DGAP-News: DIC Asset AG: Two Major Deals Securing Long-Term FFO
(firmenpresse) - DGAP-News: DIC Asset AG / Key word(s): Real Estate
DIC Asset AG: Two Major Deals Securing Long-Term FFO
09.08.2013 / 07:29
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Frankfurt, 09 August 2013
DIC Asset AG: Two Major Deals Securing Long-Term FFO
- Major 7 years portfolio refinancing with two banks
- Current favourable interest rate level secured long-term
- Lease renewal on a very long-term basis at eBay campus
- Successful letting ensures attractive long-term cash-flow
DIC Asset AG just reported two large and significant business transactions
that will play a definitive role in securing the Company's operative
profitability and the high FFO level in the long run.
1. Refinancing Volume of EUR 320 million
In an arrangement with Deutsche Pfandbriefbank AG and HSH Nordbank AG that
was negotiated more than a year ahead of maturity, DIC Asset AG obtained
refinancing for a bank loan that was taken out for the Company's largest
proprietary portfolio. The loan volume of EUR 320 million and the 7-year
term raised the average maturity of DIC Asset AG's financial debt
significantly from currently around 3 years to a highly stable 4.2 years.
The credit line secures the average interest rate for DIC Asset AG's
financial debt at the current level of around 4 per cent.
This means that around 80 percent of the 2014 refinancing volume has
already been arranged. At the same time, the maturity structure of the
total debt has been considerably improved: The share of loans with
maturities of more than five years increases from currently around 20 per
cent to approx. 50 per cent. The bank loan just negotiated on a
non-recourse basis will prospectively replace the existing financing
arrangements by the end of Q3 2013.
The portfolio to be refinanced was acquired in 2006, and consists of around
40 attractive office and commercial properties in good to excellent
locations and a gross lettable area of around 240,000 sqm. The real estate
portfolio reflects the key performance indicators (specifically the average
lease term, the rental yield, the occupancy rate, and the interest coverage
ratio) of the overall portfolio performance of DIC Asset AG. The assets are
predominantly located in the Rhine-Neckar region and in the Rhine-Main
metro area, the focus being on Frankfurt. Among the properties' blue-chip
tenants are BASF, Deutsche Börse, the State of Baden-Württemberg, the State
of Hesse, as well as high-net-worth retail tenants.
2. Lease Renewal for 20,000 sqm at eBay Campus
Following the report of a major letting contract (6,700 sqm) and the
repositioning of the office and commercial property 'Bochumer Fenster' last
week, DIC Asset AG just signed another major letting contract of key
importance. With the expiration of the existing lease of eBay still two
years away, the Company just renewed the lease for the Germany headquarters
of the online-auction and trading company, which extend over around 20,000
sqm of office space, for the very long term and based on the current market
rent. To date, this rental agreement ranks among the top three leases
signed this year in the Berlin office market.
The lease renewal shows the occupier's high level of appreciation for the
location and the property at 'EUROPARC Dreilinden' near Berlin, as well as
for the real estate management provided by DIC Onsite. Having successfully
tied a renowned and prospering tenant tothe premises long-term, DIC Asset
AG also secured an attractive cash-flow for the coming years. The tenant
was advised by Jones LangLaSalle.
Raised in 2005, and consisting of three building sections along with 300
parking spaces, this modern office property has been part of the
proprietary portfolio of DIC Asset AG ever since. The eBay campus is part
of a former 50/50 joint venture portfolio held together with MSREF (Morgan
Stanley Real Estate Funds). In late 2011, DIC Asset AG took over the entire
portfolio worth EUR 190 million in its Commercial Portfolio. The office
complex has been fully occupied by eBay since its completion, with roughly
1,000 employees working here.
Ulrich Höller, CEO of DIC Asset AG: 'These two deals will definitively
boost the high profitability of DIC Asset AG. The successful signings
highlight once again the Company's robust operative productivity.'
Next Tuesday, 13 August 2013, DIC Asset AG will publish its mid-year
figures. The Management Board will elaborate the result and the latest
business developments in a telephone conference at 10:00 CET.
For details on DIC Asset AG, please visit us on the Internet at
www.dic-asset.de.
About DIC Asset AG:
Established in 2002, DIC Asset AG, with registered offices in
Frankfurt/Main, is a real estate company with a dedicated investment focus
on commercial real estate in Germany, pursuing a return-oriented investment
policy. Real estate assets under management currently amount to approx. EUR
3.3 billion, comprising around 260 properties. The Company's investment
strategy is geared to the continued development of a high-quality, highly
profitable and regionally diversified portfolio. The real estate portfolio
is structured in two segments: the Commercial Portfolio (EUR 1.8 billion)
comprises existing properties with long-term rental contracts generating
attractive rental yields. The Co-Investments segment (pro-rata share of EUR
0.3 billion) comprises fund investments, joint-venture investments, and
interests in development projects. DIC Asset AG provides a direct service
to tenants through its own real estate management teams in six branch
offices located at the regional hubs within the portfolio. This provides
DIC Asset AG with an edge in terms of market presence and expertise, and
builds the foundation for maintaining and increasing income and the value
of its real estate assets. DIC Asset AG has been included in the SDAX(R)
segment of the Frankfurt Stock Exchange since June 2006. The Company's
shares are also included in the EPRA index, which tracks the performance of
the most important European real estate companies.
Press Contact
Thomas Pfaff Kommunikation
Höchlstraße 2
D-81675 Munich
phone +49-89-992496-50
fax +49-89-992496-52
mobile +49-172-8312923
kontakt(at)pfaff-kommunikation.de
Investor Relations&Corporate Communications
Immo von Homeyer
DIC Asset AG
Eschersheimer Landstraße 223
60320 Frankfurt am Main
phone +49-69-274033-86
fax +49-69-9454858-99
i.vonhomeyer(at)dic-asset.de
End of Corporate News
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Language: English
Company: DIC Asset AG
Eschersheimer Landstr. 223
60320 Frankfurt
Germany
Phone: +49 69 9454858-86
Fax: +49 69 9454858-99
E-mail: ir(at)dic-asset.de
Internet: www.dic-asset.de
ISIN: DE0005098404, DE000A1KQ1N3, DE000A1TNJ22
WKN: 509840, A1KQ1N, A1TNJ2
Indices: S-DAX
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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225017 09.08.2013
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Datum: 09.08.2013 - 07:29 Uhr
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