Obligation DIC Asset AG 3.25% ( DE000A2GSCV5 ) en EUR

DIC Asset AG

102.03 % ⇌

Allemagne

DE000A2GSCV5 ( en EUR )

3.25% par an ( paiement annuel )

10/07/2022 - Obligation échue

Prospectus brochure de l'obligation DIC Asset AG DE000A2GSCV5 en EUR 3.25%, échue

1 000 EUR

180 000 000 EUR

L'Obligation émise par DIC Asset AG ( Allemagne ) , en EUR, avec le code ISIN DE000A2GSCV5, paye un coupon de 3.25% par an.
Le paiement des coupons est annuel et la maturité de l'Obligation est le 10/07/2022

DIC Asset AG
(a stock corporation incorporated under the laws of the Federal Republic of Germany)
July 5, 2017
Euro [·] [·] per cent. Notes due July 11, 2022 (the "Notes")
Issue price: 100 per cent.
ISIN: DE000A2GSCV5
This prospectus (the "Prospectus") constitutes a prospectus within the meaning of Article 5.3 of the Directive
2003/71/EC of the European Parliament and of the Council of November 4, 2003 (as amended, inter alia, by
Directive 2010/73/EU of the European Parliament and of the Council of November 24, 2010, the "Prospectus
Directive"). This Prospectus together with all documents incorporated by reference will be published in elec-
tronic form together with all documents incorporated by reference on the website of the Luxembourg Stock
Exchange (www.bourse.lu). This Prospectus has been approved by the Commission de Surveillance du Secteur
Financier (the "CSSF") of the Grand Duchy of Luxembourg ("Luxembourg") in its capacity as competent au-
thority under the Luxembourg law relating to prospectuses for securities (Loi relative aux prospectus pour val-
eurs mobilières; the "Luxembourg Prospectus Act") transforming the Prospectus Directive into law in Lux-
embourg. According to Article 7 (7) of the Luxembourg Prospectus Act, by approving this Prospectus the CSSF
gives no undertaking as to the economic and financial soundness of the transaction and the quality or solvency
of the Issuer. The Issuer has requested the CSSF to provide the competent authority in the Federal Republic of
Germany ("Germany") with a certificate of approval attesting that this Prospectus has been drawn up in ac-
cordance with the Luxembourg Prospectus Act (the "Notification"). The Issuer may request the CSSF to pro-
vide the competent authorities in additional host member states within the European Economic Area ("EEA")
with similar certificates of approval.
Application has been made to list the Notes on the official list of the Luxembourg Stock Exchange and admit
the Notes to trading on the regulated market "Bourse de Luxembourg" operated by the Luxembourg Stock Ex-
change which is a regulated market appearing on the list of regulated markets issued by the European Securi-
ties and Markets Authority (ESMA) pursuant to Directive 2004/39/EC of April 21, 2004 on markets in financial
instruments, as amended.
The Notes will initially be represented by a temporary global note in bearer form without interest coupons,
which will be exchangeable for a permanent global note in bearer form without interest coupons, not earlier
than 40 days after the Issue Date, upon certification as to non-U.S. beneficial ownership. The Notes are issued
in bearer form with a denomination of EUR 1,000 each.
The aggregate principal amount and interest rate of the Notes, the issue proceeds and the issue yield will be
included in the Pricing Notice (as defined in the section entitled "Subscription, Sale and Offer of the Notes" and
set out herein) which will be filed with the CSSF and published on the website of the Luxembourg Stock Ex-
change (www.bourse.lu).
The offer, sale and delivery of the Notes and the distribution of this Prospectus in certain jurisdictions is re-
stricted by law. Persons into whose possession this Prospectus comes are required by the Issuer and the Joint
Lead Managers to inform themselves about and to observe any such restrictions. In particular, the Notes have
not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securi-
ties Act") and are subject to U.S. tax law requirements. Subject to certain limited exceptions, the Notes may
not be offered, sold or delivered within the United States of America (the "United States") or to U.S. persons.
Joint Lead Managers und Joint Bookrunners
Bankhaus Lampe
Citigroup

