10/28/2019 | Press release | Distributed by Public on 10/28/2019 01:15
DIC Asset Increases Acquisition Total to EUR 1.1 Billion - Three New Assets Acquired for EUR 106 Million
Frankfurt am Main, 28 October 2019. Today, DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany's leading listed property companies, announced the acquisition of three new assets for approximately EUR 106 million (TIC), earmarked for its business units Commercial Portfolio and Institutional Business (via GEG). With these latest acquisitions, DIC Asset has brought its acquisition total to date up to approximately EUR 1.1 billion and is right on course to achieve its stated year-end target of EUR 1.3 billion.
'The acquisition of three attractive properties for our two business divisions demonstrates the strong transaction performance of our team. For the institutional client business of GEG, we identified assets perfectly complementing the portfolio while simultaneously securing the first property for a new office fund in the 'LaVie' property in Düsseldorf. The grocery retail property in Stockstadt, which has excellent fundamentals, will help us generate stable and long-term rental income from our diversified proprietary portfolio,' commented Thomas Gerstmann, Head of Investment at DIC Asset AG.
Commercial Portfolio - Acquisition of a Neighbourhood Retail Centre with Lease Term (WALT) of more than 11 Years
For its proprietary portfolio (Commercial Portfolio), DIC acts as owner and property asset holder, generating steady cash flows from stable long-term rent revenues and from the value optimisation of its properties.
The neighbourhood retail centre acquired for c. EUR 25 million (TIC) in Stockstadt am Main has a lettable area of around 9,100 sqm. Its head tenants are grocery multiple retailer Rewe and an outlet of the Drogerie Müller drugstore chain, which together occupy about 90% of the floor area on long-term leases. At this time, the average remaining lease term (WALT) is more than 11 years, generating an annual rental income of approximately EUR 1.4 million. This translates into a gross purchase yield of around 6.1% relative to the net purchase price. The transfer into the Commercial Portfolio is expected before the end of the year. The sale of the retail warehouse park was brokered by the LÜHRMANN estate agency.
Institutional Business - Two Acquisitions Worth c. EUR 81 Million Increase Real Estate Assets under Management
In the Institutional Business division (EUR 5.3 billion in assets under management), DIC Asset AG generates income via its subsidiary GEG German Estate Group through the structuring and managing of investment vehicles with attractive dividend yields for national and international institutional investors. Most recently, another two assets were acquired for c. EUR 81 million.
On behalf of the GEG Public Infrastructure I fund, a fully occupied office property in Hamburg with a lettable area of around 11,100 sqm was bought that houses the headquarters of the renowned distance-learning institute ILS (Institute for Learning Systems). The seller was an investor group represented by MPC Capital, a Hamburg-based asset and investment manager. The conveniently accessible property on Doberaner Weg in Hamburg's Rahlstedt district accommodates training facilities and class rooms and a cafeteria in its two building sections. The average remaining lease term is around 13.5 years as of 30 September 2019. The transfer of ownership is expected to take place in late November.
Another acquisition, involving the modern multi-tenant office building 'LaVie' in Düsseldorf, is the first property earmarked for a new office investment fund that the company plans to set up by the end of the year. The property, raised in 2001, comprises two building sections and is located in the Unterrath district close to Düsseldorf Airport. Roughly 90% of the lettable area of around 12,900 sqm are currently occupied by 15 tenants.
Advisory for the transaction in Hamburg was provided by CMS in Frankfurt (legal and taxes) as well as by CBRE (technical). The transaction was brokered by Colliers International Hamburg.
About DIC Asset AG:
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 175 assets with a combined market value of c. EUR 7.1 billion under management (as of 30/06/2019). 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 5.3 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.