DIC Asset AG just sold the renowned Bienenkorbhaus on Frankfurt's shopping boulevard Zeil for a total transaction volume of approximately 75 million to RFR Holding GmbH within the framework of a share deal (shares of the property vehicle being acquired).
Main tenants are the flagship store of footwear multiple Ludwig Görtz and Frankfurter Sparkasse.
The lettable commercial floor area of more than 11,000 m² is currently let to over 95% in an attractive mix of use types, including retail areas (3,500 m²) and office areas (7,500 m²). Main tenants are the flagship store of footwear multiple Ludwig Görtz and Frankfurter Sparkasse (Frankfurt savings bank).
In the time since it reopened in 2009, Bienenkorbhaus generated attractive rent revenues for DIC Asset that were boosted by the substantially increased occupancy rate. DIC Asset AG has successfully brought another portfolio investment in downtown Frankfurt to a profitable conclusion, thereby once again demonstrating its competence in the areas of redevelopment and asset management. The sale of Bienenkorbhaus takes place both above the DIC's book value and above the market value recently determined in late 2011.
The sale will help DIC Asset AG to roll back its debt ratio on a major scale and inversely to increase its equity ratio yet further. With the transfer of ownership scheduled for the end of 2012, approximately €50 million will be repaid to the underwriting bank.
In this acquisition Deutsche Pfandbriefbank AG is financing partner of RFR.
Ulrich Höller, CEO of DIC Asset AG, said: "DIC will achieve a significant earnings contribution for 2012 through this sale and realize another major step toward a stronger equity position in the medium term by repaying the bank debt."
Dr. Alexander Koblischek, Managing Director of RFR Management, said: "We are very pleased that the acquisition of Bienenkorbhaus will permit us to add to our portfolio another building that is closely associated with Frankfurt's history and located on Germany's most frequented shopping boulevard."
Source: Thomas Pfaff Kommunikation