DIC Asset AG: Dynamic Growth in the Fund Business Continues

Frankfurt, 4 November 2013

DIC Asset AG: Dynamic Growth in the Fund Business Continues

– Two properties acquired for retail fund (some EUR 30 million)

– Acquisition volume of 2013 climbs to approx. EUR 105 million

– Fund business expected to see strong earnings growth in 2013

DIC Asset AG (WKN A1X3XX / ISIN DE000A1X3XX4) has continued its dynamic growth in the fund business: The Company’s ‘DIC HighStreet Balance’ institutional fund for retail property just acquired two such assets let on long-term leases to renowned retail occupiers in prime locations of the pedestrian zones in Trier (SinnLeffers) and Halle (C&A), investing around EUR 30 million. The total volume of approx. EUR 500 million thereby realised brings investments up to more than 70 per cent of the target volume of approx. EUR 700 million that the two current funds are supposed to achieve by 2015.

Assets that DIC Asset AG purchased for the fund in the ongoing year 2013 now add up to an acquisition volume of approximately EUR 105 million. The assets acquired will generate an annual FFO contribution of approximately EUR 1.2 million for DIC Asset AG. In the concluded 2012 financial year, the Company had already increased its earnings from investment income in its fund business operations substantially from EUR 3 million to around EUR 4 million. In 2013, DIC Asset AG expects to see a brisk growth in income from the fund business with a corresponding positive effect on the FFO.

Ulrich Höller, CEO of DIC Asset AG: ‘As it is, the fund business with its dynamic growth makes a significant contribution to the income quality of DIC Asset AG. The most recent acquisitions of additional prime retail properties will ensure a long-term rent cash-flow from high-quality tenants for the fund investors.’

The acquired properties in detail:

– Trier: The retail property in Trier has a lettable area of 7,400 sqm, and is fully let to the fashion multiple SinnLeffers on a 10-year rental contract. The conspicuous building with a façade rich in tradition is defined by its prime high-street location in the historic town centre of Trier (at Fahrstrasse 1). It was sold by DIH Deutsche Industrie-Holding, while BNP Paribas Real Estate acted as broker.

– Halle: The retail property in Halle has a rental space of 6,600 sqm, and is fully let to C&A, again on a 10-year lease. The building is situated in downtown Halle (at Leipziger Strasse 10) in the prime high-street location, with renowned retail multiples such as P&C, Esprit, H&M, Görtz, and Deichmann operating in the immediate vicinity. The property was sold by Redevco Deutschland.

About the Fund Business of DIC Asset AG:

DIC Asset AG has launched two investment funds since 2010: The ‘DIC Office Balance I’ institutional fund for office property currently has a fund volume of approximately EUR 400 million under management, while the ‘DIC HighStreet Balance’ institutional fund for retail property is currently invested in a volume of approx. EUR 100 million (including the recently acquired retail properties in Trier and Halle). The current aggregate volume of both funds in an amount of approx. EUR 500 million now exceeds 70 per cent of the target volume of approx. EUR 700 million it is planned to have by 2015. DIC Asset principally holds a significant interest in the funds, acting as co-investor while also contributing property and investment expertise as service provider. Among the institutional investors of these funds are mainly pension funds, foundations, insurance companies, and family offices. The investor pool of DIC Asset AG has thus been expanded to include additional business partners with a long-term horizon.

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 currently amount to approx. EUR 3.2 billion, comprising around 250 properties. 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 1.8 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The Co-Investments segment (pro-rata share of EUR 0.3 billion) comprises fund investments, joint-venture investments, and interests in development projects. DIC Asset AG provides a direct service to tenants through its own real estate management teams in six branch offices located at the regional hubs within the portfolio. This provides DIC Asset AG with an edge in terms of market presence and expertise, and builds the foundation for maintaining and increasing income and the value of its 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.
 

Press Contact:
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Investor Relations & Corporate Communications Contact:
Immo von Homeyer
DIC Asset AG
Eschersheimer Landstraße 223
D-60320 Frankfurt am Main
phone +49-69-274033-86
fax +49-69-9454858-99
i.vonhomeyer@dic-asset.de