DIC Asset AG Acquires REWE Headquarters, Adding another High-End Office Property to its Portfolio

DIC Asset AG Acquires REWE Headquarters, Adding another High-End Office Property to its Portfolio

– Acquisition volume increased to EUR 135 million in 2012

– Proprietary portfolio boosted and institutional fund business expanded

DIC Asset AG (German securities ID WKN 509840/ ISIN DE0005098404) just acquired another high-end office property in Cologne for its own real estate portfolio. The building houses the corporate headquarters of German food retailer REWE Group. The investment volume comes to approx. EUR 23 million. As recently as last week, DIC announced the purchase of the 'Looper' office property in Duisburg for the office fund, quoting a transaction volume of approx. EUR 27 million. These two transactions in November bring DIC's acquisition volume in 2012 up to a total of EUR 135 million.

Both properties enhance the portfolio quality of DIC Asset AG because they are let to high-net-worth tenants and will generate stable long-term revenues. The transfer of ownership for either property will take place before the end of 2012. With the start of 2013, they will generate an annual FFO contribution to income of more than EUR 1.6 million.

The Acquisitions in Detail:

– DIC Asset AG acquired the corporate headquarters of REWE Group in Cologne (at Stolberger Strasse 76/78) from an international investor within the framework of a share deal (shares of the property vehicle being acquired). The property is earmarked for DIC Asset AG's proprietary portfolio (the 'Commercial Portfolio'). The property, which has a letting space of around 24,000 sqm spread across seven floors as well as 450 underground car park slots, is fully let for a lease term of around ten years. With an initial rental yield of around 8 percent, the property makes an attractive and stable contribution to the cash flow of DIC Asset AG. The prestigious high-end office property (built in 1994) was extensively modernised in 2008 and in 2011. Among other things, it has excellent transportation access for the roughly 800 REWE staff who work here.

– As already reported on 13 November 2012 on occasion of the nine-month result, DIC Asset AG acquired the office property 'Looper' in Duisburg's Innenhafen port district (at Schifferstrasse 166). This asset will be added to the 'DIC Office Balance I' institutional fund in which DIC itself holds a 20-percent stake. The property was sold by a member company of Kölbl Kruse Group based in Essen. Built in 2009, the building has a letting space of more than 10,000 sqm on five office floors that are largely occupied. This property, too, generates stable long-term revenues. With average rental terms of around six years, this multi-tenant property is let long term to tenants with good credit ratings and hailing from a variety of sectors (industrial, transportation, finance). On the buyer side, legal consulting for the transaction was provided by
CMS Hasche Sigle (Frankfurt am Main). The acquisition was brokered by RHEINWERT Immobilien Consulting.

The acquisition of the 'Looper' asset has brought the expansion of the fund business a big step forward: With investments of EUR 365 million now committed, the half-way mark for the possible total volume of up to EUR 700 million for both funds ('DIC Office Balance I' and the 'DIC HighStreet Balance' currently being set up) has already been exceeded.

For more details on DIC Asset AG, please visit us on the Internet at www.dic-asset.de.

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. Real estate assets under management amount to approx. EUR 3.3 billion, comprising around 270 properties, of which EUR 2.2 billion is carried on DIC Asset AG's balance sheet. The Company's investment strategy is geared to the continued development of a high-quality, highly profitable and regionally diversified portfolio. The real estate portfolio is structured in two segments: the Commercial Portfolio (EUR 1.9 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The Co-Investments segment (EUR 0.3 billion) comprises fund investments, joint-venture investments, and interests in development projects. Own real estate management teams provide a direct service to tenants through six branch offices located at the regional hubs within the portfolio. This provides an edge in terms of market presence and expertise, and builds the foundation for maintaining and increasing the value of real estate assets. DIC Asset AG has been included in the SDAX^(R) segment of the Frankfurt Stock Exchange since June 2006. The Company's shares are also included in the EPRA index, which tracks the performance of the most important European real estate companies.