DGAP-News DIC Asset AG acquires Refurbishment under Cashflow in Stuttgart region
DGAP-News: DIC Asset AG / Key word(s): Acquisition/Real Estate
DIC Asset AG acquires Refurbishment under Cashflow in Stuttgart region
- Multi-tenant office building "Gate 9" in Leinfelden-Echterdingen (Stuttgart fairground / airport area) with additional value-add potential during modernisation phase
- Pre-let ratio at around 56%, further rental talks ongoing
- Completion in the second quarter of 2021
- Notarised acquisition volume since start of the year up to c. EUR 188 million, c. 75% of the acquisition target for the Commercial Portfolio
Frankfurt am Main, 15 September 2020. DIC Asset AG (ISIN: DE000A1X3XX4), one of Germany's leading listed property companies, signed the notarial contract for the "Gate 9" multi-tenant office building in Leinfelden-Echterdingen (Stuttgart region) in late July of this year. The transfer of benefits and burden for the property took place in the beginning of September 2020. The property was sold by Objekt Fasanenweg Leinfelden GmbH & Co. KG, a project company of thallos AG based in Tübingen and Stuttgart.
The property was acquired for c. EUR 72 million (total investment costs). The property is currently already generating rental cash flows from one tenant. Two additional tenants have already been confirmed and will move into their premises in 2021. In addition, DIC Asset AG benefits from additional high value-add potential by achieving full letting until the completion of the modernisation work and the letting phase. The gross rental yield by the time the building is fully occupied latest by end of 2021 will be at the attractive level of 5.3%.
"We are happy to broaden the footstep of our portfolio in the Stuttgart region with the structuring of this attractive off-market deal with significant value-add potential. Furthermore, we were once again able to demonstrate our transaction competence. With this acquisition we already reach 75% of our acquisition target for the Commercial Portfolio," said CEO Sonja Wärntges as she commented the acquisition.