The DIC Group is one of the leading investors in the German market for commercial real estate

Press Release

DIC Asset AG acquires Retail Property Portfolio worth 
220 Million Euros for Planned Investment Fund

Frankfurt, 28.07.2016

• Acquisition of hybrid centre in Halle an der Saale and two shopping centres in Hamburg
  
• Gross lettable area of around 75,000 sqm fully occupied
• Acquisitions worth nearly 300 million euros for investment funds already transacted in 2016

DIC Asset AG (German Securities ID A1X3XX / ISIN DE000A1X3XX4) just purchased three retail properties for c. 220 million euros. The portfolio's three assets have a gross lettable area of around 75,000 square metres, and are fully occupied. The weighted average lease term is around eleven years.
Two of the properties are shopping centres in the non-discretionary retail sector located in Hamburg, one in the district of Harburg and the other in the Bergedorf district. Their combined floor area of around 44,500 square metres is fully occupied on long-term leases. The anchor tenant in both properties, which were modernised in 2011 and now sold by their private owner, is Marktkauf Holding GmbH, a member company of Edeka Group. Additionally, DIC Asset acquired the hybrid centre “Neustadt-Centrum” in the East German town of Halle an der Saale, which in addition to the retail units includes offices, restaurants and a cinema. The seller is a joint venture between Curzon Capital Partners III, a fund managed by Tristan Capital Partners, and Cornerstone Real Estate Advisers GmbH. The shopping centre, which has a gross lettable area of 30,700 square metres plus 933 parking spots, is 99 percent occupied. The anchor tenant is a “real,-” superstore on a long-term lease. The three-storey standalone property is located next to a heavily frequented artery, and is conveniently connected to the public transport system. Jones Lang LaSalle facilitated the transactions in Halle and Hamburg. The HSH Nordbank AG provided the financing for the purchase.

Aydin Karaduman, CEO of DIC Asset AG: “What distinguishes the retail properties we acquired are their long-term leases and therefore their highly stable revenues, the outstanding micro-locations, and the high degree of centrality in their respective sub-markets. The assets are superbly suited for a retail investment fund with attractive dividend yields. At the moment, it is planned to set these properties aside for a retail fund we have yet to launch. We have already received encouraging feedback from potential investors.”

In addition to office property, the company also demonstrates a long-term track record in the retail usage category. Indeed, DIC Asset has proven retail expertise in selecting suitable retail assets, as well as in buying and letting them. Great contacts to a number of leading retail multiples in Germany (including Metro Group, H&M, C&A, P&C, SinnLeffers, among others) help to identify tenant leads of first-rate credit worthiness. The overall portfolio under DIC's management adds up to 250,000 sqm of retail area, occupied by roughly 275 retail tenants.

In addition to the purchase just transacted, DIC Asset has already spent 77 million euros on property acquisitions this year to date. This means that nearly 300 million euros have already been committed out of a target volume of 400 to 450 million euros earmarked for the investment fund division of DIC Asset in 2016. The assets under the management of the fund division, which are administrated on behalf of third-party AIF management companies, currently add up to c. 1.2 billion euros.

Aydin Karaduman: “We have kept expanding our fund business with much success. As a result, the income of DIC Asset will have two major sources in the future: One is the fund business, and the other being the rental income from our commercial portfolio.”

About DIC Asset AG:
Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with an investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. The Company's investment strategy is geared to the continued development of a high-quality, highly profitable and regionally diversified portfolio. Real estate assets under management comprise 216 properties with an aggregate market value of EUR 3.2 billion. The real estate portfolio is structured in two segments: the Commercial Portfolio (EUR 1.7 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The Co-Investments segment (EUR 1.5 billion) comprises fund investments (accounting for a share of EUR 1.2 billion), joint-venture investments, and interests in development projects. In-house real estate management teams provide a direct service to tenants, working out of six different locations in each of the portfolio focus regions. This market presence and expertise creates the basis for preserving and enhancing earnings and real estate values. DIC Asset AG has been included 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.

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