DIC Asset AG Signs Leases for about 20,000 sqm – Integrated Business Model and High Level of Liquidity Open up Attractive Opportunities

Press Release

DIC Asset AG Signs Leases for about 20,000 sqm – Integrated Business Model and High Level of Liquidity Open up Attractive Opportunities

• Dynamic performance driven by regional presence and focus on portfolio properties
• Long-term renewal of lease agreements in Frankfurt and Karlsruhe
• COVID-19 distancing rules and structural effects boost demand in specific segments and locations

Frankfurt am Main, 02 June 2020. DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany’s leading listed property companies, is convinced of its ability to fully leverage its forces, specifically in the current macroeconomic situation, and to keep expanding its business. This is demonstrated not least by the long-term renewals of two premium lease agreement that were just signed-in parts on higher rental terms-for large office units with a total floor area of around 20,000 sqm in the Proprietary Portfolio and Institutional Business segments, respectively.

“Operationally speaking, we remain on course for success even during the coronavirus crisis by being professionally positioned and delivering an outstanding team performance. Once again, our two-pillar strategy of maintaining a proprietary portfolio (Commercial Portfolio) while also providing asset and property management services to third parties (Institutional Business) is proving successful. Our high level of liquidity gives us the backing and the flexibility we need in order to take advantage of opportunities present specifically in the current market situation,” commented Sonja Wärntges, the CEO of DIC Asset AG.

The Coronavirus crisis changes certain parameters and poses challenges. At the same time, it is becoming obvious that the demand for rental spaces in several segments-such as the office space required per workstation-is likely to increase rather than decline as a result of social distancing rules, precautionary measures and a general phase-out of simple open-plan offices. Especially the interest in adequately upgraded existing properties in affordable secondary locations of prime cities and the demand for prime locations in regional centres appears to be developing promisingly. The situation is currently and structurally complemented by a noticeable demand dynamic in the logistics sector, where the focus is on a combination of suitable floor places and smart service packs.

Due to its business model, which includes a proprietary portfolio, the management of real estate on third-party mandates and portfolio development competence, DIC Asset AG is superbly positioned to cope with the situation. The company’s proprietary regional presence and the competence bundled in its in-house management and development platform combine with the company’s high level of liquidity to create optimal parameters for continuing its dynamic endogenous and exogenous growth, said Sonja Wärntges as she explained the strategic orientation of the company’s business.

The latest evidence for the company’s sustained momentum consists of two long-term lease renewals.

One lease agreement involved around 5,000 sqm of office space that Chemetall GmbH, a subsidiary of BASF AG, rented in the “City West” locality of Frankfurt, which that was now renewed for roughly another 10 years. The fully occupied multi-tenant property on Insterburger Strasse is part of DIC’s proprietary holdings (Commercial Portfolio) and has already been occupied by the main tenant Chemetall GmbH since 2005.

The other agreement involved a 10-year lease renewal for around 15,000 sqm at an office property that is managed on a third-party mandate by the Institutional Business segment. The premises at a property in Karlsruhe that is held by the “DIC Office Balance I” special fund are occupied by an internationally active insurance company. As a result, this asset, too, continues to be fully occupied.

About DIC Asset AG:

With more than 20 years of experience on the German real estate market, the company maintains a regional footprint on all major German markets through six branch offices, and has 186 assets with a combined market value of c. EUR 8.4 billion under management (as of 31/03/2020).

Taking an active asset management approach, DIC Asset AG employs its proprietary, integrated real estate management platform to raise capital appreciation potential company-wide and to boost its revenues.

In its Commercial Portfolio division (EUR 1.9 billion in assets under management, as of 31/03/2020), DIC Asset AG acts as proprietor and property asset holder, and thus generates revenues both from the management of the assets and through the value optimisation of its own real estate portfolio.

In its Institutional Business division (EUR 6.5 billion in assets under management, as of 31/03/2020), which operates under the name GEG German Estate Group, DIC Asset AG generates income from structuring and managing investment vehicles with attractive dividend yields for national and international institutional investors.

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

IR Contact DIC Asset AG:
Peer Schlinkmann
Head of Investor Relations & Corporate Communications
Neue Mainzer Strasse 20
D-60311 Frankfurt am Main
Phone +49 69 9454858-1492
ir@dic-asset.de