Frankfurt -based listed property company DIC Asset is establishing a new special AIF through its GEG subsidiary on behalf of a club of domestic institutional investors. The fund has a medium-term target volume of approximately €1.6 billion.
The fund already has equity commitments of more than €800 million and a seed portfolio of four properties worth €780 million.
The new fund, which will be the largest investment vehicle by volume in the company’s history, will focus on core properties occupied by blue-chip tenants with long-term lease agreements.
The new fund has helped DIC Asset to exceed its full-year acquisition target of €700 million to €1.1 billion bringing the total to about €1.2 billion for the financial year to date with further transactions expected before the year end.
The four seed properties include the 47,000 sq m Deka Office Hub in Frankfurt, due for completion in 2022 when it will be occupied by Deka Bank, and the 25,700 sq m Wilhelminenhaus in Darmstadt which is occupied by the Darmstadt Regional Council of the State of Hesse.