DIC Asset AG lets 7,600 sqm in Frankfurt and 2,200 sqm in Heidelberg

DGAP-News: DIC Asset AG / Key word(s): Real Estate
19.02.2021 / 07:30
The issuer is solely responsible for the content of this announcement.

Press Release

DIC Asset AG lets 7,600 sqm in Frankfurt and 2,200 sqm in Heidelberg

  • New lease of 7,600 sqm at "Palazzo Fiorentino"
  • This is currently the largest new lease on Frankfurt's office market
  • Reconstruction and modernisation lead to a revaluation of the property and increasing income
  • And: premature renewal of a lease for 2,200 sqm in multi-tenant office property in Heidelberg

Frankfurt am Main, 19 February 2021. Today, DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany's leading listed property companies, announces the signing of lease agreements for premises in two properties under its management, one in Frankfurt and the other one in Heidelberg.

In the "Palazzo Fiorentino" office property in Frankfurt's Sachsenhausen district, 7,600 sqm of office space were re-let directly when the previous tenant moved out. This is currently the biggest new lease on Frankfurt's office letting market. The new tenant is an agency of the city of Frankfurt am Main. It has signed a contract for well over 10 years.

"I am very pleased about this new lease and about the new tenant," says Sonja Wärntges, CEO of DIC Asset AG. "I am particularly pleased that we have once again been able to demonstrate how we always quickly find the right tenant through our professional network and with our reputation. We will now design the space with our own team in such a way that we meet the demands of the new tenant and at the same time increase the value of the property. This letting demonstrates exactly what we mean by 'dynamic performance'. Reacting quickly. And then work creatively and reliably."

In March 2021, work will begin on renovating and modernizing the space. For example, the previous cafeteria will be converted into offices. These measures will lead to a significant upgrade of the property and a corresponding increase in rental income. In the summer of 2022, the authority will open its doors to the public at its new location, right on the Main River and opposite the European Central Bank. The property has a total of 10,900 sqm and is owned by a open-ended real estate special AIF with a focus on offices.

Additionally, in Heidelberg the company prematurely renewed the existing lease agreement for around 2,200 sqm that an advanced education centre occupies in a multi-tenant office property right by the River Neckar. The asset, located on Vangerowstrasse, is owned by an open-ended real estate special AIF, and is currently fully let, the average remaining term being 3.4 years.

"With its successful lettings, DIC Asset AG once again highlights the productivity of its nationally operating real estate platform for the commercial real estate market in Germany. We offer convincing quality and the competence of an established full-service solution that covers commercial real estate investments in all phases of the value-add cycle. Our presence on the ground in all of Germany's Top 7 cities and the 360 approach of our property value-add strategy set us apart as being particularly close to the market and to the client while covering the entire life cycle of a given property, from the initial investment, to the management side, and all the way to the eventual exit," adds Sonja Wärntges.

About DIC Asset AG:

DIC Asset AG is Germany's leading listed specialist for commercial real estate with more than 20 years of experience on the real estate market and access to a broad-based network of investors. Our business is based on a regional and inter-regional real estate platform with eight offices on the ground in all major German markets. We manage 225 assets with a combined market value of c. EUR 10.3 billion on site, always close to our properties and their occupiers.

The Commercial Portfolio segment (EUR 2.0 billion in assets under management) represents the proprietary real estate portfolio of DIC Asset AG. Here, we generate constant cash flows from stable rent revenues on long-term leases while also optimising the value of our portfolio assets through active management and realising gains from sales.

In the Institutional Business segment (EUR 8.3 billion in assets under management), we earn recurrent fees from real estate services we provide to national and international institutional investors by structuring and managing investment vehicles that return attractive dividend yields.

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

IR Contact DIC Asset AG:
Peer Schlinkmann
Head of Investor Relations & Corporate Communications
Neue Mainzer Strasse 20
D-60311 Frankfurt am Main
Phone +49 69 9454858-1492
ir@dic-asset.de



19.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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