DGAP-News DIC Assets
DGAP-News: DIC Asset AG / Key word(s): Acquisition/Real Estate
Target for 2021 already achieved: Acquisitions totalling c. EUR 1.3 billion – further projects until year-end in preparation – successful year for the team of DIC Asset AG
Frankfurt am Main, 9 December 2021. DIC Asset AG (“DIC”, ISIN: DE000A1X3XX4), one of Germany’s leading listed property companies, concluded the notarisations for a total of four properties located in Cologne and Dortmund in the last days. This brings the total value of assets acquired since the start of the year up to c. EUR 1.3 billion. It also means that, as of early December, DIC has already achieved its annual acquisition target, which it had announced at the start of the year as being between EUR 1.2 and 1.8 billion for both segments.
On behalf of the so-far largest special fund in the company’s history, DIC acquired a portfolio of three core office properties in Cologne rom TPG Real Estate Partners (TREP), the dedicated real estate equity investment platform of global alternative asset firm TPG, for a combined price of c. EUR 267 million (total investment costs, TIC), thereby investing more than 80% of the funds raised. In addition, the investment team of DIC purchased a new high-end office scheme in Dortmund on behalf of the “DIC Office Balance V” special fund for c. EUR 19 million (TIC). The fund is now fully invested as a result.
“The year 2021 has already been very successful for us. My thanks go to our employees, our ‘dynamic performers’ out in the market. They stand for professionalism and trust. With their expertise and reputation, they ensure that we not only promise success, but also deliver it year after year. And we will close more transactions this year as well.,” commented Sonja Wärntges, CEO of DIC.
Details on the Properties
In Cologne’s dynamic district of Ehrenfeld, DIC acquired three established office properties that are earmarked for the largest-ever special fund in the corporate history of DIC. They are located at Josef-Lammerting-Allee 24-34, Eupener Str. 125-133 and Maarweg 149-161. The TIC for the portfolio, which has around 61,300 sqm of lettable area, approximated EUR 267 million. These core office properties are almost fully let on long-term leases to the German Institute for Federal Real Estate (BImA) and occupied by public-sector tenants. The portfolio’s weighted average lease term (WALT) equals around 8 years. All of the properties are BREEAM certified as green buildings in use. The transfer of the properties’ ownership will raise the fair market value of the vehicle to over EUR 1.1 billion. This means that more than 80% of the subscribed equity capital has already been invested. The properties are defined by their high alternative use potential, their stable long-term cashflows and their conveniently accessed locations. The up-and-coming district of Ehrenfeld is considered one of the most sought-after office locations in Cologne, providing very easy access to the inter-regional motorway network, to the local and long-haul service connections of Deutsche Bahn, and to the Cologne-Bonn Airport.
In Dortmund, DIC acquired a new-build multi-tenant property located at Phoenixseestraße 11 for c. EUR 19 million (TIC) on behalf of the “DIC Office Balance V” special fund. The investor capital raised for this fund is now fully invested as a result of this purchase. The core office property with a lettable area of around 3,900 sqm is fully let to two blue-chip tenants from the IT-consultancy sector and the building materials trade, respectively. The WALT is around 10 years. The property has modern building specifications and a flexible floor plan design. It is located in the attractive Phoenix-See submarket in Dortmund, a former industrial area once occupied by ThyssenKrupp AG. The mixed office, services and residential quarter created here is one of Germany’s largest urban development projects of recent years and benefits from a unique selling proposition within the Rhine-Ruhr metro region.
About DIC Asset AG:
DIC Asset AG is Germany’s leading listed specialist for commercial real estate with more than 20 years of experience on the real estate market and access to a broad-based network of investors. Our business is based on a regional and inter-regional real estate platform with eight offices on the ground in all major German markets. We manage 237 assets with a combined market value of c. EUR 11.4 billion on site, always close to our properties and their occupiers.
The Commercial Portfolio segment represents the proprietary real estate portfolio of DIC Asset AG. Here, we generate steady cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management, and realising gains from sales.
In the Institutional Business segment, we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment vehicles that return attractive dividend yields.
DIC Asset AG has been SDAX-listed since June 2006.
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|Company:||DIC Asset AG|
|Neue Mainzer Straße 20|
|60311 Frankfurt am Main|
|Phone:||+49 69 9454858-1492|
|Fax:||+49 69 9454858-9399|
|ISIN:||DE000A1X3XX4, DE000A12T648, DE000A2GSCV5, DE000A2NBZG9|
|WKN:||A1X3XX, A12T64, A2GSCV, A2NBZG|
|Listed:||Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange|
|EQS News ID:||1255723|
|End of News||DGAP News Service|