Javascript is disabled or not supported. Please enable JavaScript to display the website correctly.
If there are any problems, please contact us!

DIC Asset AG realises early refinancing of the Commercial Portfolio

DIC Asset AG / Key word(s): Financing14-Dec-2016 / 18:34 CET/CESTDisclosure of an inside information acc. to Article 17 MAR, transmitted byDGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.---------------------------------------------------------------------------Ad hoc-announcementpursuant to Article 17 of the Market Abuse RegulationDIC Asset AG realises early refinancing of the Commercial PortfolioFrankfurt/Main, December 14th 2016. DIC Asset AG (WKN A1X3XX / ISINDE000A1X3XX4) announced today the signing of a credit arrangement for EUR960 million for the Commercial Portfolio. The new loan with an overall termof seven years will be used to prematurely repay the financing arrangementssigned with several banks for the Commercial Portfolio. The new financingarrangement was underwritten by Deutsche Hypothekenbank AG (EUR 510million) as joint lead manager as well as by Berlin Hyp AG (EUR 250million) and HSH Nordbank AG (EUR 200 million). For Deutsche HypothekenbankAG it is the largest financing transaction ever. Within the framework ofits business plan, the new credit arrangement gives DIC Asset AG a highdegree of planning security and already takes into account the transactionvolumes planned with regards to the continuous optimisation of theCommercial Portfolio in the years to come. Jörg H. Becker Bögner, Henseland Partners provided legal counsel to DIC Asset AG for the transaction.Substantial reduction of financing costs down to circa 1.7 percentThe newly negotiated credit arrangement lowers the interest rate on theCommercial Portfolio's bank loans to circa 1.7 percent, a drop of 170 basispoints compared to the previous funding conditions. The amortisation rateadditionally falls from around 3 percent to approximately 1 percent p.a.This puts DIC Asset AG at the head of its field of competitors. Theexisting financing arrangements are expected to be almost entirely repaidin January 2017. The premature repayment of the old debt will triggercertain one-off expenses not recognised in the FFO, including but notlimited to the payment of early termination penalties of approximately EUR59 million. For the 2016 financial year, DIC Asset AG therefore anticipatesa one-time negative consolidated income after tax which will amount toapproximately EUR 35 million. The company intends to disburse, as planned,an attractive dividend on the level of previous years for the 2016financial year.Increased FFO and cash flow as of the 2017 financial yearClosing these transactions will be instrumental in strengthening the futurefinancial and earnings position of DIC Asset AG. The estimated cash flowwill increase by up to circa EUR 40 million p.a. ceteris paribus in 2017.It also anticipates interest expense savings of up to EUR 20 million peryear. With the further planned development of the Commercial Portfolio andFund Business divisions taken into account, the company projects FFObetween EUR 55 million and EUR 60 million in the 2017 financial year.Press contactDIC Asset AGAndre ZahltenHead of Corporate CommunicationsNeue Mainzer Strasse 20 - MainTorD-60311 Frankfurt am MainPhone +49 69 9454858-1435Fax +49 69 9454858-9199pr@dic-asset.deInvestor RelationsDIC Asset AGPeer SchlinkmannHead of Investor RelationsNeue Mainzer Strasse 20 - MainTorD-60311 Frankfurt am MainPhone +49 69 9454858-1221Fax +49 69 9454858-9399P.Schlinkmann@dic-asset.deAbout DIC Asset AG:Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with an investment focus on commercial realestate in Germany, pursuing a return-oriented investment policy. TheCompany's investment strategy is geared to the continued development of ahigh-quality, highly profitable and regionally diversified portfolio. Realestate assets under management comprise circa 210 properties with anaggregate market value of EUR 3.2 billion. The real estate portfolio isstructured in two segments: the Commercial Portfolio (EUR 1.7 billion)comprises existing properties with long-term rental contracts generatingattractive rental yields. The Co-Investments segment (EUR 1.5 billion)comprises fund investments (accounting for a share of EUR 1.2 billion),joint-venture investments, and interests in development projects. In-housereal estate management teams provide a direct service to tenants, workingout of six different locations in each of the portfolio focus regions. Thismarket presence and expertise creates the basis for preserving andenhancing earnings and real estate values. DIC Asset AG has been includedin the SDAX(R) segment of the Frankfurt Stock Exchange since June 2006. TheCompany's shares are also included in the EPRA index, which tracks theperformance of the most important European real estate companies.---------------------------------------------------------------------------14-Dec-2016 CET/CEST The DGAP Distribution Services include RegulatoryAnnouncements, Financial/Corporate News and Press Releases.Archive at   Language:    English   Company:     DIC Asset AG                Neue Mainzer Straße 20 * MainTor                60311 Frankfurt am Main                Germany   Phone:       +49 69 9454858-1221   Fax:         +49 69 9454858-9399   E-mail:   Internet:   ISIN:        DE000A1X3XX4, DE000A1TNJ22, DE000A12T648   WKN:         A1X3XX, A1TNJ2, A12T64   Indices:     S-DAX   Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated                Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,                Munich, Stuttgart, Tradegate Exchange     End of Announcement    DGAP News Service