CONTENT
I.
SUMMARY..............................................................................................................1
II.
ZUSAMMENFASSUNG........................................................................................... 18
III.
RISK FACTORS .................................................................................................... 36
1.
RISKS RELATING TO THE ISSUER AND DIC ASSET..................................................... 36
1.1
Market- and industry-specific risks ........................................................................... 36
1.2
Issuer-related risks ................................................................................................ 39
1.3
Risks arising from the group structure ...................................................................... 48
2.
RISKS RELATING TO THE NOTES ............................................................................. 49
IV.
IMPORTANT INFORMATION ................................................................................ 54
1.
RESPONSIBILITY STATEMENT.................................................................................. 54
2.
NOTICE................................................................................................................. 54
V.
GENERAL INFORMATION ABOUT THE ISSUER ..................................................... 56
1.
FORMATION, COMPANY NAME AND HISTORY OF THE ISSUER...................................... 56
2.
REGISTERED OFFICE, FISCAL YEAR AND TERM OF THE ISSUER ................................... 56
3.
ISSUER OBJECT ..................................................................................................... 56
4.
STRUCTURE (SCOPE OF CONSOLIDATION) AND EQUITY INTERESTS OF DIC ASSET ....... 57
4.1
Structure (scope of consolidation) ............................................................................ 57
4.2
Selected equity interest .......................................................................................... 59
5.
AUDITOR .............................................................................................................. 60
6.
MARKETS .............................................................................................................. 60
6.1
Macroeconomic development and development in the German commercial real estate
market ................................................................................................................. 60
6.2
Competitors .......................................................................................................... 60
7.
BUSINESS............................................................................................................. 61
7.1
Overview .............................................................................................................. 61
7.2
Business segments................................................................................................. 62
8.
OPERATING AREAS................................................................................................. 65
8.1
Overview .............................................................................................................. 65
8.2
Real Estate Management division ............................................................................. 65
8.3
Investment division ................................................................................................ 66
8.4
Portfolio Management ............................................................................................. 66
8.5
Fund Management.................................................................................................. 66
8.6
Group Management division .................................................................................... 66
9.
REAL ESTATE PORTFOLIO OF DIC ASSET AS OF MARCH 31, 2017 ................................ 67
9.1
Overview of the Real Estate Portfolio ........................................................................ 67
9.2
Regional breakdown of the portfolio.......................................................................... 68
9.3
Types of use and tenant structure ............................................................................ 69
9.4
Vacancy rate ......................................................................................................... 69
9.5
Significant changes in the Real Estate Portfolio of DIC Asset after March 31, 2017 ......... 70
9.6
Upcoming changes in the segment reporting ............................................................. 70
10.
INVESTMENTS ....................................................................................................... 70
10.1
Recent Investments................................................................................................ 70
10.2
Future investments ................................................................................................ 70
10.3
Other material property, plant and equipment ........................................................... 70
11.
EMPLOYEES........................................................................................................... 70
12.
INSURANCE........................................................................................................... 71
13.
MATERIAL AGREEMENTS ......................................................................................... 71
14.
LITIGATION........................................................................................................... 71
15.
FINANCING STRUCTURE OF DIC ASSET .................................................................... 72
16.
GOVERNING BODIES OF THE ISSUER ....................................................................... 73
16.1
Overview .............................................................................................................. 73
16.2
Management Board ................................................................................................ 73
16.3
Supervisory Board.................................................................................................. 74
16.4
Corporate governance ............................................................................................ 77
17.
SIGNIFICANT SHAREHOLDERS ................................................................................ 79
i

