DIC Asset AG Invests in Munich, a Highly Attractive Location – Two of the City’s Most Outstanding Properties Acquired for c. EUR 635 Million: ‘Uptown Tower’ and ‘Campus C’

Press Release

DIC Asset AG Invests in Munich, a Highly Attractive Location – Two of the City’s Most Outstanding Properties Acquired for c. EUR 635 Million: “Uptown Tower” and “Campus C”

• Landmark property “Uptown Tower” acquired for warehousing portfolio
• “Campus C” enlarges proprietary portfolio by c. EUR 66 million
• Footprint expanded in Munich, a top destination
• Mid-year target achieved: Transaction volume rises to EUR 900 million
• Assets under management rise to c. EUR 11.4 billion
• ESG strategy: seeking green building certifications

Frankfurt am Main, 7 June 2021. DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany’s leading listed property companies, announced the acquisition of two office properties in Munich via an off-market transaction today.

With a height of 146 metres, the “Uptown Tower” is the tallest building in the state of Bavaria, and clearly defines the skyline of Munich as an attractive high-rise. The tower is the clearly visible centre of a coveted office location in the fast-growing metropolis of Munich, and characterised by impressive vistas. The second investment, the prestigious “Campus C” property is also defined by its exceptional visibility and high recognisability as well as by its value appreciation potential.

The total investment costs (TIC) approximate EUR 635 million. With the acquisition, DIC Asset AG transacted its largest investment in the Bavarian state capital to date, and will benefit long-term from the economic development of the metropolis. Both properties are fully tenant-occupied. The transfer of benefits and burdens for both of the properties is scheduled for the end of the second quarter of 2021.

“We acquired two of Munich’s defining landmark properties. This acquisition demonstrates just how well we are networked in the market. Whenever trophy properties like these come onto the market, we stand every chance of success, creating value for our investors and for ourselves,” said Sonja Wärntges, the CEO of DIC Asset AG. “Moreover, we now have an even stronger presence on Munich’s market with these two properties. We are witnessing a continuous inflow of companies, and a steadily rising demand for modern and flexible office units. We are now in a position to provide these. And we could further enhance the appeal of the properties by upgrading them for their green building certification. Employing the dynamic performance we are known for, we create value-added for the city, the people in it, and for our business partners.”

Increasing the Assets under Management in Munich, one of the “Top 7” Cities

Closing this transaction has pushed the portfolio share of properties under the management of DIC Asset AG in Munich, one of the “Top 7” cities, from around 7% to more than 11% by market value. The DIC office in Munich will provide optimal on-site management of the two properties.

Munich is a highly attractive location. The growth drivers of Munich are most notably information and communication technology, the service sector, research and knowledge-intensive industries, and the cultural and creative industries. Munich is also Germany’s leading insurance hub and its “DAX capital”: Five of the companies listed in the DAX 30 index have their principal place of business in the greater Munich area, testifying to the attractiveness of the city.

ESG: Consistently Raising the Green Building Share in the Managed Portfolio

DIC Asset AG will seek speedy certification of the two properties as green buildings. With the expansion of the green-building share of the portfolio under management, DIC Asset AG is consistently implementing a key component of its future ESG strategy. Roughly EUR 2.1 billion, and thus a share of about 20% of the total assets under management, which currently amount to EUR 10.6 billion, are already certified at this time. Getting these acquisitions certified will bring the proportion up to about 25%.

“Uptown Tower” Earmarked for Warehousing Portfolio

Completed in 2004, the “Uptown Tower” is a 37-storey office building with an overall height of 146 metres and a lettable area of around 52,300 sqm. Since their structural alteration in 2018, the premises are characterised by open-plan flexible unit layouts with modern air conditioning. They are occupied in their entirety on a long-term lease by the national headquarters of Telefónica Germany, one of the country’s three leading integrated network operators and communications infrastructure providers.

Prior to its placement with institutional investors, the “Uptown Tower” will briefly become part of the warehousing portfolio of DIC Asset AG. It will be fully managed by the company’s dedicated team on the ground, which will implement the measures necessary to obtain a green building certification, among other things.

“Campus C”: Attractive Rental Cash Flows and Capital Appreciation Potential for the Commercial Portfolio

“Campus C,” a fully occupied multi-tenant property, was acquired for c. EUR 66 million and will be held in the proprietary portfolio. Providing a gross lettable area of 9,200 sqm, it has value-add character and promises a steadily increasing value appreciation potential. Main tenants of the property are the US software company Adobe Systems and two public sector tenants. The annual rental income approximates EUR 2.4 million euros, while the secure remaining lease term (WALT) is 3.1 years. The property is defined by its high alternative use potential as it can be divided into units comprising parts of a floor or entire floors. The efficient layout permits various floor-plan solutions, from private offices to modern workplace concepts.

About DIC Asset AG:

DIC Asset AG is Germany’s leading listed specialist for commercial real estate with more than 20 years of experience on the real estate market and access to a broad-based network of investors. Our business is based on a regional and inter-regional real estate platform with eight offices on the ground in all major German markets. We manage 231 assets with a combined market value of c. EUR 10.6 billion on site, always close to our properties and their occupiers.

The Commercial Portfolio segment (EUR 2.0 billion in assets under management) represents the proprietary real estate portfolio of DIC Asset AG. Here, we generate constant cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management and realising gains from sales.

In the Institutional Business segment (EUR 8.6 billion in assets under management), we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment vehicles that return attractive dividend yields.

DIC Asset AG has been SDAX-listed since June 2006.

Contact for institutional investors at GEG German Estate Group:
Christian Bock
Chief Institutional Business Officer
Neue Mainzer Str. 2-4 * MainTor Panorama
D-60311 Frankfurt am Main
T +49 69 274033-1220

IR/PR Contact DIC Asset AG:
Peer Schlinkmann
Head of Investor Relations & Corporate Communications
Neue Mainzer Str. 20 * MainTor Primus
D-60311 Frankfurt am Main
T +49 69 9454858-1492
ir@dic-asset.de