DIC Asset Management Markus Koch: "We have always shown stability and provide an attractive coupon"
The SDAX-listed property company DIC Asset AG issued its first corporate bond issue. The issue size of up to € 100 million, the subscription period running until 11 May, the coupon is 5.875%. In conversation with fixed-income.org explained CFO Mark Koch, the strategy of the company.
fixed-income.org: In which areas of asset is its activity?
Koch: We are real estate experts, since the IPO, we have significantly expanded the portfolio. Meanwhile, we administer and manage property assets worth over 3 billion euros, of which about € 2 billion on the balance of DIC Asset AG. In parallel, we have asset and property management subsidiary of DIC significantly expanded our onsite that. We are with six offices throughout Germany. We are close to the tenant and on the objects. This business has changed in the last two years very well proven in particular. We have vacancy rates relatively stable hold our own. the objects end of the year compared) in like for like analysis (of real estate holdings at the beginning of the year, with the rental income we have 2010 already 0.5% increase ours. We expect that with the rising rental market, we currently have, in 2011, 2012 and reduce vacancies in 2013 and rental income can increase.
fixed-income.org: Why did you issue a bond?
Koch: We want a part of our expansion of the bond financing to cover. Last year and this year we have capital with a volume of around € 50 million carried out two. Earlier this year we have two long-term leased properties already acquired. They had an investment of more than 100 million €. For the current year, we see further acquisition opportunities in both the retail and the office sector, where we have a focus. In addition to the capital we see the possibility of borrowing to expand our range of financing with the. Traditionally, we use mortgage loans. We work in object-based and portfolio with many housing finance almost exclusively in Germany together. It is non-recourse financing, so there is no unlimited use of the DIC Asset AG. With the bond, we want to be flexible. Because the funding ratio is on the banks very different. There are banks that finance will continue 70 to 75%, other banks finance only 50 to 60% - especially mortgage-oriented banks. The bond allows us to act quickly if they arise cheap shopping. Another timely mortgage debt can we accept about. Our total debt amounted to 1.4 billion euros. With an overall value of up to € 100 million bond issue is a new mosaic-like stone With the entry into the bonds we build a segment, because we want the future as a bond issuer to be active in it. The broader financial base provides us with growth potential. In case of further acquisitions, we can also imagine new bond issues.
fixed-income.org: What Investors say the bond with?
Koch: The bond is aimed at institutional investors, but also to private investors who have a medium-term investment horizon. With our share, we have a stable group of shareholders with institutional investors, private investors have in the real estate stocks in Germany so far, however, sustained not enforced. The bond may be a possibility of making investments in real estate or a real estate company of such a product to allow private investors as well. We want the bond to private investors also known to be wide and up to us, as was the case previously.
fixed-income.org: Why investing in your loan?
Koch: We offer a balanced mix of a stable long-term real estate investment. For behind the cash flows are essentially long-term rental income. In the past we had to quarter with a negative result is not complete. We anticipate that we will continue to succeed in achieving positive results. With rising markets, this should succeed. We have always shown a certain stability and provide an attractive coupon. With 5.875% coupon is much higher than what we pay for mortgage loans, but I think that the company is interesting for us and also allows a high degree of flexibility.
Interview: Christian Schiffmacher.
Of the transaction:
Issuer: DIC Asset AG
Volume: up to 100 million €
Coupon: 5.875%
Issue price: 100.00%
Subscription Period: 5-11. May 2011
IPO: 16 May 2011
Segment: Entry Standard Bond
Denomination: 1,000 €
Internet:
DIC Asset AG · Startseite , boerse-frankfurt.de > Bonds
