DIC Asset AG: Acquisition Volume 2018 of c. EUR 510 million exceeds the Target Range

Press Release

DIC Asset AG: Acquisition Volume 2018 of c. EUR 510 million exceeds the Target Range

• Acquisition of one asset for the proprietary portfolio and two assets for the DIC special funds for a total of c. EUR 100 million signed at the end of 2018
• Acquisition volume across segments totals c. EUR 510 million and thus tops target corridor of EUR 450-500 million
• Commercial Portfolio sales worth c. EUR 100 million notarised in 2018

Frankfurt am Main, 08 January 2019. DIC Asset AG, one of Germany’s leading listed property companies, successfully completed additional transactions both for its Commercial Portfolio and for its investment fund division during the fourth quarter, thus achieving the forecast targets for the year 2018 as a whole. The acquisitions volume across segments totalled c. EUR 510 million while sales from the Commercial Portfolio added up to c. EUR 100 million as planned.

In addition to a forward deal involving a property in Berlin that was contractually secured in mid-December, a property for the proprietary portfolio was acquired in Karlsruhe in late December. The office property in Karlsruhe, an important city for Germany’s IT sector, has convenient access to the local infrastructure as it is located right next to the central railway station. The multi-storey building, recently modernised, provides around 10,700 sqm of lettable area and is fully occupied at the moment. The tenant structure comprises companies from the personnel management sector, the software industry, as well as Design Offices – WALT is at 10.7 years. The seller is Art-Invest Real Estate, who purchased the vacant building in early 2018, completely leased it and now comprehensively modernises it.

Toward the end of the year, a fully occupied property of 8,400 sqm was acquired in the submarket of Eschborn-Süd, a suburb of Frankfurt am Main that has established itself as a conveniently connected back-office location, for the DIC Office Balance V special fund that was launched in June 2018. The purchase price (total investment costs, TIC) equalled EUR 25.8 million. The office building is let to a total of 12 tenants, the largest units being occupied by property developer Aurelis and the office services provider Regus Management. Here, the WALT is 4.3 years.

A property acquired in December 2018 is located in Cloppenburg and complements the DIC Retail Balance fund for retail real estate, which is also still in its investment stage. This asset is a retail warehouse park occupied by anchor tenant Kaufland on a long-term lease, plus an annexed shopping arcade with a variety of retailers. The average remaining lease term at this property is around 13.7 years. The fully occupied warehouse park with its gross lettable area of 6,700 sqm was completed in late 2017. The purchase price (TIC) was c. EUR 25.2 million.

Selling another three assets from the Commercial Portfolio, located in Magdeburg, Korntal-Münchingen and Frankfurt am Main, brought the volume of notarised sales in 2018 up to the planned total of c. EUR 100 million. Thus, DIC Asset AG continued to process of selling its non-strategic assets, that was started the previous year for the sake of portfolio optimisation.

“We are pleased to report at the outset of this new year that we fully succeeded in achieving or indeed exceeding our annual acquisitions and sales targets for 2018,” commented CEO Sonja Wärntges. “During the year concluded, our transaction teams made a solid contribution to our funds trading platform and to the expansion of our proprietary portfolio. Our unique hybrid business model thrives on the stable revenues from both segments.”

For more details on DIC Asset AG, go to the internet at www.dic-asset.de.

About DIC Asset AG:
DIC Asset AG is one of Germany’s leading listed property companies, and specialises in commercial real estate. With around 20 years of experience on the German real estate market, the company maintains a regional footprint on all major German markets through six branch offices, and has 181 assets with a combined market value of c. EUR 5.1 billion under management. DIC uses a hybrid business model to manage its business divisions Commercial Portfolio, Funds and Other Investments. Taking an active asset management approach, DIC employs its proprietary, integrated real estate management platform to raise capital appreciation potential in its business divisions and to boost its revenues.

In its Commercial Portfolio division (EUR 1.6 billion in assets under management), DIC acts as proprietor and property asset holder, and thus generates revenues both from the management of the assets and through the value optimisation of its own real estate portfolio. The Funds division (EUR 1.9 billion in assets under management) generates its revenues by acting as issuer and manager of special real estate funds for institutional investors. Gathered in the business unit Other Investments (EUR 1.6 billion in assets under management) are strategic financial investments, the management of properties in which the company holds no equity stakes and equity investments in property developments. 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. (as of 30.09.2018)