DIC Asset has announced the launch of its first VIB special fund with a volume of €350 mln.
The open-ended institutional property fund, VIB Retail Balance I, will focus on food retail properties and retail parks. The fund will have a term of around 10 years and its net cash-on-cash return is targeted at 4.9% annually. The fund’s entire equity capital is €202 mln.
DIC’s subsidiary VIB will initially provide 49% of the fund’s equity.
The fund is being seeded with a portfolio consisting primarily of neighbourhood retail centres, supermarkets as well as retail warehouses in nine different German states. The assets were sold by VIB together with its subsidiary, BBI Bürgerliches Brauhaus Immobilien Aktiengesellschaft.
‘We have always taken a ‘dynamic performance’ approach to shape our business along plausible lines. Coming close to the end of a year that has been rather volatile for the industry, this fund sends a strong signal, showing that we keep expanding our unique and prospering business model consistently and with confidence. We will use it to continue to generate value-added for all of our stakeholders in 2023 while significantly lowering our loan-to-value ratio at the same time,’ commented Sonja Wärntges, CEO of DIC.
The administration of the separate asset pool will be handled by a third-party AIFM, IntReal Real Estate KVG.
As a result of the overall transaction, €18 mln in annualised net rental income will be derecognised from the (consolidated) income statement of DIC before minority interests.
