German real estate investor DIC Asset said on Monday that it plans to launch a capital increase to fund further growth. The company will issue more than 2.8 million new shares at a price of EUR 21.90 each, near to last Friday's closing price of EUR 21.94. The proceeds of about EUR 62 mln will be used to finance further acquisitions of real estate assets, the company said.
German real estate investor DIC Asset said on Monday that it plans to launch a capital increase to fund further growth. The company will issue more than 2.8 million new shares at a price of EUR 21.90 each, near to last Friday's closing price of EUR 21.94. The proceeds of about EUR 62 mln will be used to finance further acquisitions of real estate assets, the company said.
The new shares have a subscription ratio of one new share for each ten shares held and will have full dividend rights from 1 January 2007. The company's major shareholders - Deutsche Immobilien Chancen, DIC ML, and Morgan Stanley Real Estate Funds (MSREF) - have indicated that they all intend to exercise the subscription rights available on their respective stakes in full. They also intend to purchase any shares not bought by other parties.
The subscription period runs from 21 November to 4 December 2007. Deutsche Bank and Morgan Stanley have been mandated as joint lead managers.
Ulrich Holler, chairman of the management board of DIC Asset, said the latest real estate transactions in Germany indicated that the sector has started to revive after a short period of stagnation. 'The capital increase will provide a solid basis from which we will maintain the dynamic growth momentum in DIC Asset's business,' he added.
DIC Asset invests principally in the office and retail sectors in Germany. The value of the real estate under the company's management stood at EUR 3.3 bn in October this year.
