Obligation DIC Asset AG 3.5% ( DE000A2NBZG9 ) en EUR

DIC Asset AG

101.049 % ⇌

Allemagne

DE000A2NBZG9 ( en EUR )

3.5% par an ( paiement annuel )

02/10/2023 - Obligation échue

Prospectus brochure de l'obligation DIC Asset AG DE000A2NBZG9 en EUR 3.5%, échue

1 000 EUR

150 000 000 EUR

L'Obligation émise par DIC Asset AG ( Allemagne ) , en EUR, avec le code ISIN DE000A2NBZG9, paye un coupon de 3.5% par an.
Le paiement des coupons est annuel et la maturité de l'Obligation est le 02/10/2023

DIC Asset AG
(a stock corporation incorporated under the laws of the Federal Republic of Germany)
September 26, 2018
Euro [] [] per cent. Notes due October 2, 2023 (the " Notes")
Issue price: 100 per cent.
ISIN: DE000A2NBZG9
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 approval of the CSSF does not extend to any references to the private placement of the
Notes as further described in this Prospectus. 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 accordance with the Luxembourg Prospectus Act (the "Notification"). The
Issuer may request the CSSF to provide 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 2014/65/EU of May 25, 2014 on markets in financial
instruments, as amended ("MiFID II").
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 "General Information, Subscription and Sale of
the Notes" and set out herein) which will be filed with the CSSF and published on the website of the Luxem-
bourg Stock Exchange (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
Bankhaus Lampe
Citigroup

CONTENT
I.
SUMMARY ...............................................................................................................3
III.
RISK FACTORS ...................................................................................................... 39
1.
RISKS RELATING TO THE ISSUER AND DIC ASSET ..................................................... 39
1.1
Market- and industry-specific risks ........................................................................... 39
1.2
Issuer-related risks ................................................................................................ 42
1.3
Risks arising from the group structure ...................................................................... 51
2.
RISKS RELATING TO THE NOTES ............................................................................. 52
IV.
IMPORTANT INFORMATION ..................................................................................... 58
1.
RESPONSIBILITY STATEMENT.................................................................................. 58
2.
IDENTIFICATION OF MIFID II PRODUCT GOVERNANCE / RETAIL INVESTORS,
PROFESSIONAL INVESTORS AND ELIGIBLE COUNTERPARTIES TARGET MARKET............ 58
3.
NOTICE................................................................................................................. 58
V.
GENERAL INFORMATION ABOUT THE ISSUER ............................................................ 60
1.
FORMATION, COMPANY NAME AND HISTORY OF THE ISSUER...................................... 60
2.
REGISTERED OFFICE, FISCAL YEAR AND TERM OF THE ISSUER ................................... 60
3.
ISSUER OBJECT ..................................................................................................... 60
4.
STRUCTURE (SCOPE OF CONSOLIDATION) AND EQUITY INTERESTS OF DIC ASSET ....... 61
4.1
Structure (scope of consolidation) ............................................................................ 61
4.2
Equity interest in TLG ............................................................................................. 64
5.
AUDITOR .............................................................................................................. 65
6.
MARKETS .............................................................................................................. 65
6.1
Macroeconomic development and development in the German commercial real estate
market ................................................................................................................. 65
6.2
Competitors .......................................................................................................... 65
7.
BUSINESS............................................................................................................. 66
7.1
Overview .............................................................................................................. 66
7.2
Overview of Real Estate Portfolio.............................................................................. 67
7.3
Business segments................................................................................................. 68
8.
OPERATING AREAS................................................................................................. 73
8.1
Overview .............................................................................................................. 73
8.2
Real Estate Management division ............................................................................. 73
8.3
Investment division ................................................................................................ 74
8.4
Portfolio Management ............................................................................................. 74
8.5
Fund Management.................................................................................................. 74
8.6
Group Management division .................................................................................... 74
9.
INVESTMENTS ....................................................................................................... 74
9.1
Recent Investments................................................................................................ 74
9.2
Future investments ................................................................................................ 75
9.3
Other material property, plant and equipment ........................................................... 75
10.
EMPLOYEES........................................................................................................... 75
11.
INSURANCE........................................................................................................... 75
12.
MATERIAL AGREEMENTS ......................................................................................... 76
13.
LITIGATION........................................................................................................... 76
14.
FINANCING STRUCTURE OF DIC ASSET .................................................................... 76
15.
GOVERNING BODIES OF THE ISSUER ....................................................................... 77
15.1
Overview .............................................................................................................. 77
15.2
Management Board ................................................................................................ 77
15.3
Supervisory Board.................................................................................................. 79
15.4
Corporate governance ............................................................................................ 82
16.
SIGNIFICANT SHAREHOLDERS ................................................................................ 84
17.
TREND INFORMATION............................................................................................. 84
18.
SIGNIFICANT CHANGE IN FINANCIAL OR TRADING POSITION ..................................... 85
19.
SHARE CAPITAL ..................................................................................................... 85
20.
SELECTED FINANCIAL INFORMATION ....................................................................... 86
VI.
GENERAL INFORMATION, SUBSCRIPTION AND SALE OF THE NOTES ............................ 92
i

