DGAP-News: DIC Asset AG / Key word(s): Bond
DIC Asset AG: Straight bond of up to EUR 100 million at 5,875 percent
29.04.2011 / 14:23
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Straight bond of up to EUR 100 million at 5,875 percent
The SDAX-listed real estate investor DIC Asset AG (WKN 509840/ISIN
DE0005098404) has now finalised the terms for its previously announced
corporate bond (straight bond). The five-year unsubordinated corporate bond
has a volume of up to EUR 100 million and pays interest of 5,875 percent.
The issue price is 100 percent of the nominal amount. The subscription
period runs from 5 to 11 May 2011 and can be ended prematurely in the event
of oversubscription. The scheduled initial listing date is 16 May 2011. The
debentures are to be offered to private and institutional investors in
Germany and Austria within the framework of a public offering. They are
available for subscription in denominations of EUR 1,000 and are admitted
in the OTC trading of Deutsche Börse AG (Segment Entry Standard for bonds).
DIC Asset AG is the first listed real estate company in Germany to offer
such a large-volume straight bond to the capital market. For the company,
the bond constitutes an additional flexible and attractive opportunity for
debt financing above and beyond the classic mortgage loan, to which it is
complementary. In March of this year, DIC Asset AG acquired new capital
resources through an EUR 50 million capital increase, which was
oversubscribed to a factor of five. The new funds - from both the capital
increase and the placement of the bond - are predominantly to be used to
enable DIC to react quickly and flexibly to attractive purchase
opportunities on the market. This will permit DIC Asset AG to generate
further growth and secure additional revenue and wealth creation.
The bond offers an attractive opportunity to participate in the success
enjoyed by DIC Asset AG: with a balanced real estate portfolio (assets
under management over EUR 3 billion), DIC Asset AG has been generating
stable revenue and profits for many years. The main reason for this success
is its in-house asset and property management service, which guarantees
professional property management and letting from six locations in Germany
while retaining geographical proximity to its tenants. The company is sound
and recently reduced its debt ratio by a significant degree and
strengthened its capital base. DIC Asset AG's steady flows of income from
leasing activities provide a reliable cash flow, which complements a
targeted sales strategy that exploits the added value generated in a
strategic manner.
The positive leasing situation and stability of the business model are
characterised by three factors: the properties are attractively situated in
line with market requirements exclusively in German cities, are in good
condition and are geared towards tenants' requirements; the very broad
tenant base of DIC properties is characterised by sound credit ratings; and
the tenancy agreements have long terms of over five years on average; for
instance, around 22 percent of rental income comes from public-sector
tenants.
Because it is listed on the stock exchange and a member of the SDAX, DIC
Asset AG has to comply with high transparency standards. Comprehensive
quarterly reporting on the financial results ensures close monitoring. For
this reason, no rating is required for this bond within the scope of its
listing on the German Stock Exchange in Frankfurt. Apart from its SDAX
inclusion for several years, DIC Asset AG is represented in the established
European real estate index EPRA, resulting in high levels of confidence of
German and international investors.
Interested investors can subscribe to the debentures via their home or
direct bank at the Frankfurt Stock Exchange as well as via the global
coordinator and bookrunner Berenberg Bank, Hamburg, as well as the
co-manager Solventis Wertpapierhandelsbank, Düsseldorf. A binding
commitment by both banks in the acquisition and placement agreement means
that a placement volume of at least EUR 60 million is guaranteed. The
prospectus necessary for the public offering is approved by the German
Federal Financial Supervisory Authority (BaFin) and is available on the
company's website (www.dic-asset.de).
Ulrich Höller, CEO of DIC Asset AG: 'With the DIC bond, investors are
investing in a real estate company that has remained profitable and
innovative for many years and that is invested exclusively in Germany, the
most stable market in Europe for commercial real estate.'
