DIC Asset AG: New Office Fund and Further Acquisitions

Press Release

Frankfurt, 22 July 2014

DIC Asset AG: New Office Fund and Further Acquisitions

– Launching the 3rd institutional property fund: “DIC Office Balance II”
– First office asset already purchased for EUR 32 million
– Another two acquisitions for the retail fund bring the 2014 volume of acquisitions up to EUR 60 million
– Minimum target volume for all three funds: EUR 900 million
 

DIC Asset AG (WKN A1X3XX / ISIN DE000A1X3XX4) just launched its third institutional real estate fund (open-ended special AIF), “DIC Office Balance II.” The fund will commit itself in office properties in Germany, focusing on core property occupied on long-term leases and located in conurbations, metro areas or regional business hubs. The fund’s target volume will initially be EUR 200 million, though it may be stocked up at a later point in time if required.

The fund will be created specifically for two clients: SV SparkassenVersicherung, Stuttgart, and Helaba Invest KAGmbH, Frankfurt, for several institutional investors. DIC Asset AG will acquire a stake of around five percent in its own right, while also handling the asset management and property management as well as the property acquisitions and sales. As with the other funds, IntReal International Real Estate Kapitalverwaltungsgesellschaft mbH, Hamburg, will serve as investment service company (“Service KVG”).

The fund launch coincided with the first property investment. The new fund acquired the office property “Barbarossa Center” with some retail units located in Cologne from an international institutional investor for approximately EUR 32 million. The high-rise on Barbarossaplatz, 60 metres tall, straddles a superb downtown location and is highly visible. Originally built in 1972, it was redeveloped and modernised in 2002 and 2013. It extends over 13,300 sqm of rental space across 19 floors. The building is fully occupied by altogether nine tenants.

On top of that, DIC Asset AG bought another two retail properties for approximately EUR 27 million that are earmarked for the “DIC HighStreet Balance” institutional fund. Both of these assets – one located in Düren, the other in Wuppertal – have a rental space of around 4,000 sqm, are situated in prime high street locations and are almost entirely let on long-term leases to blue-chip tenants Peek & Cloppenburg and Rossmann, respectively. This brings DIC Asset AG’s volume of acquisitions up to approximately EUR 60 million for the ongoing year.

The transactions were facilitated by the estate agencies JLL, CITYJUNG and EKP-Projekt.
 

About the Fund Business of DIC:

Since 2010, DIC has launched three institutional funds (as open-ended special AIF): an institutional fund for retail property, “DIC HighStreet Balance,” and two institutional funds for office property, “DIC Office Balance I” and “DIC Office Balance II” Fundraising for the first two institutional funds (now at a combined total of approximately EUR 520 million) has already achieved the 75-percent mark of the target volume (at least around EUR 700 million). The third institutional fund just launched, DIC Office Balance II, brings the minimum target volume up to approximately EUR 900 million.

As a matter of principle, DIC Asset always acquires a significant interest in the funds, acting as co-investor while also contributing property and investment expertise as service provider. Institutional investors committed in these funds include mainly pension funds, foundations, insurance companies, and family offices. The investor pool of DIC Asset AG has thus been expanded to include business partners with a long-term horizon.
 

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. The company has a total of around 250 real property assets worth approximately EUR 3.4 billion under management. 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 2.2 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The “Co-Investment” segment (EUR 0.3 billion pro rata) pools fund investments, joint venture investments, and investments in project developments. Own real estate management teams provide a direct service to tenants through six branch offices located at the regional hubs within the portfolio. This kind of market presence and expertise creates the basis for preserving and enhancing our earnings and real estate values. 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:

Immo von Homeyer
Neue Mainzer Strasse 20 –  MainTor
D-60311 Frankfurt am Main
Phone +49-69-274033-1240
Fax +49-69-274033-9399
i.vonhomeyer@dic-asset.de