DIC Asset sells real estate package worth EUR 143 million as it continues to streamline its proprietary portfolio

Press Release

DIC Asset sells real estate package worth EUR 143 million as it continues to streamline its proprietary portfolio
 

– Real estate portfolio includes 10 properties in A- and B-class cities

– Sales volume approximates EUR 143 million

– Sale is part of the ongoing portfolio optimisation

– Transaction brings revenues already up to two-thirds mark of 2017 year-end target

Frankfurt/Main, 04 April 2017. Frankfurt-based company DIC Asset AG (German securities code number WKN A1X3XX / ISIN DE000A1X3XX4) just announced the sale of a commercial real estate portfolio worth around EUR 143 million, consisting of ten properties that are located in German A and B-class cities. The portfolio was bought by Cording Real Estate Group GmbH on behalf of an institutional investor. The transfer of possession, rights and obligations is expected for the second quarter of the year. BNP Paribas Real Estate and CMS Hasche Sigle assisted DIC in the transaction in an advisory role.

“The continuous optimisation and ongoing development of our Commercial Portfolio represents one of our strategic core objectives. The purpose of this forward-looking sale in a favourable market environment is to streamline our portfolio in a sustainable manner. On top of that, we already covered two thirds of the way toward the sales target we announced for 2017 with this transaction,” said Aydin Karaduman, CEO of DIC Asset AG.

The assets sold, which add up to a gross lettable area of 100,000 square metres, represent mainly single-tenant office properties in German A- and B-class cities such as Hamburg, Cologne, Mannheim and Erlangen. The annualised rental income generated by the sold properties approximates EUR 11 million.
 

About DIC Asset AG:
Established in 2002, DIC Asset AG, with registered offices in Frankfurt am Main, is a real estate company with investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. The Company’s investment strategy is geared to the continued development of a high-quality, highly profitable, and regionally diversified portfolio. The company has around 200 real estate assets under management with an aggregate market value of EUR 3.5 billion. The real estate portfolio is structured in two segments: the “Commercial Portfolio” (EUR 2.0 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The “Co-Investments” segment (EUR 1.5 billion) comprises fund investments (pro-rata share of EUR 1.2 billion), joint-venture investments, and interests in development projects. In-house real estate management teams provide a direct service to tenants, working out of six different locations in each of the portfolio focus regions. This kind of market presence and expertise creates the basis for preserving and enhancing our earnings and real estate values. 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.