RFR Holding Acquires Bienenkorbhaus from DIC Asset AG

RFR Holding Acquires Bienenkorbhaus from DIC Asset AG

DIC Asset AG (WKN 509840/ ISIN DE0005098404) just sold the renowned Bienenkorbhaus on Frankfurt's shopping boulevard Zeil for a total transaction volume of approximately 75 million Euros to RFR Holding GmbH within the framework of a share deal (shares of the property vehicle being acquired).

The lettable commercial floor area of more than 11,000 sqm is currently let to over 95 per cent in an attractive mix of use types, including retail areas (3,500 sqm) and office areas (7,500 sqm). Main tenants are the flagship store of footwear multiple Ludwig Görtz and Frankfurter Sparkasse (Frankfurt savings bank).

In the time since it reopened in 2009, Bienenkorbhaus generated attractive rent revenues for DIC Asset that were boosted by the substantially increased occupancy rate. DIC Asset AG has successfully brought another portfolio investment in downtown Frankfurt to a profitable conclusion, thereby once again demonstrating its competence in the areas of redevelopment and asset management. The sale of Bienenkorbhaus takes place both above the DIC's book value and above the market value recently determined in late 2011.

The sale will help DIC Asset AG to roll back its debt ratio on a major scale and inversely to increase its equity ratio yet further. With the transfer of ownership scheduled for the end of 2012, approximately 50 million Euros will be repaid to the underwriting bank.

In this acquisition Deutsche Pfandbriefbank AG is financing partner of RFR.

Said Ulrich Höller, CEO of DIC Asset AG: 'DIC will achieve a significant earnings contribution for 2012 through this sale and realise another major step toward a stronger equity position in the medium term by repaying the bank debt.'

Said Dr. Alexander Koblischek, Managing Director of RFR Management: 'We are very pleased that the acquisition of Bienenkorbhaus will permit us to add to our portfolio another building that is closely associated with Frankfurt's history and located on Germany's most frequented shopping boulevard.'

Timeline of the Bienenkorbhaus investment:

– Prior history: In 1954, Frankfurter Sparkasse raised the twelve-storey Bienenkorbhaus as one of the first high-rises in Frankfurt am Main and opened its first branch office in the building. The building owes its name to the logo of Frankfurter Sparkasse, which in turn dates back to 1822: The building façade used to be ornamented with a ring showing a stylised beehive ('Bienenkorb' being German for 'beehive').

– Year-end 2004: DIC Asset AG acquired the renowned Bienenkorbhaus asset in a 50/50 joint venture together with Morgan Stanley Real Estate Fund (MSREF) as part of the real estate portfolio of Frankfurter Sparkasse, which includes a total of 57 properties in Frankfurt.

– April 2009: Following comprehensive revitalisation measures that succeeded in skilfully preserving the 1950s architecture while modernising the edifice at the same time, the new Bienenkorbhaus building reopened with an occupancy rate of 76 per cent. Occupied by new tenants, it enhances the attractiveness of Zeil for adjacent venues, visitors and shoppers, and marks the entrance to the high-street stretch of Germany's best-known and fastest-selling shopping boulevard. Head tenants include Ludwig Görtz GmbH, which opened a large flagship store in the new annex, and Frankfurter Sparkasse, which opened its largest and most modern savings bank branch within the city limits. Other tenants in the complex include the health insurance company DAK, numerous doctors' offices, as well as legal offices and consultancy firms.

– October 2011: DIC Asset AG becomes the sole owner of Bienenkorbhaus after taking over the shares of Morgan Stanley Real Estate Fund.

– October 2012: Asset is sold to RFR Holding GmbH.

About RFR Holding GmbH

RFR Holding GmbH is a member company of the RFR Group of the German-born real estate investors Aby Rosen and Michael Fuchs. Over the past 25 years, the company assembled a unique portfolio of properties in the United States. Architectural history classics such as the Seagram Building in New York by Mies van der Rohe, or the famous Lever House by Skidmore, Owings & Merrill, are complemented by modern office and commercial buildings, apartment blocks, luxury condominiums and trendy hotels in prime locations. Today, RFR Group holds real estate assets worth approximately 10 billion USD in the United States and Germany. Seated in Frankfurt am Main, RFR Management GmbH is responsible for the property and asset management of RFR Group in Germany. For more information, go to www.rfr-holding.com.

About DIC Asset AG:

Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with a dedicated investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. Real estate assets under management amount to approx. EUR 3.3 billion, comprising around 270 properties, of which EUR 2.2 billion is carried on DIC Asset AG's statement of the balance sheet. The investment strategy of DIC Asset AG aims at the continuous development of a quality-driven, high-yield, and regionally diversified portfolio. The portfolio is divided into two segments: The 'Commercial Portfolio' (EUR 1.9 billion) includes existing properties let on long-term leases and returning attractive rental yields. The 'Co-Investment' segment (EUR 0.3 billion) pools fund investments, joint venture investments, and investments in project developments. Own real estate management teams provide a direct service to tenants through six branch offices located at the regional hubs within the portfolio. This provides an edge in terms of market presence and expertise, and builds the foundation for maintaining and increasing the value of real estate assets. 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.

For more details on DIC Asset AG, please visit us on the Internet at www.dic-asset.de.