18.
TREND INFORMATION............................................................................................. 80
19.
SIGNIFICANT CHANGE IN FINANCIAL OR TRADING POSITION ..................................... 80
20.
SHARE CAPITAL ..................................................................................................... 80
21.
SELECTED FINANCIAL INFORMATION ....................................................................... 80
VI.
OFFER, SUBSCRIPTION AND SALE OF THE NOTES ............................................... 85
1.
OFFER OF THE NOTES ............................................................................................ 85
1.1
Private placement .................................................................................................. 85
1.2
Public offer............................................................................................................ 85
1.3
Determination of offer volume and pricing details....................................................... 85
1.4
Conditions of the offer ............................................................................................ 86
1.5
Confirmation of offers placed by, and allotments to, investors ..................................... 86
1.6
Delivery of the Notes to investors............................................................................. 86
1.7
Costs and expenses relating to the offer ................................................................... 86
2.
REASON FOR THE OFFER AND USE OF PROCEEDS...................................................... 86
3.
SUBSCRIPTION OF THE NOTES ................................................................................ 86
4.
LISTING AND ADMISSION TO TRADING .................................................................... 87
VII.
SELLING RESTRICTIONS ..................................................................................... 88
VIII.
GENERAL INFORMATION/DOCUMENTS INCORPORATED BY REFERENCE ............. 91
1.
AUTHORIZATION ................................................................................................... 91
2.
CLEARING AND SETTLEMENT................................................................................... 91
3.
SECURITIES IDENTIFICATION NUMBERS................................................................... 91
4.
YIELD ................................................................................................................... 91
5.
INCORPORATION BY REFERENCE ............................................................................. 91
6.
DOCUMENTS ON DISPLAY ....................................................................................... 92
IX.
TERMS AND CONDITIONS OF THE NOTES............................................................ 93
X.
TAXATION ......................................................................................................... 112
1.
RESPONSIBILITY OF THE ISSUER FOR THE WITHHOLDING OF TAXES AT SOURCE ....... 112
2.
FEDERAL REPUBLIC OF GERMANY .......................................................................... 112
2.1
Income Taxation of German Tax Residents.............................................................. 112
2.2
Income Taxation of non-German tax residents......................................................... 115
3.
LUXEMBOURG...................................................................................................... 116
3.1
Non-resident holders of Notes................................................................................ 116
3.2
Resident holders of Notes...................................................................................... 116
4.
FOREIGN ACCOUNT TAX COMPLIANCE ACT ............................................................. 117
5.
FINANCIAL TRANSACTION TAX .............................................................................. 117
XI.
NAMES AND ADDRESSES ................................................................................... 118
ii

I.
SUMMARY
Summaries are made up of disclosure requirements known as "Elements". These Elements are
numbered in sections A-E (A.1 E.7).
This summary contains all the Elements required to be included in a summary for this type of se-
curities and Issuer. Because some Elements are not required to be addressed, there may be gaps
in the numbering sequence of the Elements.
Even though an Element may be required to be inserted in the summary because of the type of
securities and Issuer, it is possible that no relevant information can be given regarding the Ele-
ment. In this case a short description of the Element is included in the summary with the mention
of "not applicable".
Section A Introduction and warnings
Element
Description of
Disclosure requirement
Element
A.1
Warning
This summary should be read as an introduction to this Prospec-
tus.
Any decision to invest in the Notes should be based on consider-
ation of this Prospectus as a whole by the investor.
Where a claim relating to the information contained in this Pro-
spectus is brought before a court, the plaintiff investor might,
under the national legislation of its member state, have to bear
the costs of translating this Prospectus before the legal proceed-
ings are initiated.
Civil liability attaches only to those persons who have tabled this
summary including translations thereof (if any), but only if this
summary is misleading, inaccurate or inconsistent when read
together with the other parts of this Prospectus or it does not
provide, when read together with the other parts of this Prospec-
tus, key information in order to aid investors when considering
whether to invest in the Notes.
A.2
Consent to the
Not applicable. The Notes are only offered to the public by the
use of the pro-
Issuer and not by the Joint Lead Managers or any other financial
spectus
intermediary.
1

Section B -- Issuer
Element
Description
Disclosure requirement
B.1
Legal and
DIC Asset AG
commercial
name
B.2
Domicile, legal
The Issuer is a stock corporation (Aktiengesellschaft) incorpo-
form, legisla-
rated and governed under the laws of the Federal Republic of
tion, country of Germany with its domicile in Frankfurt am Main.
incorporation
B.4b
Trends
Not applicable. The Issuer is not aware of any trends affecting
the Issuer and the industries in which it operates.
B.5
Description of
The Issuer's group consists of the Issuer as a holding company
the group and
and its fully consolidated direct and indirect subsidiaries as well
the Issuer's
as its unconsolidated participations ("DIC Asset").
position within
the group
B.9
Profit forecast
or estimate
Not applicable. No profit forecasts or estimates are made.
B.10
Qualifications
Not applicable. The auditors have issued unqualified audit re-
in the audit re-
ports for the consolidated financial statements for the fiscal
port
years 2015 and 2016.
2

