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Diok RealEstate AG: Diok RealEstate AG Buys Another Two Office Buildings in North Rhine-Westphalia and Bavaria, Pushing Portfolio Value past EUR 200m
DGAP-News: Diok RealEstate AG
/ Key word(s): Real Estate/Acquisition
– Assets are located in the administrative district of Detmold (North Rhine-Westphalia) and the Munich metro region (Bavaria) – Acquisitions bring total portfolio value up to c. EUR 202,750,000.00 – Both properties occupied by blue-chip tenants on long-term leases Cologne, 27 November 2019 – Diok RealEstate AG (DIOK) just signed the sale and purchase agreements for two office buildings, one being located in the Detmold area (North Rhine-Westphalia), the other in the greater Munich area (Bavaria). The office property in the Detmold area is fully occupied by a high-net-worth tenant. The property extends over nearly 4,800 square metres of lettable area and comes with an adequate number of parking spots. The current annual net rent equals c. EUR 410,000.00. The remaining lease term is about 3.3 years, but includes renewal options for the tenant, who has been in the building since 2001. The office building in the Munich metro area has well over 15,000 square metres of lettable area and superb transportation access. This asset is let to several tenants, among them the two high-net-worth anchor tenants, and has a weighted average lease term (WALT) of around five years. The current annual net rent equals c. EUR 1,800,000.00. Both properties were acquired within the framework of off-market transactions, which are subject to various conditions precedent/subsequent for the time being. Together with the acquisition in Offenbach (Rhine-Main region) already transacted on 18 November 2019, the fair market values of DIOK’s three most recent acquisitions alone add up to EUR 52.4 million and to c. EUR 2,842,000.00 in annual basic rent net of service charges. The weighted average unexpired lease terms (WALT) of the three properties equals 4.5 years overall, whereas the average rent rate is only EUR 7.76 per square metre and month. The acquisition of three properties in Offenbach, in the greater Detmold area and in the Munich metro region brings the total value of the DIOK portfolio up to c. EUR 203 million while the annual net rent approximated EUR 11,750,000.00 and the lettable area around 118,000.00 square metres. The average WALT of the portfolio as a whole amounts to around 5.6 years while the average rent is only EUR 8.52 per square metre and month. Markus Drews, Member of the Board of Diok, said: “By investing in these three new assets, we are widening the risk diversification of our portfolio even further while sustaining a high rate of return. Against this background, we are always seeking and finding promising opportunities to ensure further portfolio growth. In fact, negotiations to secure our next properties are already in an advanced stage. The quality of the tenants and of the buildings included in our portfolio ensure that our cash flow, which is currently spread across more than 45 tenants in 16 locations, remains sustainable.”
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About Diok RealEstate AG Diok RealEstate AG (DIOK) is a property company based in Cologne that specialises in German office real estate. The company’s business focuses on setting up an attractive portfolio of office properties in good to excellent micro-environments of tier two cities. Labour-intensive activities have been outsourced in their entirety to third parties while remaining subject to DIOK’s supervision and control. As an active portfolio and asset manager, DIOK thus achieves a steady capital growth and a positive cash flow from day one. In the medium term, DIOK intends to use its well-filled acquisition pipeline to build up a real estate portfolio worth EUR 1 billion.
27.11.2019 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Diok RealEstate AG |
Kleingedankstraße 11a | |
50677 Köln | |
Germany | |
Phone: | +49 (0)22180149800 |
Internet: | www.diok-realestate.de |
ISIN: | DE000A2NBY22 |
WKN: | A2NBY2 |
Listed: | Regulated Unofficial Market in Frankfurt |
EQS News ID: | 922569 |
End of News | DGAP News Service |