1.
AUTHORIZATION ................................................................................................... 92
2.
CLEARING AND SETTLEMENT................................................................................... 92
3.
SECURITIES IDENTIFICATION NUMBERS................................................................... 92
4.
SALE OF THE NOTES .............................................................................................. 92
4.1
Private placement .................................................................................................. 92
4.2
Public offer............................................................................................................ 92
4.3
Determination of offer volume and pricing details....................................................... 93
4.4
Conditions of the offer ............................................................................................ 93
4.5
Confirmation of offers placed by, and allotments to, investors ..................................... 93
4.6
Delivery of the Notes to investors............................................................................. 93
4.7
Costs and expenses relating to the offer ................................................................... 93
5.
REASON OF THE OFFER AND USE OF PROCEEDS........................................................ 93
6.
SUBSCRIPTION OF THE NOTES ................................................................................ 93
7.
YIELD ................................................................................................................... 94
8.
LISTING AND ADMISSION TO TRADING .................................................................... 94
VII.
SELLING RESTRICTIONS ......................................................................................... 95
VIII.
DOCUMENTS INCORPORATED BY REFERENCE............................................................ 98
1.
INCORPORATION BY REFERENCE ............................................................................. 98
2.
DOCUMENTS ON DISPLAY ....................................................................................... 99
IX.
TERMS AND CONDITIONS OF THE NOTES ............................................................... 100
X.
TAXATION ........................................................................................................... 119
1.
RESPONSIBILITY OF THE ISSUER FOR THE WITHHOLDING OF TAXES AT SOURCE ....... 119
2.
FEDERAL REPUBLIC OF GERMANY .......................................................................... 119
2.1
Income Taxation of German Tax Residents.............................................................. 119
2.2
Income Taxation of non-German tax residents......................................................... 122
2.3
Inheritance and Gift Tax ....................................................................................... 123
2.4
Other Taxes ........................................................................................................ 123
3.
LUXEMBOURG...................................................................................................... 123
3.1
Non-resident holders of Notes................................................................................ 123
3.2
Resident holders of Notes...................................................................................... 123
4.
FOREIGN ACCOUNT TAX COMPLIANCE ACT ............................................................. 124
5.
FINANCIAL TRANSACTION TAX .............................................................................. 124
XI.
NAMES AND ADDRESSES ...................................................................................... 126
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.
3

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
Not applicable. No profit forecasts or estimates are made.
or estimate
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 2016 and 2017.
4

