financial Supervisory Authority (BaFin) and is available on the company's website (www.dic-asset.de).

Ulrich Höller, CEO of DIC Asset AG: 'With the DIC bond, investors are investing in a real estate company that has remained profitable and innovative for many years and that is invested exclusively in Germany, the most stable market in Europe for commercial real estate.'
Disclaimer
This press release represents neither an offer to sell nor a request to submit an offer to buy or subscribe to securities from DIC Asset AG, but instead merely serves to provide information. This press release and the information contained therein are not intended for distribution, either directly or indirectly, in or within the United States of America, Canada, Australia or Japan.

The public offering for the debentures will be made solely on the basis of the prospectus approved by the German Federal Financial Supervisory Authority on 29 April, which is available free of charge from the company's website (www.dic-asset.de/investor-relations) and on the website of the Frankfurt Stock Exchange and from DIC Asset AG, Eschersheimer Landstraße 223, 60320 Frankfurt, Germany. The prospectus is the only applicable document for the planned offering and contains the information required for investors according to the statutory provisions.

This press release contains forward-looking statements. Forward-looking statements are statements which do not describe facts in the past, but instead use terms such as 'believe', 'assume', 'expect', 'presume', 'estimate', 'plan', 'intend', 'might', or similar formulations. By their very nature, these forward-looking statements are subject to risks and uncertainties, as they refer to future events and are based on current assumptions and estimates by DIC Asset AG, which may not occur at all, or not as expected, in the future. They therefore do not represent a guarantee for the occurrence of future events or actions on the part of DIC Asset AG, and the actual financial situation and the results of DIC Asset AG actually achieved, as well as the overall economic development and legal framework conditions, can differ significantly from the expectations expressly or implicitly assumed in the statements about the future and may not fulfil them. Investors are therefore warned not to base their investment decisions in respect of DIC Asset AG on the forward-looking statements expressed here.

DIC Asset AG does not accept any obligation to update or correct forward-looking statements contained herein about future events or developments insofar as there is no legal obligation to do so.
Further information about DIC Asset AG can be found on the Internet at www.dic-asset.de.

About DIC Asset AG:
Established in 2002, DIC Asset AG, with its 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. 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 segment comprises minority investments in other real estate segments. This includes opportunistic investments, development projects as well as the Funds business segment, where the company invests in first-class core properties. DIC Asset AG has been listed on the SDAX index since June 2006 and is represented in the international EPRA Index of the most important real estate companies in Europe.


Facts and figures 

Bond:
Securities category Bearer debenture
ISIN DE000A1KQ1N3
WKN  A1KQ1N
Listing Frankfurt Entry Standard
Issue volume Up to EUR 100 million, up to 100,000 debentures Denomination (nominal amount) EUR 1,000 per debenture Interest rate 5,875 percent per annum
Issue date 16 May 2011
Term 5 years
Early redemption Possible after two years
Subscription period 5 May 2011 to 11 May 2011, subject to extension or reduction


Enterprise data (IFRS): 2010 2009
Total earnings EUR 228.8 million EUR 171.3 million Cash flow from operating activities EUR 37.7 million EUR 38.7 million Equity ratio 28.6 percent 24.0 percent after 2011 capital increase  approx. 30 percent 
Net asset value EUR 598.5 million EUR 497.1 million Debt    EUR 1,376.1 million EUR 1,588.9 million
Total assets EUR 2,050.0 million EUR 2,213.4 million

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  
 
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