DIC launches Office Balance IV fund

German asset manager DIC Asset has launched its fifth institutional real estate fund, DIC Office Balance IV fund.

The fund, which will invest in German offices, has a target size of up to €350m. Around a third of the target capital has already been raised, according to DIC. The fund will target core and core plus commercial properties - mainly multi-tenant assets - with a focus on offices in metropolitan regions in Germany balanced by regional diversification. DIC Asset declined to comment on the target annual return.

Last month (April), DIC Asset sold a real estate portfolio of 10 offices to Cording Real Estate Group on behalf of an unnamed institutional investor for €143m. The properties, which total 100,000 sqm, are all located in A and B cities in Germany, such as Hamburg, Cologne and Mannheim.

‘The continuous optimization and ongoing development of our commercial portfolio represents one of our strategic core objectives,’ said Aydin Karaduman, CEO of DIC Asset AG in a statement. ‘The purpose of this forward-looking sale in a favourable market environment is to streamline our portfolio in a sustainable manner,’ he added.

The annualized rental income generated by the sold properties is around €11m. Following the sale, DIC has hit two-thirds of its sales target for 2017, it said.

Combined, DIC’s investment funds have €1.3b of AUM.