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DIC Asset: complete takeover of a portfolio worth EUR 190 million

 ​DGAP-News DIC Assets​

DIC Asset AG / Key word(s): Miscellaneous/Real Estate18.10.2011 / 07:31---------------------------------------------------------------------DIC Asset: complete takeover of a portfolio worth EUR 190 million* Portfolio growth target for 2011 already achieved* Transaction significantly supports FFO growth* Simplification of operative structuresWith economic effect as of 1 October 2011, DIC Asset AG (WKN 509840/ ISINDE0005098404) took over the 50 per cent stake in three joint venturespreviously held by funds advised by Morgan Stanley Real Estate Investing.As a result, DIC Asset has become the sole owner of an attractive portfoliowith a market value of some EUR 190 million consisting of around 20 officeproperties in Berlin and Frankfurt. The average initial rental yield inrelation to the purchase price is 7.7 per cent.The acquisition from the company's long-standing project partner has beeneffected via a share deal involving low transaction costs. A meaningfuldiscount on the portfolio's existing net asset value (NAV) was also agreedon. Furthermore, the transaction allows DIC Asset to simplify its portfolioand asset management structures in the Core plus and Value added segments.DIC Asset will assume the long-term financing of the previous jointventures with an average loan-to-value (LtV) of some 70 per cent and anattractive average interest rate of 3.2 per cent, and will continue it onan unchanged basis.DIC Asset's rental income will increase by some EUR 7 million year-on-year;FFO (operating income) will increase by some EUR 3.5 million over the sameperiod. FFO contribution for the fourth quarter of 2011 thus amounts toaround EUR 0.9 million.As a result of the current takeover, DIC Asset has already achieved itsplanned portfolio growth of EUR 200-300 million for 2011: with the realestate purchases in March (EUR 108 million) and September (EUR 78 million),the portfolio increase this year already totals over EUR 280 million.The portfolio encompasses a lettable area of some 90,000 sqm. The majorityof rental income results from office space (some 72 per cent) and some 17per cent from retail space. The properties from the Core plus and Valueadded segments benefit from a diversified tenant structure with tenants ofhigh creditworthiness. The existing rental agreements have an average termof 5.6 years, with the occupancy rate at around 90 per cent. Consequently,the transaction will further improve the structure of DIC Asset's totalportfolio.Ulrich Höller, CEO of DIC Asset AG: 'We have seized the opportunity to takeover all of our partner's shares in this attractive portfolio, with whichwe have been familiar for years. With this transaction, we reinforce ourcash flow and simplify operative structures.'For more information about DIC Asset AG, visit www.dic-asset.de.About DIC Asset AG:Established in 2002, DIC Asset AG, with registered office in Frankfurt amMain, is a real estate company that focuses exclusively on investing inGerman commercial real estate and maximising earnings from its investments.The real estate portfolio amounts to approximately EUR 3.2 billion witharound 280 properties. The portfolio is divided into three segments. TheCore plus portfolio includes the proprietary portfolio held on a long-termbasis and offering stable, attractive rental yields. The Value-Addedportfolio contains real estate with promising performance potential overthe medium term; while the Co-Investments portfolio comprises minorityinvestments in other real estate segments. This includes opportunisticinvestments, project developments and the Funds business segment, whichinvests in Core real estate. DIC Asset AG has been listed on the SDAX indexsince June 2006 and is represented in the international EPRA Index for themost important real estate companies in Europe.End of Corporate News---------------------------------------------------------------------18.10.2011 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 www.dgap-medientreff.de and www.dgap.de---------------------------------------------------------------------Language:    English                                                Company:     DIC Asset AG                                                        Eschersheimer Landstr. 223                                          60320 Frankfurt                                                     Germany                                                Phone:       +49 69 9454858-0                                       Fax:         +49 69 9454858-99                                      E-mail:      info@dic-asset.de                                      Internet:    www.dic-asset.de                                       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  ---------------------------------------------------------------------  142547 18.10.2011