DIC Asset AG invests in Munich, a very attractive location

DGAP-News: DIC Asset AG / Keyword (s): Acquisition / Real estate
07.06.2021 / 07:30
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Press release

DIC Asset AG invests in Munich, a very attractive location – Two of the city’s most outstanding properties acquired for approx. 635 million euros: “Uptown Tower” and “Campus C”

Frankfurt am Main, June 7, 2021. DIC Asset AG (ISIN: DE000A1X3XX4), one of the leading listed real estate companies in Germany, today announced the acquisition of two office buildings in Munich through an off-market transaction.

With a height of 146 meters, the “Uptown Tower” is the tallest building in the state of Bavaria and clearly defines the Munich skyline as an attractive skyscraper. The tower is the clearly visible center of a coveted office location in the rapidly growing metropolis of Munich, and characterized by awe-inspiring views. Second investment, the prestigious “Campus C” property is also defined by its exceptional visibility and great notoriety as well as by its potential for development.

The total investment costs (TIC) are around 635 million euros. With this acquisition, DIC Asset AG has made its largest investment in the Bavarian state capital to date and will benefit in the long term from the economic development of the metropolis. Both properties are fully occupied by tenants. The transfer of benefits and charges for the two properties is scheduled for the end of the second quarter of 2021.

“We have acquired two of Munich’s iconic properties. This acquisition demonstrates how well networked we are in the market. Whenever award winning properties like these hit the market, we have every chance of success, creating value for our investors and for ourselves. said Sonja Wärntges, CEO of DIC Asset AG. “In addition, we now have an even stronger presence in the Munich market with these two properties. We are witnessing a continuous influx of businesses and an ever increasing demand for modern and flexible office units. We are now able to provide them. And we could further improve the attractiveness of properties by upgrading them for their green building certification. By using the dynamic performance that makes our reputation, we create added value for the city, its inhabitants and our business partners.

Increase assets under management in Munich, one of the “Top 7” cities

The closing of this transaction increased the share of the portfolio of properties managed by DIC Asset AG in Munich, one of the “Top 7” cities, from around 7% to over 11% in market value. The DIC office in Munich will ensure optimal on-site management of the two properties.

Munich is a very attractive place. Munich’s growth engines include information and communication technologies, the service sector, research and knowledge-intensive industries, and cultural and creative industries. Munich is also Germany’s leading insurance hub and its “DAX capital”: five of the companies listed in the DAX 30 index have their main headquarters in the greater Munich area, testifying to the city’s attractiveness.

ESG: Constant increase in the share of green buildings in the managed portfolio

DIC Asset AG will request early certification of both properties as green buildings. With the expansion of the green construction portion of the portfolio under management, DIC Asset AG is consistently implementing a key element of its future ESG strategy. Around 2.1 billion euros, and therefore a share of around 20% of the total assets under management, which currently stands at 10.6 billion euros, have already been certified to date. The certification of these acquisitions will bring the proportion to around 25%.

“Uptown Tower” reserved for the storage portfolio

Completed in 2004, the “Uptown Tower” is a 37-storey office building with a total height of 146 meters and a leasable area of ​​approximately 52,300 m². Since their structural change in 2018, the premises have been characterized by flexible open-plan unit layouts with modern air conditioning. They are fully occupied under a long-term lease by the national headquarters of Telefónica Germany, one of the three main integrated network operators and communications infrastructure providers in the country.

Prior to its placement with institutional investors, the “Uptown Tower” will briefly be part of the storage portfolio of DIC Asset AG. It will be managed entirely by the company’s dedicated team in the field, which will implement the necessary measures to obtain, among other things, a green building certification.

“Campus C”: Attractive rental cash flow and potential for capital appreciation for the commercial portfolio

“Campus C”, a fully occupied multi-tenant building, was acquired for c. 66 million euros and will be held in the own portfolio. Offering a gross leasable area of ​​9,200 m², it has a value-added character and promises an ever-increasing potential for added value. The building’s main tenants are US software company Adobe Systems and two public sector tenants. The annual rental income amounts to approximately 2.4 million euros, while the secured residual lease term (WALT) is 3.1 years. The property is defined by its high alternative use potential as it can be divided into units comprising parts of a story or entire floors. The efficient layout allows for various floor plan solutions, from private offices to modern workplace concepts.

About DIC Asset AG:

DIC Asset AG is Germany’s leading listed commercial real estate specialist with over 20 years of experience in the real estate market and access to a large network of investors. Our activity is based on a regional and interregional real estate platform with eight field offices in all major German markets. We manage 231 assets with a combined market value of approx. 10.6 billion euros on site, always close to our goods and their occupants.

The Commercial Portfolio segment (2.0 billion euros in assets under management) represents the exclusive real estate portfolio of DIC Asset AG. Here, we generate consistent cash flow from stable rental income on long-term leases while also optimizing the value of our portfolio assets through active management and the realization of sales capital gains.

In the Institutional Business segment (8.6 billion euros in assets under management), we receive recurring commissions on the real estate services that we provide to national and international institutional investors by structuring and managing investment vehicles that generate attractive dividend yields.

DIC Asset AG has been listed on SDAX since June 2006.

Contact for institutional investors at GEG German Estate Group:
Christian Bock
Director of Institutional Affairs
Neue Mainzer Str. 2-4 * Main panorama
D-60311 Frankfurt am Main
T +49 69 274033-1220

IR / RP contact DIC Asset AG:
Pair Schlinkmann
Head of Investor Relations & Corporate Communication
Neue Mainzer Str. 20 * MainTor Primus
D-60311 Frankfurt am Main
T +49 69 9454858-1492
[email protected]

07.06.2021 Distribution of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this advertisement.

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