DIC Asset raises EUR 70m through straight bond

Frankfurt-based property group DIC Asset AG has raised EUR70mln through a straight bond, beating its minimum target of EUR 60 mln but falling short of the upper target of EUR 100 mln.

' We have done a good job and we're happy with that. We didn't use a credit rating to issue the bond, which some issuers do, because for listed companies it is less important,' DIC Asset CEO Ulrich Höller told PropertyEU. 'We will continue to issue bonds in the future. This was a strategic move for us to raise debt for future growth,' he added.

Investor interest came from Germany and Austria, with institutional investors accounting for 70% of investment and retail investors for 30%, Höller said. The bond - which will pay an interest rate of 5.875% - will be listed on 16 May 2011.

DIC Asset also announced today that it plans to double the fund volume of its DIC Office Balance 1 fund within the next 18 months. The fund, which was launched in the first quarter of 2011, has already raised EUR 120mln. ' Existing investors have made a commitment that they will invest further in the fund,' Höller told PropertyEU.

The company also released its results for the first three months this year. It reported a profit of EUR 2.8 mln in the period, unchanged year-on-year.

Operating profit before depreciation and amortisation (EBDA) of EUR 9.7 mln was 8% lower than the EUR 10.5 mln in the same period last year.

The group’s gross rental income in the period amounted to EUR 27.6 mln, a drop of almost 13% on the previous year. DIC attributes the decline to the reduced portfolio size following disposals as well as the placement of the debut investment fund. However, lettings - both new and renewals - totalling 48,300 m² were signed in the first quarter, a jump of 55% on the same period last year.

Real estate assets under management stood at EUR3.2bn as of end-March 2011, up from EUR3.1bn at end-December 2010.