B.12
Selected his-
The following tables contain selected financial information relat-
torical key fi-
ing to the Issuer. The information has been extracted from the
nancial infor-
Issuer's audited consolidated financial statements as of Decem-
mation
ber 31, 2016 (including the comparable information as of De-
cember 31, 2015 contained therein) as well as the Issuer's
unaudited quarterly statement as of March 31, 2017 (including
the comparable information as of March 31, 2016 contained
therein in relation to the consolidated profit and loss account
and the consolidated statement of cash flow) all of which were
prepared in accordance with International Financial Reporting
Standards (IFRS) as adopted in the European Union.
Consolidated income statement
in '000
Fiscal year
3-month period ended
March 31,
2015
2016
2016
2017
(audited)
(unaudited)
Total income..............................................
372,387
473,794
278,255
106,864
Total expenses..........................................
-296,116
-396,464
-252,613
-90,663
Net rental income.....................................
120,450
94,544
23,478
25,670
Profit on disposal of investment
property....................................................
14,917
23,188
9,873
2,198
Net operating profit before financing
activities (EBIT)........................................
76,270
77,330
25,642
16,201
Profit/loss before tax...............................
24,148
-23,395
15,368
9,300
Profit/loss for the period*........................
20,716
-29,386
11,801
7,648
* The effect from refinancing existing loans in the Commercial Portfolio in December 2016 has a non-recurring
effect of EUR -56.3 million on profit/loss. Without the non-recurring effects of the early refinancing, adjusted
profit/loss are EUR 26.9 million for the fiscal year 2016.
Consolidated balance sheet:
in '000
December
December
March
31,
31,
31,
2015
2016
2017
(audited)
(audited)
(unaudited)
Assets
Total non-current assets..................................
1,961,544
1,908,632
1,764,877
Total current assets.........................................
494,525
486,916
618,426
Total assets......................................................
2,456,069
2,395,548
2,383,303
in '000
December
December
March
31,
31,
31,
2015
2016
2017
(audited)
(audited)
(unaudited)
Equity and liabilities
Equity
Total shareholders' equity...............................
787,073
753,455
760,952
Total equity......................................................
792,083
756,973
764,251
Liabilities
Total non-current liabilities.............................
1,342,177
1,197,215
1,142,627
Total current liabilities.....................................
321,809
441,360
476,425
Total liabilities.................................................
1,663,986
1,638,575
1,619,052
Total equity and liabilities...............................
2,456,069
2,395,548
2,383,303
3

Consolidated statements of cash flow
in '000
Fiscal year
3-month period ended
March 31,
2015
2016
2016
2017
(audited)
(unaudited)
Cash flow from operating activities.........
53,015
33,948
6,605
10,136
Cash flow from investing activities .........
169,310
-239,052
-73,513
5,161
Cash flow from financing activities..........
-115,156
152,928
-14,094
-23,623
Cash and cash equivalents as at 1 Janu-
97,421
204,590
204,590
152,414
ary............................................................
Cash and cash equivalents at the end of
204,590
152,414
123,588
144,088
the period.................................................
Additional Key Figur
In the Issuer's view, the key performance indicator described in
this section constitute a further important indicator for measur-
ing the operating and financial performance of DIC's business.
DIC Asset believes that the additional performance measure
Funds from operations (FFO) ("Performance Measure") is of
use for potential investors.
Funds from operations are operating income from property man-
agement, before depreciation, tax and profits from sales and
project developments ("FFO").
DIC Asset believes that this Performance Measure is useful in
evaluating DIC Asset's operating performance, the net value of
DIC Asset's property portfolio, the level of DIC Asset's indebted-
ness and of cash flows generated by DIC's business. However,
the Performance Measure is not recognized as a measure under
IFRS and should not be considered as a substitute for figures on
result before taxes, net earnings, cash flow from/used in operat-
ing activities or other income statement or cash flow data, as
determined in accordance with IFRS, or as a measure of profita-
bility or liquidity.
The Performance Measure does not necessarily indicate whether
cash flow will be sufficient or available for DIC Asset's cash re-
quirements, nor whether any such measure is indicative of DIC
Asset's historical operating results. The Performance Measure is
not meant to be indicative of future results. Because not all
companies calculate these measures and figures in the same
way, DIC Asset's presentation of the Performance Measure is not
necessarily comparable with similarly titled measures used by
other companies.
Funds from Operations, FFO
Funds from operations is a measure of liquidity for real estate
companies. The following table shows the calculation of FFO for
the period shown:
4

