DIC Asset has sold the Bienenkorbhaus on Frankfurt鈥檚 Zeil shopping boulevard to RFR Holding for around EUR 75 mln in an off-market deal. The sales price was above book value and above the market value determined in late 2011, the company said in a press statement.
DIC Asset has sold the Bienenkorbhaus on Frankfurt鈥檚 Zeil shopping boulevard to RFR Holding for around EUR 75 mln in an off-market deal. The sales price was above book value and above the market value determined in late 2011, the company said in a press statement.
According to well-informed sources, the book value was EUR 70 mln and the sales price EUR 73 mln, which would generate a profit of EUR 3 mln. The deal is believed to reflect a net initial yield of 5.5%.
DIC Asset acquired the building in 2004 in a 50-50 joint venture with Morgan Stanley Real Estate Fund (MSREF) as part of the real estate portfolio of Frankfurter Sparkasse, which included 57 properties in Frankfurt. DIC became the sole owner of the property in October 2011 after taking over the remaining 50% stake from MSREF.
The sale will help DIC Asset to significantly roll back its debt ratio. Following the formal transfer, which is scheduled for end-2012, the company will repay approximately EUR 50 mln to the underwriting bank.
'DIC will achieve a significant earnings contribution for 2012 through this sale and realise another major step toward a stronger equity position in the medium term by repaying the bank debt,' said CEO Ulrich H枚ller.
