GERMANY - DIC Asset has secured more than three-quarters of the €117m capital raising target for its inaugural special investment fund.
The Frankfurt-listed real estate company has attracted equity for the DIC Office Balance I fund from a number of German institutional investors, predominantly pension funds, foundations, insurance companies and family offices.
The high level of initial placements prompted DIC Asset to begin transferring assets from a €211m German office portfolio to the fund in October.
Additional investors will be invited to subscribe to the fund in future, and DIC Asset will retain a 20% stake while also managing the fund.
The real estate portfolio comprises core office assets in metropolitan regions throughout Germany.
All properties are let to prime tenants under long-term agreements, offering investors immediate income distributions.
The announcement was made at the same time DIC Asset revealed its funds from operations - earnings before interest and taxes, excluding profits from disposals and development projects - were €33.1m over the first nine months of 2010.
The figure was slightly down on the same period last year, which saw funds from operations of €35.6m. The forecast for the whole of 2010 is €41-43m.
Results were boosted by the volume of new rentals, up 9%, and by the renewed reduction in net interest expenses, although this was partly offset by a reduction in the size of the portfolio following sales.
DIC Asset's total assets under management amounted to approximately €2.2bn.
Ulrich Höller, chairman of the management board, said: "The renewed strong set of operating results for the third quarter affirms our forecast that we will exceed our projections for the year 2010 as a whole.
"The successful launch of our debut fund marks the starting point for new growth in recovering markets."