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

Press Release

DIC prepares development in Offenbach

Frankfurt, 21.11.2016

• Plans for new building complex with mixed hotel, residential, food and retail use
  
• Long-term leases signed by core tenants Holiday Inn and tegut…
  
• Around 130 apartments and 225 parking spaces to be created
  
• Demolition work beginning November 2016
  
• Completion planned for end of 2019

DIC Asset AG (SCN A1X3XX/ISIN DE000A1X3XX4) will begin demolition work on its property on the corner of Berliner Strasse and Luisenstrasse in Offenbach at the end of November. The property and its bordering parking spaces, which are situated on a central traffic axis between Frankfurt and Offenbach, will be replaced by new buildings for mixed hotel, residential, retail and food use as part of the repurposing concept developed by DIC. Completion is planned for the end of 2019. The hotel operator Primestar Hospitality GmbH has concluded a long-term lease for an area of 4,500 square metres and, in future, will operate a hotel under the “Holiday Inn Express” brand with around 160 rooms right on the Berliner Strasse/Luisenstrasse corner. Another main tenant will be the neighbourhood store tegut…, which has leased around 1,800 square metres of sales space. It will build three residential buildings with a total of around 80 condominiums on Bahnhofstrasse and two residential buildings with around 50 rental apartments on Berliner Strasse. The commercial space is already 90% let before the start of construction.



Aydin Karaduman, CEO of DIC Asset AG, said: “Our concept completely repositions the property and the location. Our team utilised in-house expertise in the field of retail and hotel properties to create a winning concept for the location. The extremely positive response and high level of interest on the market have confirmed this even before the start of implementation. I am confident that the modern refurbishment concept will even further enhance this already attractive neighbourhood within the surrounding area.”

Horst Schneider, Lord Mayor of Offenbach, commented: “DIC’s utilisation concept makes intelligent use of this remaining space in the neighbourhood. The development of the Luisenhof neighbourhood and “Mitte 160” has already turned it into an attractive residential area with a high quality of living. The development of the overall area shows how Offenbach can achieve quality growth as a city. This is also precisely what we intend to achieve with our 2030 master plan.”

Martina Becker, Expansion Manager for tegut…, added: “We are delighted that in future we will be able to offer customers our extensive range of regional food at a second location in Offenbach’s city centre. Our product range focuses on organic products that we source mainly from selected regional suppliers. There will be a regional baker here as well. Furthermore, we offer our customers free parking so you can come and see us conveniently at no extra cost.”

Wolfgang Gallas, Managing Director of Primestar Hospitality, explained: “This is already our fourth hotel in the Rhine/Main region, as we will be opening the Frankfurt Airport Holiday Inn with 288 rooms in December, followed by the Hampton by Hilton Frankfurt Gateway Garden with 196 rooms by mid-2018 and the Hampton by Hilton Frankfurt East with 188 rooms right at the European Central Bank in autumn 2017.”

The city of Offenbach benefits from its proximity to Frankfurt and, in recent years, has enjoyed population growth from around 118,000 inhabitants in 2009 to around 133,000 in 2016. The Hessian Statistical Office is predicting population growth of 9.3% by 2030. In addition, transaction volumes for residential and commercial buildings increased from EUR 57 million in 2013 to EUR 134 million in 2014 and EUR 100 million in 2015.

DIC has a proven track record for office, retail and hotel properties. The Frankfurt-based company has pronounced retail expertise in rental and investment, not to mention the repositioning of retail properties. In its overall portfolio, DIC manages more than 320,000 square metres of retail space with around 290 retail tenants. Furthermore, its managed property portfolio features a number of hotels with different operators.

Nine-month results affirm raised full-year guidance
Performance for the first nine months re-affirms DIC Asset AG’s raised FFO forecast of EUR 46 million - EUR 47 million for the 2016 financial year (previous guidance: EUR 43-45 million). Within this guidance, the Company projects gross rental income of between EUR 109 million and EUR 111 million for the full financial year 2016. To expedite further growth in its funds business, the Company plans to acquire EUR 500 million of assets, of which EUR 330 million has already been realised. The projected sales volume of EUR 80-100 million for the Commercial Portfolio have already been achieved.

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 circa 210 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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