DGAP-News: DIC Asset AG / Key word(s): Real Estate/Acquisition
Successful year-end sprint 2021 – total transaction volume of DIC up to c. EUR 1.9 billion
Frankfurt am Main, 10 January 2022. DIC Asset AG (“DIC”), ISIN: DE000A1X3XX4, one of Germany’s leading listed property companies, had another three acquisitions notarised with combined total investment costs (TIC) of c. EUR 268 million. Two of the assets acquired are earmarked for the third-party business (Institutional Business), while the third one is intended for the proprietary portfolio (Commercial Portfolio). The acquisitions for third parties will transfer to DIC’s warehousing in the short-term. Moreover, a disposal of an asset from an special fund was notarised. On the whole, DIC thereby completed c. EUR 1.6 billion worth of acquisitions across segments and c. EUR 0.3 billion worth of property sales by the end of the year (adding up to a combined transaction volume of c. EUR 1.9 billion).
“At the end of a year, our industry demands more than ever exactly what distinguishes us at DIC: speed, creativity and quality. As a result, we have achieved an outstandingly high transaction volume for the third time in a row. This is the successful work of our teams, which are very well positioned and have a network in the top locations. With this team, we will continue to grow in 2022 and create sustainable value for our investors, tenants and shareholders,” commented Sonja Wärntges, CEO of DIC.
Details on the Properties:
In Berlin’s district of Tegel, DIC acquired the “Am Borsigturm 130” administrative building for a new infrastructure special fund. The property was rented by the German Institute for Federal Real Estate (BImA) on behalf of the German Federal Archives for a term of around 17 years. Modernised in 2021, the property provides about 18,500 sqm of lettable area, roughly half of which is occupied by offices while archives take up the other half. Its location at the historic site of the Borsigwerke locomotive factory is characterised by highly convenient transport links to downtown Berlin. The acquired property lies in a prosperous area with further interesting property developments.
In addition, DIC purchased a new-build office development at Warnheimer Strasse 74-74b in Düsseldorf from LANGEN Immobiliengruppe that is scheduled to be completed by 2023 and earmarked for the same infrastructure special fund. This property extends over c. 12,600 sqm of effective floor area and is suitable for multi-tenant occupancy. Once completed, it will be rented by the BImA to accommodate the main customs office (on a planned WALT of around 10 years). BImA already signed the lease agreement in August 2021. The property lies within an attractive micro-environment close to Düsseldorf Airport. It is pre-certified at the DGNB Gold level of the German Sustainable Building Council.
For its proprietary portfolio, DIC bought a high-end logistics property of the light industrial category with about 11,100 sqm of lettable area in Gottmadingen in the Konstanz district. The TIC for this property, located at Industriepark 316-320, approximated EUR 28 million. The transfer of ownership rights and obligations is expected to take place during the first quarter of 2022. The fully occupied property with new-build quality includes two adjacent warehouses plus a multi-storey car park on a total site area of around 20,000 sqm. The tenant is a globally active aluminium processor with an excellent credit rating and a diversified client base. Annual rent revenues add up to c. EUR 1.4 million. The weighted average lease term (WALT) is around 11 years.
Just before year-end 2021, the “DIC Office Balance V” special fund seized a lucrative opportunity to sell an office property in the Munich district Berg am Laim.
About DIC Asset AG:
DIC Asset AG is Germany’s leading listed specialist for commercial 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 eight offices on the ground in all major German markets. We manage 237 assets with a combined market value of c. EUR 11.4 billion on site, always close to our properties and their occupiers.
The Commercial Portfolio segment represents the proprietary real estate portfolio of DIC Asset AG. 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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