Frankfurt-based real estate investor DIC Asset said it is planning further fund launches after fully placing its first EUR 120 mln special fund, DIC Office Balance I. Commitments in excess of this amount have already been attracted for the fund’s further development, DIC said, and the aim is to increase its volume in accordance with investors.
Frankfurt-based real estate investor DIC Asset said it is planning further fund launches after fully placing its first EUR 120 mln special fund, DIC Office Balance I. Commitments in excess of this amount have already been attracted for the fund’s further development, DIC said, and the aim is to increase its volume in accordance with investors.
DIC started marketing the office fund in the spring of 2010. A high initial placement, accounting for more than 75% of equity, saw the special fund reach the starting line and become operational in the autumn, with the properties being transferred to the fund's assets.
The fund has attracted mainly institutional investors and family offices, which have shares in a selection of five top-quality properties in German metropolitan areas (Berlin, Düsseldorf, Wiesbaden, Mannheim and Munich). Covering a total rental space in excess of 58,000 m², the properties are almost fully let (97.5%), with over 80% being used as offices. The borrowing (LTV) ratio is currently around 49%, with loans arranged on a long-term basis.
Ulrich Höller, CEO of DIC Asset said: 'Our achievement in fully placing our first special fund has enabled us to enjoy rapid early success in our new business segment. We are looking to really build on this in the coming years.'
