DIC Asset : Purchases Office Real Estate in Hanover with Around 18,000 Square Metres

Press Release

DIC Asset AG Purchases Office Real Estate in Hanover with Around 18,000 Square Metres

(Frankfurt, 12.09.2016)

DIC Asset AG (SCN A1X3XX / ISIN DE000A1X3XX4) has purchased the office real estate Office Center Plaza in Hanover for its investment fund DIC Office Balance II for approx. 32 million euros. The seller is a private investor. The property has a total lease area of 17,700 square metres and borders on the Hanover exhibition site, with its worldwide important trade fairs CeBit and Hannover Messe. The anchor tenants occupying around 13,200 square metres are Niedersächsische Landesentwicklungsgesellschaft (NILEG) Immobilien GmbH, building-service company and property developer that is a member of the Vonovia Group, and htp GmbH, a company operating in the telecommunications branch in the Hanover area. The lease level for the building, which was erected in 2002, is currently 93 percent. GSK Stockmann + Kollegen and ANGERMANN were involved in the purchase as consultants. DG Hyp AG provided the financing.

'With the Office Center Plaza we have acquired a modern property in an outstanding location with very good public-transport connections; an ideal extension of the previous investment portfolio. Given the high level of demand in the office market in Hanover, we are confident that we can quickly reduce the existing vacancies,' said Aydin Karaduman, Chairman of the Board of DIC Asset AG. In Lower Saxony's state capital, according to the real-estate-market report for Northern Germany issued by DG Hyp in June 2016, the number of office employees has risen over the past three years by three percent. With top rents of 14.50 euros per square metre and a vacancy rate of 4.8 percent, Hanover is positioned in the German office-real-estate market directly behind the Top 7 cities. 'The purchase in Hanover also strengthens our regional diversification with a higher valuation of the northern region. B-cities throughout the entire territory of the federal republic will continue to form a focus of our future investment strategy,' added Karaduman.

With the purchase DIC Asset increases its fund investment volume for 2016 to more than 330 million euros. This already amounts to two-thirds of the target volume stipulated for 2016 of 500 million euros, which was increased after the presentation of the half-yearly report at the beginning of August.

About DIC Asset AG:
Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with an investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. The Company's investment strategy is geared to the continued development of a high-quality, highly profitable and regionally diversified portfolio. Real estate assets under management comprise 210 properties with an aggregate market value of EUR 3.2 billion. The real estate portfolio is structured in two segments: the Commercial Portfolio (EUR 1.7 billion) comprises existing properties with long-term rental contracts generating attractive rental yields. The Co-Investments segment (EUR 1.5 billion) comprises fund investments (accounting for a share of EUR 1.2 billion), joint-venture investments, and interests in development projects. In-house real estate management teams provide a direct service to tenants, working out of six different locations in each of the portfolio focus regions. This market presence and expertise creates the basis for preserving and enhancing earnings and real estate values. DIC Asset AG has been included in the SDAX® 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.