Germany's DIC Asset has announced the launch of its second institutional property fund.
Germany's DIC Asset has announced the launch of its second institutional property fund.
DIC High Street Balance will focus on Grade A commercial properties in downtown locations and pedestrian zones in German cities.
The fund has a planned investment volume of around €250 mln.
Five German institutional investors have committed €90 mln in equity to the fund, which, with leverage of 55%, will allow investments worth €170 mln.
Two retail properties in Dresden and Mannheim have already been acquired for €25 mln.
Frankfurt-based DIC Asset said investors would benefit from attractive distributions of around 5% annually. Similar to the first institutional fund, DIC Office Balance I - which has a current fund volume of around €350 mln - DIC Asset acts as co-investor in its own right as it holds a significant stake of 20% in the fund.
Warburg-Henderson subsidiary IntReal serves as investment service company.
The overall planned volume for these two DIC funds is around €700 mln, to be achieved in the coming two years.
DIC Asset has €3.3 bn of assets under management, of which €2.2 bn is on its balance sheet.
