07/03/2019 | Press release | Distributed by Public on 07/02/2019 23:51
DIC Asset AG: Acquisition of GEG Concluded - Further Premium Properties in Munich and Frankfurt Purchased in a Volume of EUR 140 Million
DIC Asset AG ('DIC') has acquired GEG German Estate Group ('GEG') with a contract dated 05 June 2019. The transaction has now been finalised as planned.
Meanwhile, GEG further expanded its portfolios of high-end assets in central locations in recent days by acquiring the Palazzo Fiorentino in Frankfurt's Sachsenhausen district and the Fashion Mall Munich in the Parkstadt Schwabing quarter of Munich.
'With the closing, we cleared another important milestone in the strategic positioning of our company and will swiftly proceed with the implementation of the merger. The acquisition of another two premium properties in the past days is a reassuring next step toward the recoverable expansion of our assets under management (AuM),' says Sonja Wärntges, CEO of DIC.
GEG acquired the Palazzo Fiorentino, which provides nearly 11,000 sqm of rental office accommodation and 102 underground parking spots, within the framework of a bidding competition in late June. The total investment volume equals c. EUR 50 million. GEG purchased the asset for its 'GEG Deutschland Value I' manage-to-core fund. The office units in the property are fully let to Bankhaus Metzler, a private banking company.
Palazzo Fiorentino was raised in 2001. It comprises a ground floor and six upper floors, while the roof terrace circling the top floor makes the building particularly attractive. The property can be divided into several self-sufficient rental units with separate entrances. Other highlights include the fact that it lies within walking distance of the promenade along bank of the River Main, the ECB building and the gastronomic amenities of Sachsenhausen, as well as excellent transport links and superior visibility.
In a virtually parallel move, GEG acquired the Fashion Mall Munich in the Parkstadt Schwabing quarter via an off-market transaction. The fully let property has a total rental space of around 17,000 sqm and around 340 parking spots. The total investment volume amounts to c. EUR 90 million.
With its established use concept as a fashion and order centre for B2B clients, the Fashion Mall Munich benefits from a stable and diversified tenancy situation. Spread across two separate buildings, total of 31 tenants from the fashion industry, including labels such as Max Mara, Marc Cain, Sportalm, Palmers and Esprit, present their fashion collections for the next season to their clients.
The ensemble of buildings features modern and flexible rental units. The central location of Parkstadt Schwabing provides optimal infrastructure connections to downtown Munich as well as to the central railway station and airport.
About DIC Asset AG:
DIC is one of Germany's leading listed property companies, and specialises in commercial real estate. With around 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 178 assets with a combined market value of c. EUR 7.1 billion under management. DIC uses a hybrid business model as it focuses on its business divisions Commercial Portfolio and Institutional Business. Taking an active asset management approach, DIC employs its proprietary, integrated real estate management platform to raise capital appreciation potential in its business divisions and to boost its revenues. In its Commercial Portfolio division (EUR 1.8 billion in assets under management), DIC 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. The Institutional Business division (EUR 5.3 billion in assets under management) generates its revenues by acting as issuer and manager of special real estate funds, individual mandated and club deals for institutional investors. (As of: 30/06/2019, incl. GEG).
DIC has acquired GEG with a contract dated 05 June 2019. The transaction has now been concluded. DIC switched its segment reporting to its two pillars DIC Commercial Portfolio and DIC Institutional Business.
DIC has been listed in the SDAX® 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.