DIC Asset AG Starts its Sixth Open-Ended Special AIF

Press Release

DIC Asset AG Starts its Sixth Open-Ended Special AIF

– “Retail Balance I” launched with start-up portfolio

– Focus on non-discretionary retail centres and retail warehouse parks in
German metro regions

– Investment volume of c. EUR 250 million targeted

Frankfurt/Main, 02 October 2017. DIC Asset AG (WKN A1X3XX / ISIN DE000A1X3XX4) just launched its sixth special AIF. The new fund, named “Retail Balance I”, invests in core and core-plus retail real estate in German metro regions and, after “Highstreet Balance”, is the second retail property fund initiated by the company. The target investment volume is approximately EUR 250 million. The start-up portfolio of three non-discretionary retail centres and retail warehouse parks in a combined value of EUR 190 million was added to the fund in late September, using the corresponding amount of equity capital. The fund is planned to have an annual target return of around 5 percent and a lifetime of eight to twelve years.

“Demand among end consumers for non-discretionary retailers and retail warehouse parks that stock groceries and convenience goods remains as strong as ever despite the online business, and this in turn generates a stable demand for lettable floor space and a steady flow of rent revenues. We are convinced that Retail Balance I, the way we developed it, is an optimal product that will generate a consistent and sound dividend yield,” said Dirk Hasselbring, Member of the Management Board and Head of Fund Business at DIC Asset AG.

The start-up portfolio of “Retail Balance I” consists of three non-discretionary retail centres and retail warehouse parks located in Hamburg-Harburg, Hamburg-Bergedorf and Berlin, respectively, and has a volume of EUR 190 million. The gross lettable area of the fully occupied properties adds up to around 60,000 square metres. All three of the properties were acquired by DIC and had so far been held in the company’s Warehousing while already earmarked for the new fund. With the addition of the properties to the pool of segregated assets, the fund starts earning the predicted cash-flow return from day one.

At the moment, DIC is active on the market with six open-ended special AIF, and is steadily expanding its fund volume. The company has consistently topped its planned target returns so far. In addition to four investment funds in the “Office Balance” series which invest in office properties in German metro regions as well as in Class A and Class B cities, the “Retail Balance I” is already the second retail property fund – after “Highstreet Balance” – that the company put on the market. New products are already in the planning stage.

For more details on DIC Asset AG, visit the company’s homepage at www.dic-asset.de.

About DIC Asset AG:
DIC Asset AG is one of Germany’s leading listed property companies, and specialises in commercial real estate With around 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 around 180 assets with a combined market value of c. EUR 3.4 billion under management. DIC uses a hybrid business model to manage its business divisions Commercial Portfolio, Funds and Other Investments. Taking an active asset management approach, DIC employs its proprietary, integrated real estate management platform to raise capital appreciation potential in its business divisions and to boost its revenues.

In its Commercial Portfolio division (EUR 1.7 billion in assets under management), DIC 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. The Funds division (EUR 1.3 billion in assets under management) generates its revenues by acting as issuer and manager of special real estate funds for institutional investors. Gathered in the business unit Other Investments (EUR 0.4 billion in assets under management) are joint venture investments, equity investments in property developments, strategic financial investments, and the management of properties in which the company holds no equity stakes.

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.