DIC Asset AG — M&A Activity 2011

Mar 14, 2011

News Details

Corporate | 14 March 2011 07:32

DIC Asset AG acquires retail properties for EUR 108 million

DIC Asset AG / Key word(s): Miscellaneous

14.03.2011 / 07:32

DIC Asset AG acquires retail properties for EUR 108 million

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) has acquired
two retail properties in Bremen and Chemnitz with 'Galeria Kaufhof' as the
tenant from a joint venture controlled by affiliates of AREA Property
Partners and Rida Development Corporation following an exclusive
transaction. The investment volume as part of a share deal is around EUR
108 million. With this large-scale acquisition, DIC Asset is returning as a
buyer on the investment market, as previously announced. Jones Lang LaSalle
acted as an intermediary for the transaction.

The two properties, situated in absolutely prime locations in the two city
centres, have a combined retail floor space of 49,000 sqm. The properties
are fully let. The tenancy agreements have an average term of 11.5 years.
The annual rental income of approximately EUR 7.3 million equates to a
rental yield in relation to the investment purchase price of nearly 7 per
cent.

Both properties are a sensible addition and will make a noticeable
improvement to DIC Asset AG's investment portfolio. The annual rental
yields will increase by around 6 per cent, with portfolio volumes
increasing by around 5 per cent. In addition, long-term tenancy agreements
will significantly increase the average rental term of the portfolio.

Closing, and the transfer of ownership of the two properties to DIC Asset
AG, is expected to take place in the beginning of the second quarter of
2011, meaning that the acquisition will impact on income very quickly. This
will lead to a direct FFO contribution of more than EUR 3 million this
year. Existing equity will be predominantly used for the transaction
initially. The bindingly pledged borrowed capital can be obtained gradually
up to the end of the year. Financing of this portfolio with a
highly-regarded German real-estate mortgage lender is established on a
long-term basis for up to ten years.

Ulrich Höller, CEO of DIC Asset AG: 'This transaction marks the first of a
series of steps for achieving growth. With this purchase, we are
strengthening our FFO with two fully leased properties with high quality, a
secure long-term cash flow and an above-average rental yield.'

Further information about DIC Asset AG is available online at
www.dic-asset.de.

About DIC Asset AG:
Established in 2002, DIC Asset AG, with its registered office in Frankfurt
am Main, is a real estate company with a dedicated investment focus on
investing in commercial real estate in Germany, pursuing a return-oriented
investment policy. Real estate assets amount to approximately EUR 3.2
billion with around 290 properties. The portfolio is divided into three
segments. The Core plus portfolio includes the proprietary portfolio held
on a long-term basis and offering stable, attractive rental yields. The
Value-Added portfolio contains real estate with promising performance
potential over the medium term; while the Co-Investments portfolio
comprises minority investments in other real estate segments. This includes
opportunistic investments, project developments as well as the Funds
business segment, where we invest in first-class core properties. DIC Asset
AG has been listed on the SDAX index since June 2006 and is part of the
international EPRA index.

End of Corporate News

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Language: English
Company: DIC Asset AG
Eschersheimer Landstr. 223
60320 Frankfurt
Deutschland
Phone: +49 69 9454858-0
Fax: +49 69 9454858-99
E-mail: info@dic-asset.de
Internet: www.dic-asset.de
ISIN: DE0005098404
WKN: 509840
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart

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