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

Deutsche Immobilien Chancen (DIC) with registered office in Frankfurt am Main was set up in 1998. Today, it is active across Germany and one of the country's leading investment entities for commercial real estate.


Press Release

DIC Asset AG acquires Refurbishment under Cashflow in Stuttgart region

Frankfurt, 15.09.2020

  • Multi-tenant office building "Gate 9" in Leinfelden-Echterdingen (Stuttgart fairground / airport area) with additional value-add potential during modernisation phase
  • Pre-let ratio at around 56%, further rental talks ongoing
  • Completion in the second quarter of 2021
  • Notarised acquisition volume since start of the year up to c. EUR 188 million, c. 75% of the acquisition target for the Commercial Portfolio

Frankfurt am Main, 15 September 2020. DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany's leading listed property companies, signed the notarial contract for the "Gate 9" multi-tenant office building in Leinfelden-Echterdingen (Stuttgart region) in late July of this year. The transfer of benefits and burden for the property took place in the beginning of September 2020. The property was sold by Objekt Fasanenweg Leinfelden GmbH & Co. KG, a project company of thallos AG based in Tübingen and Stuttgart.

The property was acquired for c. EUR 72 million (total investment costs). The property is currently already generating rental cash flows from one tenant. Two additional tenants have already been confirmed and will move into their premises in 2021. In addition, DIC Asset AG benefits from additional high value-add potential by achieving full letting until the completion of the modernisation work and the letting phase. The gross rental yield by the time the building is fully occupied latest by end of 2021 will be at the attractive level of 5.3%.

"We are happy to broaden the footstep of our portfolio in the Stuttgart region with the structuring of this attractive off-market deal with significant value-add potential. Furthermore, we were once again able to demonstrate our transaction competence. With this acquisition we already reach 75% of our acquisition target for the Commercial Portfolio," said CEO Sonja Wärntges as she commented the acquisition.

The property is conveniently located next to the A8 motorway and directly next to the
Daimler Truck Campus, which is under construction at this time. The property has around 17,900 sqm of lettable area and 288 parking spots. With three lease agreements signed so far-the incoming office tenants including an automotive supplier, a flexible office provider and an IT consultancy-the pre-let ratio of the property is now about 56%. Further rental contracts are currently being negotiated. Upon full occupancy, the average weighted lease term (WALT) will be around 8.5 years. The completion will happen in the second quarter of 2021.

The established and steadily growing office market in Leinfelden-Echterdingen is located south of the regional state capital of Stuttgart near the city's airport, which plays a central networking role in this economically strong region. Given the persistently strong demand on the German investment market, DIC Asset AG expects to keep seeing a high level of transaction activity in Stuttgart and elsewhere.

 

About DIC Asset AG:

With more than 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 186 assets with a combined market value of c. EUR 8.5 billion under management (as of 30/06/2020).

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 1.9 billion in assets under management, as of 30/06/2020), 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 6.6 billion in assets under management, as of 30/06/2020), 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.

IR Contact DIC Asset AG:
Peer Schlinkmann
Head of Investor Relations & Corporate Communications
Neue Mainzer Strasse 20
D-60311 Frankfurt am Main
Phone +49 69 9454858-1492
ir@dic-asset.de



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Deutsche Immobilien Chancen AG & Co. KGaA

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