Disclaimer
This press release represents neither an offer to sell nor a request to
submit an offer to buy or subscribe to securities from DIC Asset AG, but
instead merely serves to provide information. This press release and the
information contained therein are not intended for distribution, either
directly or indirectly, in or within the United States of America, Canada,
Australia or Japan.
The public offering for the debentures will be made solely on the basis of
the prospectus approved by the German Federal Financial Supervisory
Authority on 29 April, which is available free of charge from the company's
website (www.dic-asset.de/investor-relations) and on the website of the
Frankfurt Stock Exchange and from DIC Asset AG, Eschersheimer LandstraÃe
223, 60320 Frankfurt, Germany. The prospectus is the only applicable
document for the planned offering and contains the information required for
investors according to the statutory provisions.
This press release contains forward-looking statements. Forward-looking
statements are statements which do not describe facts in the past, but
instead use terms such as 'believe', 'assume', 'expect', 'presume',
'estimate', 'plan', 'intend', 'might', or similar formulations. By their
very nature, these forward-looking statements are subject to risks and
uncertainties, as they refer to future events and are based on current
assumptions and estimates by DIC Asset AG, which may not occur at all, or
not as expected, in the future. They therefore do not represent a guarantee
for the occurrence of future events or actions on the part of DIC Asset AG,
and the actual financial situation and the results of DIC Asset AG actually
achieved, as well as the overall economic development and legal framework
conditions, can differ significantly from the expectations expressly or
implicitly assumed in the statements about the future and may not fulfil
them. Investors are therefore warned not to base their investment decisions
in respect of DIC Asset AG on the forward-looking statements expressed
here.
DIC Asset AG does not accept any obligation to update or correct
forward-looking statements contained herein about future events or
developments insofar as there is no legal obligation to do so.
Further information about DIC Asset AG can be found on the Internet at
www.dic-asset.de.
About DIC Asset AG:
Established in 2002, DIC Asset AG, with its registered office in Frankfurt
am Main, is a real estate company with a dedicated investment focus on
investing in commercial real estate in Germany, pursuing a return-oriented
investment policy. The portfolio is divided into three segments. The Core
plus portfolio includes the proprietary portfolio held on a long-term basis
and offering stable, attractive rental yields. The Value-Added portfolio
contains real estate with promising performance potential over the medium
term; while the Co-Investments segment comprises minority investments in
other real estate segments. This includes opportunistic investments,
development projects as well as the Funds business segment, where the
company invests in first-class core properties. DIC Asset AG has been
listed on the SDAX index since June 2006 and is represented in the
international EPRA Index of the most important real estate companies in
Europe.
Facts and figures
Bond:
Securities category Bearer debenture
ISIN DE000A1KQ1N3
WKN A1KQ1N
Listing Frankfurt Entry Standard
Issue volume Up to EUR 100 million, up to 100,000 debentures
Denomination (nominal amount) EUR 1,000 per debenture
Interest rate 5,875 percent per annum
Issue date 16 May 2011
Term 5 years
Early redemption Possible after two years
Subscription period 5 May 2011 to 11 May 2011, subject to extension or
reduction
Enterprise data (IFRS): 2010 2009
Total earnings EUR 228.8 million EUR 171.3 million
Cash flow from operating activities EUR 37.7 million EUR 38.7 million
Equity ratio 28.6 percent 24.0 percent
after 2011 capital increase approx. 30 percent
Net asset value EUR 598.5 million EUR 497.1 million
Debt EUR 1,376.1 million EUR 1,588.9 million
Total assets EUR 2,050.0 million EUR 2,213.4 million
End of Corporate News
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29.04.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: DIC Asset AG
Eschersheimer Landstr. 223
60320 Frankfurt
Deutschland
Phone: +49 69 9454858-0
Fax: +49 69 9454858-99
E-mail: info@dic-asset.de
Internet: www.dic-asset.de
ISIN: DE0005098404
WKN: 509840
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart
End of News DGAP News-Service
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122228 29.04.2011
DGAP-News: DIC Asset AG: Straight bond of up to EUR 100 million at 5,875 percent
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