DIC Asset AG: Acquisition Volume increases by c. EUR 152 Million from Acquisitions in Berlin and Bremen

Press Release

DIC Asset AG: Acquisition Volume increases by c. EUR 152 Million from Acquisitions in Berlin and Bremen

Frankfurt am Main, 9 August 2019. DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany’s leading listed property companies, announced the acquisition of further properties for its two divisions Commercial Portfolio and Institutional Business in a volume of c. EUR 152 million (total investment costs, TIC). The transactions brought DIC Asset’s acquisition volume across segments up to c. EUR 1 billion for the 2019 financial year.

Commercial Portfolio: Modern Office Building Acquired in Berlin-Mitte

In Berlin’s borough of Mitte, the modern “SAFE” office building with a gross lettable area of around 10,100 sqm was notarised for the company’s proprietary portfolio (Commercial Portfolio), subject to suspensive condition. The purchase price approximates EUR 111 million. The very well-appointed property is located in a premium location in the government district near Friedrichstrasse, Gendarmenmarkt and the Unter den Linden boulevard and is fully occupied for a remaining lease term (WALT) of 5.1 years by Deutsche Kreditbank AG (DKB), a German direct bank. With a planned transfer of ownership, rights and duties in December 2019, the property will contribute c. EUR 3 million of annualised funds from operations (FFO) for the Commercial Portfolio. Berlin’s office market is highly attractive for property users and investors. Due to its large connected office floor plate of high quality and in a prime location, the property has a high future potential on Berlin’s dynamic market. Given the current vacancy rate of 1.8 % on Berlin’s office market, the strong and steadily growing demand for space can only be met by new-build construction or redevelopments. This makes it safe to anticipate continued rent growth and falling vacancies in the city.

Further Acquisition for the DIC Office Balance V Special Fund

In Bremen’s inner city, an office ensemble consisting of two multi-tenant office buildings within walking distance of cathedral, city hall and pedestrian precinct was acquired for the DIC Office Balance V (OB V) special fund, launched in 2018. The purchase price for both assets was c. EUR 31 million. The properties are in different real estate stages. The property “Am Brill” (gross lettable area: around 5,000 sqm) is let to c. 80 % to blue-chip tenants from the insurance and logistics industries and generates a stable cashflow and offers additional mid-term potential. The office complex “Am Wall” (gross lettable area: around 12,200 sqm), which consists of three building sections, is largely empty since the former head tenant moved out. The property will be repositioned in the Bremen office market after planned investments and modernisation of the spaces in the next months. The WALT for both properties together is 4.9 years. The office market in Bremen has been characterised by a declining office vacancy rate in recent years. Due to the acute shortage of space in prime locations, it is reasonable to assume that the rental growth on Bremen’s office market will keep following an upward trend. Considering that capital expenditures to upgrade the building fabric are planned, the acquired properties have a high value-add potential. The transfer of ownership, rights and duties for this property is planned to take place in Q3 2019. With this acquisition, the fund has reached a total value of c. EUR 210 million and thus more than 50 % of its target volume. The investment focus of the fund, which belongs in the successful “Office Balance” series of DIC Asset AG, is on commercial real estate predominantly used as offices in major and mid-size cities in Germany.

“With the purchase in Berlin, we secured a modern property in a highly competitive investment market with future potential whose cash flow will ideally complement our Commercial Portfolio. The office ensemble in Bremen is an attractive addition to the core/core plus portfolio of the DIC Office Balance V fund that generates a secure and attractive cash flow on the one hand and is a lucrative refurbishment on the other hand. Here, we will demonstrate our real estate expertise by putting our repositioning and value-add skills to work,” said Sonja Wärntges, CEO, as she commented the acquisitions.

The transaction in Berlin was mediated by CBRE. Colliers International advised DIC Asset on the properties in Bremen.

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

About DIC Asset AG:

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 175 assets with a combined market value of c. EUR 7.1 billion under management (as of 30/06/2019). Taking an active asset management approach, DIC Asset AG employs its proprietary, integrated real estate management platform to raise capital appreciation potential company-wide and to boost its revenues.

In its Commercial Portfolio division (EUR 1.8 billion in assets under management), DIC Asset AG 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.

In the Institutional Business division (EUR 5.3 billion in assets under management), DIC Asset AG generates income from structuring and managing investment vehicles with attractive dividend yields for national and international institutional investors.

DIC Asset AG has been listed 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.

IR Contact DIC Asset AG:
Peer Schlinkmann
Head of Investor Relations & Corporate Communications
Neue Mainzer Strasse 20
D-60311 Frankfurt am Main
Phone +49 69 9454858-1492
ir@dic-asset.de