Tuesday, 22 July 2014
DIC Asset launches new fund and invests in retail properties (DE)
DIC Asset AG just launched its third institutional real estate fund (open-ended special AIF), “DIC Office Balance II.” The fund will commit itself in office properties in Germany, focusing on core property occupied on long-term leases and located in conurbations, metro areas or regional business hubs. The fund's target volume will initially be €200 million, though it may be stocked up at a later point in time if required.
The fund will be created specifically for two clients: SV SparkassenVersicherung, Stuttgart, and Helaba Invest KAGmbH, Frankfurt, for several institutional investors. DIC Asset AG will acquire a stake of around 5% in its own right, while also handling the asset management and property management as well as the property acquisitions and sales. As with the other funds, IntReal International Real Estate Kapitalverwaltungsgesellschaft mbH, Hamburg, will serve as investment service company (“Service KVG”).
The fund launch coincided with the first property investment. The new fund acquired the office property “Barbarossa Center” with some retail units located in Cologne from an international institutional investor for approximately €32 million. The high-rise on Barbarossaplatz, 60 metres tall, straddles a superb downtown location and is highly visible. Originally built in 1972, it was redeveloped and modernised in 2002 and 2013. It extends over 13,300 m² of rental space across 19 floors. The building is fully occupied by altogether nine tenants.
On top of that, DIC Asset AG bought another two retail properties for approximately €27 million that are earmarked for the “DIC HighStreet Balance” institutional fund. Both of these assets – one located in Düren, the other in Wuppertal – have a rental space of around 4,000 m², are situated in prime high street locations and are almost entirely let on long-term leases to blue-chip tenants, Peek & Cloppenburg and Rossmann, respectively. This brings DIC Asset AG's volume of acquisitions up to approximately €60 million for the ongoing year.
The transactions were facilitated by the estate agencies JLL, CITYJUNG and EKP-Projekt.
Source: Pfaff Kommunikation