DIC Asset AG acquires German portfolio from SEB Immobilien-Investment GmbH
DIC Asset AG / Miscellaneous
Announcement, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement.
The Frankfurt-based real-estate investment company DIC Asset AG acquired a diversified property portfolio with 26 objects and around 263,000 sqm of floor space from the SEB Immobilien-Investment GmbH investment company in a bidding contest, which was advised by CB Richard Ellis. The total investment sum, including transaction costs, is around EUR 460 million. Both sides agreed to maintain silence about the exact purchase price. The newly acquired office and commercial properties are located in various German cities such as München, Hannover, Duisburg, Darmstadt, Essen, Mannheim and Hamburg. The objects are predominantly leased to prime tenants such as the Federal State of Hessen, the Deutsche Bahn, GE Money Bank and Saturn. The average lease length is approximately seven years. The rental income of EUR 26.5 million p.a. ensures a solid cash flow base for DIC Asset AG. DIC Asset AG plans to reduce the current vacancy rate of 15%. The portfolio diversification of 60% offices, 18% retail and other commercial real estate such as logistics ideally fits the investment strategy of DIC Asset AG. The individual properties will be included in both the core as well as the value-added segment of the company and portfolio strategy. DIC Asset AG was advised by Landesbank Berlin AG during the transaction.
Ulrich Höller, Chairman of the Board (CEO) of DIC Asset AG: ' The purchase of this valuable portfolio is the start of the announced implementation of our third strategy level, which will be characterised by significant market penetration. We are planning further acquisitions this year with a total investment volume of at least one billion euro.'
'With this sale, we have used the current market conditions to optimise our portfolio. In the course of growth, it was important for us to reduce the number of smaller objects from the early days of the fund. The sale will positively affect performance', Barbara Knoflach, Chairman of the Board of the SEB Asset Management AG and Managing Director of the SEB Immobilien Investment GmBH explained this strategic step. SEB wants to continue taking advantage of domestic investment opportunities for their internationally oriented funds. 'Even after the transactions are complete, Germany, with around 50 objects, remains an important market for the SEB funds.'
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. With this transaction, DIC Asset AG’s real estate portfolio includes more than one billion sqm of floor space, spread over 288 properties. The portfolio is divided into three segments: the Core 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 Opportunistic Co-Investments portfolio is comprised of real estate investments that have a more pronounced risk/return profile, which will be placed with third parties following a repositioning under an individual business plan. Real estate assets under management currently amount to approx. EUR 2.6 billion. DIC Asset AG has been included in the SDAX segment of the Frankfurt Stock Exchange since June 2006.
About SEB Immobilien Investment GmbH
The real estate investment company, SEB Immobilien-Investment GmbH, belongs to SEB Asset Management Deutschland, a part of the SEB concern. The business segments of SEB Immobilien-Investment GmbH comprise funds, portfolio and real estate management, including commercial and technical building management. It currently administrates a fund asset of around EUR 6.3 billion in three real estate mutual funds.
SEB Asset Management stands for the combination of international expertise with local know-How. Our investment approach is characterised by active management in small, specialised investment teams. SEB Asset Management manages a volume of EUR 19.7 billion in the form of mutual funds, special funds and discretionary portfolio management (as of the end of 2006).
DIC Asset AG/Investor Relations
Grünhof · Eschersheimer Landstraße 223
60320 Frankfurt am Main
Fon. (069) 9 45 48 58-39
Fax (069) 9 45 48 58-99
Issuer: DIC Asset AG
Eschersheimer Landstr. 223
60320 Frankfurt Deutschland
Phone: +49 69 9454858-0
Fax: +49 69 9454858-99
Listed: Amtlicher Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin-Bremen, München, Stuttgart, Düsseldorf
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