DIC Asset spends EUR 40m on Frankfurt acquisitions

Germany's DIC Asset has finalised the acquisition of two office properties in Frankfurt for a total of EUR 40 mln.

In a statement on Thursday, the company said the assets will add EUR 0.7 mln to funds from operations by year-end 2012, and another EUR 1.4 mln in 2013.

One asset, located in the direct vicinity of Frankfurt's central railway station, was acquired for EUR 17 mln in a deal financed by DG Hyp. The property provides 7,200 m² of space and is almost fully let, generating an annual rent of EUR 1.3 mln, or an initial rental yield of 7.6%. The average lease term is nine years.

The other asset is a newly-developed office of 11,500 m². Located at Frankfurt Airport, the scheme generates EUR 1.6 mln in annual rents and was acquired for EUR 22 mln, or a yield of 7.3%. Property financing was provided by Helaba, the state bank of Hesse and Thuringia.