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Diok RealEstate AG: Diok RealEstate AG Completes Portfolio Acquisition and Further Successful Lettings
DGAP-News: Diok RealEstate AG / Key word(s): Real Estate/Acquisition – Purchase prices paid for properties in Aachen, Würselen and Neu-Ulm, thereby completing the transactions – Recent lettings achieve full occupancy at properties in Bochum and Ulm Diok RealEstate AG (“Diok”) just fulfilled the purchase agreements it signed in December, February and March for properties in Aachen, Würselen and Neu-Ulm, respectively, and thus successfully completed the transactions. This brings the portfolio of Diok RealEstate AG up to a total of around 70,000 sqm and to a total of c. EUR 6,800,000.00 in annual basic rent net of service charges. The fair market value of the entire portfolio was determined at c. EUR 114,000,000.00 and its rate of return at 5.98% before leverage. The weighted average unexpired lease term (WAULT) of the portfolio equals 5.36 years while the rent average is EUR 8.07/sqm. Meanwhile, the management of the properties scored quite a few successes lately. Full occupancy was achieved in several assets, for instance in Ulm and Bochum. At the same time, Diok is in the process of negotiating the renewal of an anchor tenant’s lease for another 5 years. Once signed, the lease will raise the WALT to 5.93 years, the rate of return to 6.03% and the average rent to EUR 8.15/sqm. Markus Drews, Member of the Board of Diok, commented: “We managed to close the transaction as planned, once again demonstrating our reliable ability to deliver such deals. Considering our well-filled deal pipeline, we can say with confidence that we will continue and speed up our growth trajectory. Our goal of acquiring a high-yield portfolio of high-quality office properties in secondary locations has been vindicated by the running yield, the performance, the risk diversification and other parameters.” Daniel L. Grosch, Member of the Board of Diok, added: “We are also very satisfied with the performance of our proprietary portfolio. What matters from our point of view is to take a professional and sustainable approach to portfolio management. The way to generate long-term value-added in our line of business is through the long-term management of the property stock and the service-oriented interaction with our tenants. It therefore fills us with pride to have concluded the latest lettings and lease renewals, and would like to take the opportunity to thank our service providers sincerely for the great transactions closed.”
Contact: 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.
02.05.2019 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English |
Company: | Diok RealEstate AG |
Von-Werth-Str. 1 | |
50670 Köln | |
Germany | |
Phone: | +49 (0)22180149800 |
Internet: | www.diok-realestate.de |
ISIN: | DE000A2NBY22 |
WKN: | A2NBY2 |
Listed: | Regulated Unofficial Market in Frankfurt |
EQS News ID: | 806307 |
End of News | DGAP News Service |