Fiscal year
3-month period
ended March 31,
2015
2016
2016
2017
In EUR million
(audited, unless
(unaudited)
specified otherwise)
Net rental income
120.5
94.6
23.5
25.7
Administrative expenses
-8.8
-10.7
-2.2
-3.1
Personnel expenses
-14.9
-16.1
-3.9
-4.4
Other
operating
in-
0.1
0.2
0.2
0.0
come/expenses
Real estate management 7.3
21.5
7.4
3.9
fees
Share of the profit or 3.9
5.4
0.9
1.6
loss of associates with-
out project develop-
ments and sales
Net
interest
income
-59.0
-47.9
-11.4
-7.9
(unaudited)*
Funds from operations
49.0
47.0
14.5
15.8
(unaudited)
*The net interest income is for the fiscal year 2016 calculated by adjusting the
interest income and interest expenses for non-recurring refinancing expenses.
No material
There has been no material adverse change in the prospects of
adverse change the Issuer since December 31, 2016.
statement
Significant
Not applicable. There have been no significant changes in the
changes in the
financial or trading position of the Issuer since March 31, 2017.
financial or
trading posi-
tion
B.13
Recent events
Not applicable. There have not been any recent events in the
Issuer's business which are materially relevant for the evaluation
of the Issuer's solvency.
B.14
Dependence
See B. 5
upon other en-
tities within
The Issuer is a holding company. Therefore, its earnings situa-
the Group
tion is materially influenced by the interest and participation in-
come of affiliated companies.
B.15
Principal activi- The Issuer is a real estate holding company with an exclusive
ties
investment focus on German commercial real estate and main-
ly in the area of office and retail real estate. In its commercial
portfolio the Issuer invests directly in real estate and manages
and optimizes its portfolio through its in-house asset and
property management (the "Commercial Portfolio") and in
its co-investments segment, the Issuer plans and structures in
particular funds and investment structures for institutional in-
vestors (the "Co-Investments"). The Issuer is a holding
company which does not directly hold its real estate but exclu-
5

sively holds it via affiliated and property companies. The Issuer
centralizes all management functions for DIC Asset, in particu-
lar, determination of the company's strategy, communication
with investors and reporting, the financing of the company and
real estate, risk management as well as controlling the real
estate management.
B.16
Major share-
The following table shows the major shareholders of the Issuer
holders
which are direct holders of its capital:
Name of the shareholder
in %1)
Deutsche Immobilien Chancen Group
32.2
Free Float
67.8
thereof:
solvia
5.1
RAG Foundation
4.8
Old Mutual plc
3.0
total:
100.0
1) with rounding differences.
B.17
Credit ratings
Not applicable. The Issuer and its debt securities are not rated.
assigned to the
Issuer or its
debt securities
6

Section C -- Securities
Element
Description
Disclosure requirement
C.1
Type and class The notes (the "Notes") bear a fixed rate of interest.
of securities
being of-
fered/security ISIN: DE000A2GSCV5; German Securities Code (WKN): A2GSCV.
identification
numbers
C.2
Currency
Euro.
C.5
Restrictions on The Notes are freely transferable.
free transfera-
bility
C.8
Rights at-
Rights attached to the Notes:
tached to se-
curi-
ties/ranking of The holders of the Notes ("Holders") have the right to receive
the securi-
annual fixed-rate interest payments and the payment of the
ties/limitation
principal amount on the final maturity date.
s to the rights
attached to
Status of the Notes:
the securities
The Notes constitute direct, unconditional, unsecured and un-
subordinated obligations of the Issuer ranking pari passu among
themselves and pari passu with all other unsecured and unsub-
ordinated present and future obligations of the Issuer, unless
such other obligations are accorded priority by mandatory provi-
sions of law.
Negative Pledge:
The Issuer undertakes, so long as the Notes are outstanding, not
to create any mortgage, pledge, or other security interest (each
such right a "Security") over the whole or any part of its under-
takings, assets or revenues, present or future, to secure any
capital market indebtedness or to secure any guarantee or in-
demnity given by the Issuer or any of its subsidiaries in respect
of any capital market indebtedness of another person, without,
at the same time securing all amounts payable under the Notes
either with identical Security or providing all amounts payable
under the Notes such other Security as shall be approved by an
independent accounting firm of internationally recognized stand-
ing as being equivalent security. This applies subject to specific
exceptions.
Taxes:
All amounts payable under the Notes shall be made by withhold-
ing or deducting, if applicable, at source for or on account of any
present or future taxes, other duties, assessments or govern-
mental charges of whatever nature imposed, levied, collected,
withheld or assessed by way of withholding or deduction at
source in, by or within the Federal Republic of Germany or any
political subdivision or any tax authority thereof or therein in-
7