30. April 2012     Print Print 

DIC Asset acquires two two office properties in Frankfurt

DIC Asset AG finalised the acquisition of two office properties in Frankfurt, earmarked for its portfolio of existing real estate (Commercial Portfolio). The deal has an investment volume of approximately € 40 million. The aggregate FFO realised by these properties will add up to approximately € 0.7 million before the end of 2012, and double to approximately € 1.4 million in 2013.

The deed for one of the office properties, which is located in the direct vicinity of Frankfurt’s central railway station, has just been signed. The title will most likely be transferred by the end of Q2. The investment volume equals € 17 million. The property, which has a letting space of 7,200 m², is almost fully let, and generates annual rent revenues of approximately € 1.3 million, generating a stable cash-flow for DIC Asset, and paying an initial rental yield of 7.6 percent. With an average lease term of around 9 years, the property is let long-term to high-net-worth tenants. The excellent micro-location with its superb infrastructure suggests a wide variety of options for re-letting the property. The acquisition of this asset was facilitated by BNP Paribas Real Estate. Financing partner was DG Hyp.

The deed for a new office property with 11,500 m² of office space, just completed at Frankfurt Airport, was signed at the end of December 2011, as reported at the start of this year. The title was transferred as scheduled in late March 2012. The total investment volume equalled approximately € 22 million. Let on long-term letting contracts with an average lifetime of 7 years, and generating rent revenues of € 1.6 million annually, this property, too, contributes a stable cash-flow and a rental initial yield of 7.3 percent. The transaction was facilitated by Trompetter Immobilien GmbH. Property financing was provided by Helaba, the state bank of Hesse and Thuringia.

In addition, three commercial properties from the co-investment segment in Düsseldorf and Hamburg, having a volume of approximately € 10 million each, were sold during the first months of 2012.

Simultaneously, DIC Asset AG successfully signed major letting contracts during the first quarter: Important signings included primarily letting contracts with internationally active industrials in Germany, including a new long-term letting contract for 9,400 m² of office space in the southern region, a long-term lease renewal for 6,500 m² of office space, also in southern Germany, and a re-letting contract for 3,700 m² of office space in the western region. On the whole, the take-up increased by 7 percent to around 52,000 m² during the first quarter (up from 48,300 m² during Q1 2011). Thereof, around 30,000 m² represented new letting contracts (Q1 2011: 24,100 m²). This pushed the vacancy rate down to 12.3 percent in Q1 2012 despite the traditionally elevated lease expiration rate at the beginning of a given year (Q4 2011: 12.4 percent, Q1 2011: 14.3 percent).