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, 2017 (including the comparable information as of De-
cember 31, 2016 contained therein) as well as the Issuer's
unaudited condensed interim consolidated financial statement as
of June 30, 2018 (including the comparable information as of
June 30, 2017 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 Europe-
an Union.
Consolidated income statement
in '000
Fiscal year
6-month period ended
June 30,
2016
2017
2017
2018
(audited)
(unaudited)
Total income..............................................
473,794
381,883
245,276
124,328
Total expenses..........................................
-396,464
-305,316
-207,474
-88,535
Net other income......................................
107
49
41
-115
Net rental income.....................................
94,544
93,069
50,361
42,486
Profit
on
disposal
of
investment
23,188
25,482
10,822
11,107
property....................................................
Net operating profit before financing
77,330
76,567
37,802
35,793
activities ................................................
Profit/loss before tax...............................
-23,395
70,477
23,257
27,471
Profit/loss for the period*........................
-29,386
64,412
19,983
23,936
* 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
June
31,
31,
30,
2016
2017
2018
(audited)
(audited)
(unaudited)
Assets
Total non-current assets..................................
1,908,632
1,955,582
2,008,364
Total current assets.........................................
486,916
385,696
418,978
Total assets......................................................
2,395,548
2,341,278
2,427,342
Equity and liabilities
Equity
Total shareholders' equity...............................
753,455
825,289
826,172
Total equity......................................................
756,973
828,913
829,682
Liabilities
Total non-current liabilities.............................
1,197,215
1,122,906
1,236,013
Total current liabilities.....................................
441,360
389,459
361,647
Total liabilities.................................................
1,638,575
1,512,365
1,597,660
Total equity and liabilities...............................
2,395,548
2,341,278
2,427,342
Consolidated statements of cash flow
in '000
Fiscal year
6-month period ended
June 30,
2016
2017
2017
2018
(audited)
(unaudited)
Cash flow from operating activities.........
33,948
56,523
23,635
34,634
Cash flow from investing activities .........
-239,052
37,427
133,482
27,320
Cash flow from financing activities..........
152,928
-44,367
-135,445
27,786
Cash and cash equivalents as at 1 Janu-
204,590
152,414
152,414
201,997
ary............................................................
Cash and cash equivalents at the end of
152,414
201,997
174,086
292,125
the period.................................................
5

Additional Key Figure
In the Issuer's view, the key performance indicator described in
this section constitutes 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
The following table shows the calculation of FFO for the period
shown:
Fiscal year
6-month period
ended June 30,
2016
2017
2017
2018
In EUR million
(audited, unless
(unaudited)
specified otherwise)
Net rental income
94.6
93.1
50.4
42.5
Administrative expenses
-10.7
-12.8
-6.0
-5.9
Personnel expenses
-16.1
-18.1
-9.3
-9.3
Other
operating
in-
0.2
0.2
0.2
-0.1
come/expenses
Real estate management
21.5
20.8
7.8
12.2
fees
Share of the profit or
5.4
11.8
3.3
11.6
loss of associates with-
6

out
project
develop-
ments and sales
Net
interest
income
-47.9
-34.8
-16.6
-19.0
(unaudited)*
Funds from operations
47.0
60.2
29.8
32.0
(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, 2017.
statement
Significant
Not applicable. There have been no significant changes in the
changes in the
financial or trading position of the Issuer since June 30, 2018.
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 company with an exclusive invest-
ties
ment focus on German commercial real estate and mainly in
the area of office and retail real estate. In its commercial port-
folio the Issuer invests directly in real estate and manages and
optimizes its portfolio through its in-house asset and property
management (the "Commercial Portfolio"), plans and struc-
tures funds and investment structures for institutional inves-
tors (the "Funds"), invests in equity investments and project
developments and services third-party properties (the "Other
Investments"). The Issuer is a holding company which does
not directly hold its real estate but exclusively holds it via affil-
iated and property companies. The Issuer centralizes all man-
agement functions for DIC Asset, in particular, 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 manage-
ment.
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
30.2
RAG Foundation
10.0
Free Float
59.8
total:
100.0
7

1) Rounded and according to the last voting rights announcement in
March 2018.
B.17
Credit ratings
Not applicable. The Issuer and its debt securities are not rated.
assigned to the
Issuer or its
debt securities
8

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 offered
ISIN: DE000A2NBZG9 / German Securities Code (WKN):
/security iden-
tification num-
A2NBZG
bers
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-
The holders of the Notes ("Holders") have the right to receive
ties/ranking of
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-
9