The “DIC HighStreet Balance” open-ended institutional fund included 15 retail properties in German main- and medium-sized centres marked by high spending power, and added up to a combined lettable area of around 85,000 sq m and an annual rent income of circa EUR 11.8 million.
Launched in 2012, the investment fund returned a running yield in excess of the planned target return of 5.0 percent to its investors. As a result of the fund’s sale, this performance was actually topped.
In the context of the share certificates sale, the properties transferred to another economic beneficiary, and the cost effectiveness of the chosen transaction structure for both buyer and seller significantly contributed to the success. As a result, DIC managed to save approximately EUR 13 million in incidental sales costs for its investors.
DIC Asset AG, which held a proprietary equity interest of 5.0 percent in the fund, earned transaction fees in an additional amount of EUR 5.9 million for its successful marketing effort.
“Both in our interest and in our investors’ interest, we took advantage of the favourable current market environment, and for the first time ever placed an entire DIC investment fund. Although share certificate sales of this type are not yet standard practice, they represent an attractive and innovative exit option that our fund management implemented successfully, not least from a cost perspective. It underlines our ambitions to expand our active and professional fund management, and our strategy of seeking to establish the fund business as trading platform on the market,” said Sonja Wärntges, CEO of DIC Asset AG.
During the sale, DIC was advised by CMS Hasche Sigle as well as by COMFORT München GmbH and Ernst & Young Real Estate GmbH.