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

Press Release

DIC Asset AG acquires real estate portfolio for EUR 155 million

Frankfurt, 18.07.2007

Frankfurt-based DIC Asset AG has acquired another high-quality portfolio with a total area of around 50,000 sqm in the context of two off-market transactions. The total investment volume, including transaction costs, is EUR 155 million. Overall, the area is divided into eight real estate complexes, including the "Rheinwerk" in Bonn, two properties in Cologne's Rheinau harbor and AOK's headquarters in Neubrandenburg. All properties are new buildings or as new.

53% of the properties are for office use, and 30% are retail premises. Most of them are leased to prime tenants such as Edeka, C&A, AOK, ver.di and adidas. The rental area is almost fully leased, and has an average lease period of over 10 years. The sellers are Development Partner AG in Düsseldorf, advised by the brokers Kemper’s, and a private investor, who was advised by Brockhoff & Partner.

The properties purchased for the core segment of DIC Asset AG will remain in the portfolio in the medium to long term. In the context of optimized management, they are making a significant contribution to securing and increasing the cash flow. The rental yield is 5.9% (based on the total investment volume).

Since the beginning of 2006, DIC Asset AG has acquired real estate with a total value of EUR 2.5 billion, with off-market transactions accounting for around 40% of this figure.

About DIC Asset AG
Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with a dedicated investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. DIC Asset AG’s real estate portfolio currently includes around 1.1 million sqm of floor space, spread over 332 properties. The portfolio is divided into three segments: the Core 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 Opportunistic Co-Investments portfolio is comprised of real estate investments that have a more pronounced risk/return profile, which will be placed with third parties following a repositioning under an individual business plan. Real estate assets under management currently amount to approx. EUR 3 billion. DIC Asset AG has now been listed on the SDAX index for one year.

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