Germany's Dic Asset has acquired two retail properties in Bremen and Chemnitz in Central and Northern Germany from a joint venture of Area Property Partners and Rida Development Corporation for around EUR 108 mln.

Dic Asset said the deal marks its re-entry as a buyer in the investment market. 'This transaction is the first of a series of steps for achieving growth,' said Ulrich Höller, CEO of Dic Asset. 'With this purchase, we are strengthening our Funds From Operations (FFO) with two fully-leased properties with high-quality, a secure long-term cash flow and an above-average rental yield.' FFO contribution is expected to amount to more than EUR 3 mln this year, the company added.

Jones Lang LaSalle brokered the deal.

The two properties, situated in prime locations, have a combined retail floor space of 49,000 m2 and are fully let to Galeria Kaufhof with an average term of 11.5 years. The annual rental income of EUR 7.3 mln equates to a rental yield in relation to the investment purchase price of nearly 7%.

The closing and the transfer of ownership of the two properties is expected to take place in the beginning of the second quarter of 2011. The deal is being financed with an unnamed German real-estate mortgage lender on a long-term basis for up to 10 years.