DIC Asset AG Continues to Expand its Institutional Business with Acquisitions Worth c. EUR 160 Million

Press Release

DIC Asset AG Continues to Expand its Institutional Business with Acquisitions Worth c. EUR 160 Million

• “LOOK 21” property in downtown Stuttgart acquired for c. EUR 122 million
• New-build “HangarOne” office property in Cologne-Ossendorf acquired for c. EUR 38 million
• These acquisitions bring assets under management up to c. EUR 8.8 billion

Frankfurt am Main, 1 October 2020. DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany’s leading listed property companies, signed the purchase agreements for another two high-end office properties in September. They are earmarked for institutional investment vehicles already launched.

All things considered, the total investment costs (TIC) for both properties approximated EUR 160 million, bringing the acquisition volume notarised since the start of the year up to c. EUR 293 million in the Institutional Business segment alone.

“With the two new additions in Cologne and Stuttgart, we have now cleared the half-way mark of this year’s acquisition target of EUR 500-800 million for the Institutional Business. Additional acquisitions still in the pipeline will be closed in the coming weeks. We are pleased with the robustness of the German transactions market, and therefore very confident of our ability to achieve the acquisition target in the course of a dynamic final quarter as planned,” commented Johannes von Mutius, Chief Investment Officer of
DIC Asset AG.

Section B of the “LOOK 21” property on Heilbronner Strasse in downtown Stuttgart was acquired on behalf of a special AIF for c. EUR 122 million (TIC). It was sold by USWM-Immobilien GmbH together with its two shareholders, Südwestmetall (the Metal and Electrical Industry Employers’ Association for Baden-Württemberg) and Unternehmensverband Südwest (an independent employers’ association). The micro-location of the multi-tenancy-capable property is defined specifically by its integration in the central Europaviertel locality, and by its excellent transportation access. The new-build property of around 11,200 sqm of lettable area has landmark character because of its modern architecture and is fully let to a high-net-worth tenant from the infrastructure sector. The lease term is 12 years. Stuttgart-based estate agency PH REAL Peter Holtz Real Estate advised the seller exclusively within the framework of the sales process.

The new-build “HangarOne” in Cologne was developed on the historic airport grounds and is now part of the dynamic office market of the Ossendorf district north-west of the inner city. It was acquired for another institutional fund from the Aachen-based developer nesseler projektidee at a cost of c. EUR 38 million (TIC). The five-storey office building will be completed by the fourth quarter of 2020. The property has a lettable area of around 8,500 sqm, and is defined by a high building quality and a competitive fit-out standard. The pre-letting level is 60%, the incoming tenants being high-credit-quality companies from the sectors of special industrial materials, flexible office and IT consulting. The weighted average lease term (WALT) is around 9 years.

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 186 assets with a combined market value of c. EUR 8.5 billion under management (as of 30/06/2020).

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 1.9 billion in assets under management, as of 30/06/2020), 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 6.6 billion in assets under management, as of 30/06/2020), which operates under the name GEG German Estate Group, DIC Asset AG generates income by 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.

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