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DGAP-News: DIC Asset AG / Key word(s): Real Estate/Acquisition
DIC Asset AG Clears Annual Acquisition Target of c. EUR 1.3 Billion with Three more Acquisitions for c. EUR 171 Million
Frankfurt am Main, 28 November 2019. DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany’s leading listed property companies, had sale and purchase agreements notarised in early November that add up to a combined total of c. EUR 171 million (total investment costs). Among the acquisitions are two office properties earmarked for existing investment vehicles and institutional investors via the subsidiary GEG German Estate Group. The new-build construction project in Offenbach near Frankfurt represents a state-of-the-art property that was secured by a forward deal. As a result of the purchases, DIC Asset AG achieved its stated acquisition target of c. EUR 1.3 billion ahead of time.
For a purchase price of c. EUR 59 million, the company bought the seven-storey multi-tenant property located at Benzstrasse 1 in the Mitte office and business park of Bad Homburg, a city in the Rhine-Main region. The asset has a lettable area of around 14,500 sqm and is let to just two tenants from the pharmaceuticals sector. The remaining lease terms average around 8 years. The property is expected to be transferred into the DIC Office Balance V institutional fund toward year-end and enhance the regional diversification of the portfolio. CBRE acted as estate agent for this deal.
Within the framework of a forward deal, DIC Asset AG acquired a new-build construction project that is already pre-let in its entirety and located at Berliner Strasse 300 in Offenbach near Frankfurt. Here, the purchase price (TIC) was c. EUR 85 million. Once completed, the property will have a total lettable area of around 13,300 sqm and will be fully occupied by the AXA insurance conglomerate and the flexible office provider Regus. With rental revenues of c. EUR 3.1 million annually, the property will contribute c. EUR 2.3 million annually to the FFO. The leases were signed for an average term of around 12.4 years. The transfer of possession, benefits and burdens is expected to take place in early 2021. Cushman & Wakefield acted as estate agent.
A core office property in Bochum was also acquired for the open-ended special fund GEG Public Infrastructure I for a purchase price of around EUR 27 million.
About DIC Asset AG:
With more than 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 173 assets with a combined market value of c. EUR 7.3 billion under management (as of 30/09/2019). 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 its Institutional Business division (EUR 5.5 billion in assets under management), which operates under the name GEG German Estate Group, 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 SDAX-listed since June 2006.
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|Company:||DIC Asset AG|
|Neue Mainzer Straße 20|
|60311 Frankfurt am Main|
|Phone:||+49 69 9454858-1492|
|Fax:||+49 69 9454858-9399|
|ISIN:||DE000A1X3XX4, DE000A12T648, DE000A2GSCV5, DE000A2NBZG9|
|WKN:||A1X3XX, A12T64, A2GSCV, A2NBZG|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange|
|EQS News ID:||923439|
|End of News||DGAP News Service|