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DIC Asset AG: Property acquisitions of EUR 78 million to boost FFO growth

 ​DGAP-News DIC Assets​

DIC Asset AG / Key word(s): Real Estate21.09.2011 / 08:26---------------------------------------------------------------------DIC Asset AG (WKN 509840/ ISIN DE0005098404) has now acquired three fullylet commercial properties with an investment volume of some EUR 78 millionin Duisburg, Karlsruhe and Leipzig. The acquisition is the result of twoexclusive transaction implementations with international investors. Aspreviously announced, DIC Asset AG is consequently expanding its portfoliowith three attractive, modern properties, which are let to well-known,highly creditworthy companies. As a result, some of the funds raised by thecapital increase and the corporate bond have been invested following thisfurther step on the course for growth.In the first transaction, DIC Asset acquired the retail property'Marktforum' in Duisburg's district Rheinhausen for around EUR 16 million;the object contains rental space of some 10,000 sqm. EDEKA as the generaltenant with a term of 12 years comes along with further renowned tenantslike dm, Deichmann and Takko. The purchase was effected at an attractiveinitial rental yield to the purchase price of around 8 per cent and isexpected to be reflected in the income statement in the fourth quarter of2011 with the transfer of ownership. The FFO contribution in 2012 willamount to more than EUR 0.7 million. The company, together with a regionalfinancial institution who helped finance the deal, was able to exploit thecurrently very favourable financing window and secure a long-term interestrate of less than 4 per cent on a loan-to-value (LtV) of around 65 percent.The second transaction involves two core office properties offering rentalspace of 40,000 sqm for some EUR 62 million in Karlsruhe and Leipzig. Withan average term of around eight years the properties are let on a long-termbasis to several major international insurance and service companies whichhave a high degree of creditworthiness. The two office properties wereacquired for additional growth of the first real estate special fund 'DICOffice Balance I', in which DIC Asset AG holds a 20 per cent stake. Theplanned distribution yield from the two properties is in the target rangeof the special fund of around six percent. In accordance with the GermanInvestment Act, borrowing for the two special fund properties amounts toless than 50 per cent of the purchase price and was provided by a GermanLandesbank.The transactions were brokered by Jones Lang LaSalle (Duisburg property),WhiteWater (Karlsruhe property) and BNP Paribas Real Estate (Leipzigproperty).Ulrich Höller, CEO of DIC Asset AG: 'With the two core properties inKarlsruhe and Leipzig, DIC Asset AG is continuing the strategic expansionof its fund business. The Marktforum in Duisburg with its long-term tenancyagreements and a diverse user structure plus the highly attractive rentalyield is a good addition to our portfolio'.About DIC Asset AG:Established in 2002, DIC Asset AG, with registered offices inFrankfurt/Main, is a real estate company with a dedicated investment focuson commercial real estate in Germany, pursuing a return-oriented investmentpolicy. Real estate assets under management currently amount to approx. EUR3.2 billion, comprising around 280 properties. The portfolio is dividedinto three segments: the 'Core plus' portfolio includes the proprietaryportfolio held on a long-term basis and offering stable, attractive rentalyields. The 'Value-added' portfolio contains real estate with promisingperformance potential over the medium term. The 'Co-investments' segmentportfolio comprises minority stakes in supplementary real estate sectors,including opportunistic investments, project development as well as theFunds business area, where it is invested in core properties. DIC Asset AGhas been included in the SDAX(R) segment of the Frankfurt Stock Exchangesince June 2006. The Company's shares are also included in the EPRA index,which tracks the performance of the most important European real estatecompanies.Further information about DIC Asset is available on the Internet of Corporate News---------------------------------------------------------------------21.09.2011 Dissemination of a Corporate News, transmitted by DGAP - acompany of EquityStory AG.The issuer is solely responsible for the content of this announcement.DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at and    English                                                Company:     DIC Asset AG                                                        Eschersheimer Landstr. 223                                          60320 Frankfurt                                                     Germany                                                Phone:       +49 69 9454858-0                                       Fax:         +49 69 9454858-99                                      E-mail:                                      Internet:                                       ISIN:        DE0005098404                                           WKN:         509840                                                 Listed:      Regulierter Markt in Frankfurt (Prime Standard);                    Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,               München, Stuttgart                                       End of News    DGAP News-Service  ---------------------------------------------------------------------  139914 21.09.2011