German listed real estate company DIC Asset has announced that its five-year unsubordinated corporate bond with a volume of up to EUR 100 mln will pay an interest rate of 5.875%. The subscription period runs from 5 to 11 May 2011, but may be ended prematurely in the event of oversubscription.

The bond is due to be listed from 16 May 2011 at an issue price equal to the nominal amount. The company is targeting private and institutional investors in Germany and Austria. DIC Asset claims it is the first listed real estate company in Germany to offer such a large-volume corporate bond to the capital market.

In a press statement, CEO Ulrich Höller said: ‘With the DIC bond, investors are investing in a real estate company that has remained profitable and innovative for many years and that is invested exclusively in Germany, the most stable market in Europe for commercial real estate.’

The new funds generated from the bond issue and the proceeds of a EUR 50 mln capital increase earlier this year will be deployed for ‘attractive purchase opportunities on the market’, the company said.