DGAP-News

DIC Asset AG realises early refinancing of the Commercial Portfolio

DGAP-News: DIC Asset AG / Key word(s): Financing
DIC Asset AG realises early refinancing of the Commercial Portfolio

14.12.2016 / 18:41
The issuer is solely responsible for the content of this announcement.

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Press Release

DIC Asset AG realises early refinancing of the Commercial Portfolio

- Roughly EUR 1 billion refinanced over seven-year term

- Substantial reduction of Commercial Portfolio financing costs to circa
1.7 percent and amortisation rate to around 1 percent

- Funds from operations (FFO) and cash flow boosted as of the
2017 financial year

- FFO between EUR 55 and 60 million expected from 2017

- Sustainable long-term continuity of dividends secured


Frankfurt/Main, December 14th 2016. DIC Asset AG (WKN A1X3XX / ISIN
DE000A1X3XX4) announced today the signing of a credit arrangement for EUR
960 million for the Commercial Portfolio. The new loan with an overall term
of seven years will be used to prematurely repay the existing financing
arrangements signed with several banks for the Commercial Portfolio. The
new financing arrangement was underwritten by Deutsche Hypothekenbank AG
(EUR 510 million) as joint lead manager as well as by Berlin Hyp AG (EUR
250 million) and HSH Nordbank AG (EUR 200 million). For Deutsche
Hypothekenbank AG it is the largest financing transaction in their history.
Within the framework of its business plan, the new credit arrangement gives
DIC Asset AG a high degree of planning security and already takes into
account the transaction volumes planned with regards to the continuous
optimisation of the Commercial Portfolio in the years to come. Jörg H.
Becker of Bögner, Hensel and Partners provided legal counsel to DIC Asset
AG for the transaction.


Substantial reduction of financing costs down to circa 1.7 percent

The newly negotiated credit arrangement lowers the interest rate on the
Commercial Portfolio's bank loans to circa 1.7 percent, a drop of 170 basis
points compared to the previous financing conditions. The amortisation rate
additionally falls from around 3 percent to approximately 1 percent p.a.
This puts DIC Asset AG at the head of its field of competitors. The
existing financing arrangements are expected to be almost entirely repaid
in January 2017. The premature repayment of the old debt will trigger
certain one-off expenses not recognised in the FFO, including but not
limited to the payment of early termination penalties of approximately EUR
59 million. For the 2016 financial year, DIC Asset AG therefore anticipates
a one-time negative consolidated income after tax which will amount to