DIC Asset Reaches Transaction Record of over EUR 1.8 billion – GEG is Going to Manage the Acquired ‘Stadthaus’ Building in Cologne for Institutional Investors

Press Release

DIC Asset Reaches Transaction Record of over EUR 1.8 billion – GEG is Going to Manage the Acquired “Stadthaus” Building in Cologne for Institutional Investors

• Fully occupied landmark property with over 100,000 sqm of lettable area bought for around EUR 500 million
• Current acquisition volume in 2019 exceeds full-year target and reaches new record level of c. EUR 1.8 billion
• Assets under management in the Institutional Business grow to more than EUR 6 billion

Frankfurt am Main, 02 December 2019. DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany’s leading listed property companies, just had the sale and purchase agreement for the “Stadthaus” building in Cologne notarised via the Institutional Business division of its subsidiary GEG German Estate Group AG. The purchase price (TIC) was around EUR 500 million. The property was purchased within the framework of a club deal on behalf of five institutional investors, namely Gothaer Asset Management AG, Versicherungskammer Bayern, the insurance group DEVK, one of Lufthansa’s pension funds, and the Brandenburg retirement pension system for doctors. The property is sold by the Korean investor Mirae Asset Global Investments.

Following the transfer of possession, rights and obligations, which is expected to take place at the beginning of 2020, the assets under management (AuM) in the Institutional Business segment will total more than EUR 6 billion at the start of 2020. The landmark property, which occupies a superior micro-location in direct proximity to the Lanxess Arena and to the high-speed railway station in the Deutz district of Cologne, has a lettable area or more than 100,000 sqm and around 2,900 parking spots overall. It is fully occupied by the City of Cologne on a long-term lease. The office units are spread across 16 floors in two building sections, housing five of Cologne’s nine administration units. The average remaining lease term of the property is currently around nine years.

The buyer side was advised by CMS in Frankfurt (legal and taxes) and CBRE (technical). Mirae was advised by Ashurst in Frankfurt (legal and taxes). The transaction itself was brokered by JLL.

“With this transaction, we are not only moving well beyond our initial acquisition target of EUR 1.3 billion, but have also demonstrated the performance efficiency of our repositioned transaction team now that the integration of GEG has been completed,” said Sonja Wärntges, CEO of DIC Asset AG, as she commented the acquisition. “The long-term mandate marks another big step on our way to our medium-term goal of having EUR 10 billion worth of assets under management. Moreover, we were able to purchase a highly attractive landmark property occupied by a triple-A tenant and distinguished by stable long-term cash flows and distributions.”

In its Institutional Business division, DIC Asset AG generates regular income from property administration fees via its subsidiary GEG by taking care of the continuous asset and property management of the real estate assets under its management, by handling the real estate acquisitions and sales, and by structuring new investment vehicles for domestic and international institutional investors.

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 173 assets with a combined market value of c. EUR 7.3 billion under management (as of 30/09/2019). 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 1.8 billion in assets under management), 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 5.5 billion in assets under management), 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