Frankfurt-listed property company DIC Asset AG has won €117 million of capital investment from German institutional investors for its debut fund.
DIC, which has been publicly-listed on Frankfurt’s stock exchange since 2006, said it was seeking further investors for its open-ended core vehicle, DIC Office Balance Fund I, as it also published solid third quarter results today.
The firm is transferring €211 million of its €2.2 billion assets under management into the fund, which began operations on 15 October. The assets are core and core-plus properties in metropolitan regions throughout Germany.
The move to raise a fund has expanded DIC’s investor base, though DIC is retaining a 20 percent stake in the vehicle and it also serves to underline how German institutional investors heavily favour core assets at this point in Germany’s economic expansion. German pension funds, foundations, insurance companies and family offices are all investors.
Ulrich Höller, chairman of the management board, said: “The successful launch of our debut fund marks the starting point for new growth in recovering markets,” said.
DIC was established in 2002, with Morgan Stanley a significant minority shareholder. Its portfolio is split into three segments: Core plus, value added, and opportunistic co-investments.