DIC Asset AG: Launch of Second Institutional Real Estate Fund ‘DIC High Street Balance’

DIC Asset AG: Launch of Second Institutional Real Estate Fund 'DIC High Street Balance'

DIC Asset AG, a Frankfurt-based investor specialised in German commercial real estate (German Securities ID 509840 / ISIN DE0005098404) has started to implement its second institutional real estate fund, 'DIC High Street Balance,' with a planned investment volume of approximately EUR 250 million.

The retail fund will invest in Grade A commercial properties in downtown locations and pedestrian zones of middle- and high-order centres in Germany. Investors will benefit from attractive distributions of around 5 per cent annually. In analogy to its first institutional fund, DIC Office Balance I, current fund volume: around EUR 350 million, DIC Asset AG acts as co-investor in its own right as it holds a significant stake of 20 per cent in the fund. This arrangement ensures the permanent congruence of initiator and investors interests. The overall planned volume for these two DIC funds is around EUR 700 million, to be achieved in the coming two years.

As with the previous fund, DIC Asset AG will make its demonstrable investment and real estate management services available for this second fund: In addition to its investment income, the company generates regular and stable revenues from real estate management rendered. The resulting FFO contributions are growing steadily. Having totalled nearly EUR 3 million in 2011, they will rise to around EUR 4 million in 2012.

Many years of Retail Experience

In setting up the fund, DIC exploits its long-standing letting and investment experience in the retail trade, and thereby ensures a high-quality composition of the fund portfolio. Great contacts to a number of leading retail multiples in Germany (including P&C, Görtz, Saturn, TK Maxx, H&M) help to identify high-quality tenants. The entire portfolio under DIC's management adds up to 260,000 sqm of retail space with around 330 retail tenants. 23 per cent of the rental income are attributable to the management of retail space and retail properties. The take-up in this use segment shows a long-term median of around 30,000 sqm per year (new letting contracts and renewals). The vacancy rate of the retail space is only five per cent.

With equity commitments by five German institutional investors, well respected player among others as of pension funds and insurance companies, in place, more than EUR 90 million in equity are already available for investments with the launch. With a planned equity rate of around 45 per cent, these first equity commitments will permit investments worth EUR 170 million from now. The acquisition of two retail properties in Dresden and Mannheim, involving an acquisition volume of approximately EUR 25 million, has already been realised. Just like with the first fund, the Warburg-Henderson subsidiary IntReal (International Real Estate Kapitalanlagegesellschaft mbH) serves as investment service company.

For more details on DIC Asset AG, please visit us on the Internet at www.dic-asset.de.

About DIC Asset AG:

Established in 2002, DIC Asset AG, with registered offices in Frankfurt am 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 amount to approx. EUR 3.3 billion, comprising around 270 properties, of which EUR 2.2 billion is carried on DIC Asset AG's statement of the balance sheet. The investment strategy of DIC Asset AG aims at the continuous development of a quality-driven, high-yield, and regionally diversified portfolio. The portfolio is divided into two segments: the Commercial Portfolio (EUR 1.9 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The Co-Investments segment (EUR 0.3 billion) comprises fund investments, joint-venture investments, and interests in development projects. Own real estate management teams provide a direct service to tenants through six branch offices located at the regional hubs within the portfolio. This provides an edge in terms of market presence and expertise, and builds the foundation for maintaining and increasing the value of our 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.

Contact:
Immo von Homeyer
Head of Investor Relations & Corporate Communications
Tel +49 (0) 69 27 40 33 86
Fax +49 (0) 69 27 40 33 69
Mailto:I.vonHomeyer@dic-asset.de