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DIC Asset AG acquires retail properties for EUR 108 million

DIC Asset AG / Key word(s): Miscellaneous14.03.2011 / 07:32DIC Asset AG acquires retail properties for EUR 108 million DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) has acquiredtwo retail properties in Bremen and Chemnitz with 'Galeria Kaufhof' as thetenant from a joint venture controlled by affiliates of AREA PropertyPartners and Rida Development Corporation following an exclusivetransaction. The investment volume as part of a share deal is around EUR108 million. With this large-scale acquisition, DIC Asset is returning as abuyer on the investment market, as previously announced. Jones Lang LaSalleacted as an intermediary for the transaction.The two properties, situated in absolutely prime locations in the two citycentres, have a combined retail floor space of 49,000 sqm. The propertiesare fully let. The tenancy agreements have an average term of 11.5 years.The annual rental income of approximately EUR 7.3 million equates to arental yield in relation to the investment purchase price of nearly 7 percent.Both properties are a sensible addition and will make a noticeableimprovement to DIC Asset AG's investment portfolio. The annual rentalyields will increase by around 6 per cent, with portfolio volumesincreasing by around 5 per cent. In addition, long-term tenancy agreementswill significantly increase the average rental term of the portfolio.Closing, and the transfer of ownership of the two properties to DIC AssetAG, is expected to take place in the beginning of the second quarter of2011, meaning that the acquisition will impact on income very quickly. Thiswill lead to a direct FFO contribution of more than EUR 3 million thisyear. Existing equity will be predominantly used for the transactioninitially. The bindingly pledged borrowed capital can be obtained graduallyup to the end of the year. Financing of this portfolio with ahighly-regarded German real-estate mortgage lender is established on along-term basis for up to ten years.Ulrich Höller, CEO of DIC Asset AG: 'This transaction marks the first of aseries of steps for achieving growth. With this purchase, we arestrengthening our FFO with two fully leased properties with high quality, asecure long-term cash flow and an above-average rental yield.'Further information about DIC Asset AG is available online atwww.dic-asset.de.About DIC Asset AG:Established in 2002, DIC Asset AG, with its registered office in Frankfurtam Main, is a real estate company with a dedicated investment focus oninvesting in commercial real estate in Germany, pursuing a return-orientedinvestment policy. Real estate assets amount to approximately EUR 3.2billion with around 290 properties. The portfolio is divided into threesegments. The Core plus portfolio includes the proprietary portfolio heldon a long-term basis and offering stable, attractive rental yields. TheValue-Added portfolio contains real estate with promising performancepotential over the medium term; while the Co-Investments portfoliocomprises minority investments in other real estate segments. This includesopportunistic investments, project developments as well as the Fundsbusiness segment, where we invest in first-class core properties. DIC AssetAG has been listed on the SDAX index since June 2006 and is part of theinternational EPRA index.End of Corporate News---------------------------------------------------------------------14.03.2011 Dissemination of a Corporate News, transmitted by DGAP - acompany of EquityStory AG.The issuer is solely responsible for the content of this announcement.DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de---------------------------------------------------------------------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  ---------------------------------------------------------------------  115346 14.03.2011