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DGAP-News: DIC Asset AG / Key word(s): Acquisition/Real Estate
DIC Asset AG Enlarges Proprietary Portfolio by Acquiring Two Logistics Properties
Frankfurt am Main, 5 October 2021. Toward the end of the third quarter, DIC Asset AG ("DIC", ISIN: DE000A1X3XX4), one of Germany's leading listed property companies, had the acquisition of two logistics properties notarised that are earmarked for its proprietary portfolio (Commercial Portfolio). One of these is a new-build logistics property in the Hanover metro region that is scheduled for completion and transfer of possession by mid-2023, the other being a fully occupied multi-tenant logistics complex in the Leipzig/Halle metro area whose possession, benefits and burdens already transferred in late September. Pro forma, the two acquisitions raise the share of logistics real estate in the combined market value of the current proprietary portfolio to around 5%. DIC moreover seeks green building certifications for both assets.
"With the two acquisitions in Hanover and Halle, we continue to expand the logistics share of our proprietary portfolio, as previously announced, and we are confident about the prospects of this asset class. We intend to use our end-to-end value-adding approach to keep expanding into the logistics segment, and are perfectly positioned to do so with our transactions team," elaborated Johannes von Mutius, member of the Management Board and Chief Investment Officer at DIC.
In the Hanover logistics region, the company acquired a planned new-build property for the price of c. EUR 26 million (total investment costs, TIC) through a forward deal. Its completion to state-of-the-art specification standards as well as the intended certification under the DGNG Gold sustainability standard are scheduled for mid-2023. The property, which has a lettable area of around 15,400 sqm, is characterised by great alternative use potential both in single- and multi-tenant occupancy. Its diversified floor space mix combines warehouse space with small-scale commercial units for light-industrial or urban logistics types of use. Located near Hanover Airport, the property's micro-environment is very easily accessible and connected to main transport axes.
In Halle (Saale), DIC spent c. EUR 28 million (TIC) on a fully occupied multi-tenant property that was already transferred into the company's proprietary portfolio toward the end of the third quarter. It divides into two building sections and has a total lettable area of around 19,300 sqm. Consisting of an existing structure and a newly constructed building in the Neustadt trading estate, the warehouse complex had a weighted average remaining lease term (WALT) of around 8 years at the time of the acquisition. The annualised rental income approximates EUR 1.3 million. The two high-net-worth tenants use their premises mainly to store medical equipment and expendable medical supplies in one case, and automation engineering equipment of order-picking systems in the other case. An ESG due diligence that was performed in the context of the acquisition confirmed the potential for a certification under the BREEAM standard (on the "very good" level). Following the acquisition, carbon reduction measures that were identified in this context will now be studied in regard to feasibility. The Halle/Leipzig logistics market is defined by persistently strong demand for logistics real estate, and saw its second-best performance ever in 2020. As business location, it is dominated by companies from the sectors renewable energies, electric mobility, mechanical engineering, and sensor technology.
The Commercial Portfolio segment represents the proprietary real estate portfolio of DIC Asset AG. Here, we generate steady cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management, and realising gains from sales.
In the Institutional Business segment, we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment vehicles that return attractive dividend yields.
DIC Asset AG has been SDAX-listed since June 2006.
IR/PR Contact DIC Asset AG:
05.10.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
DIC Asset AG
Neue Mainzer Straße 20
60311 Frankfurt am Main
+49 69 9454858-1492
+49 69 9454858-9399
DE000A1X3XX4, DE000A12T648, DE000A2GSCV5, DE000A2NBZG9
A1X3XX, A12T64, A2GSCV, A2NBZG
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Luxembourg Stock Exchange
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