DIC Asset acquires mixed portfolio in Germany for EUR 173m

Frankfurt-based real estate company DIC Asset has purchased a mixed portfolio of 13 properties in Germany from iii Investment's Euromobil fund for EUR 173 mln. The properties are located in major cities such as Munich, Frankfurt, Wiesbaden, Flensburg and Leipzig. About 60% of the 77,000 m² portfolio is used for retail, mainly in prime pedestrian zones, while the rest is office and commercial space. The properties were acquired for DIC Asset’s value-added segment.

The main tenants are high-street retailers H&M, Peek & Cloppenburg und Marktkauf. The average remaining lease term of the rental area is 3.6 years and the vacancy rate is 10%. The current annual rent is just over EUR 11 mln, equating to a rental yield - gross passing rent in relation to the total investment - of 6.5% The seller was advised by Cushman & Wakefield.

Established in 2002, DIC Asset's portfolio comprises 1.3 million m² of floor space, spread over 350 properties and valued at EUR 3.5 bn. 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 strong performance potential over the medium term; while the opportunistic co-investments portfolio comprises real estate investments that have a more pronounced risk/return profile. The assets in this segment are repositioned according to an individual business plan and subsequently placed with third parties. DIC Asset has been listed on the SDAX index since June 2006.