DIC Asset AG specializes in commercial real estate, particularly office property, in Germany. It is currently managing real estate assets of around 3.3 billion (thereof 2.2 billion on DIC Asset AG's balance sheet), with some 270 properties. CEO Ulrich Hoeller spoke to Leon Goldwater about DIC Asset AG's competitive advantages and the company's future plans.
Who is DIC Asset AG?
DIC Asset is a German listed commercial real estate vehicle; we invest all over Germany and our assets under management are 3.3 billion, which means 270 assets all around Germany. Germany has a polycentric structure, being the most diversified market in Europe, so we are not present only in the top cities, but in strong regional centers as well.
Our main focus are office properties, which amount to approximately 70%. We are internally managed, so we have a broad range of real estate services; we have our own internal asset and property management and our philosophy is to be close to the asset, close to the tenants and to do the main things on our own.
We currently have about 200 people on the ground, thanks to our asset and property management platform. We have six branches all over Germany, which is necessary because of the market's diversified structure, so we are responsible for talking to the tenants, as well as the letting activities.
What differentiates you from your competition?
First of all we have a clear focus: only Germany and only commercial assets, mainly offices; another advantage is our broad range of services, as we are internally managed. We also have a small development/redevelopment team, which is responsible for some developments, but mostly for refurbishments.
Do you focus on any particular cities?
We are present all over the country; our portfolio is roughly 50% in the top cities and 50% in the secondary markets. Our headquarters are in Frankfurt and we have around 25% in the Rhine-Main region, in Central Germany; in the South we have roughly 25%, 15% in the North, 25% in the West and in Berlin and the East approx. 10%.
Any new developments?
Our major focus right now is to have an asset portfolio with strong cash flows. Based on that cash flow we are doing some developments; these days we have a special development in Frankfurt, the MainTor project that won the award at MIPIM. It is a huge redevelopment of the new urban city quarter, the CBD, which is the banking district in Frankfurt.