German asset manager DIC Asset has sold a portfolio of 15 high street properties across Germany to an institutional investor for an undisclosed sum.
The Frankfurt-listed company executed the deal by divesting its DIC Highstreet Balance fund via a sale of share certificates. Media reports suggest the fund has a volume of around €210 mln.
According to the asset manager, it is the first time DIC Asset has succeeded in placing an investment fund under its management within the framework of a sale of share certificates.
'Both in our interest and in our investor's interest, we took advantage of the favourable current market environment, and for the first time ever placed an entire DIC investment fund,' said Sonja Wärntges, CEO of DIC Asset.
'Although share certificate sales of this type are not yet standard practice, they represent an attractive and innovative exit option that our fund management implemented successfully, not least from a cost perspective.'
The open-ended fund includes 15 retail properties in large and medium-sized German centres marked by high spending power, representing a combined lettable area of around 85,000 m2 and an annual rent income of circa €11.8 mln.
Launched in 2012, the investment fund returned a running yield in excess of the planned target return of 5% to its investors. As a result of the fund's sale, this performance was topped.
DIC Asset held a proprietary equity interest of 5% in the fund.
DIC was advised by CMS Hasche Sigle as well as by Comfort München and Ernst & Young Real Estate.
