- The international consortium was led by London-based Alvarium Investments

- New shareholders invest as the company is poised for future growth

- The investment will see a reduction of the company’s leverage

- Leadership team to be bolstered with existing management remaining in place ensuring the continuity of the company’s successful strategy

49.9% of the existing share capital of Diok RealEstate AG (“Diok”) has been sold to an international consortium of private investors led by Alvarium Investments. Alvarium is a global wealth and asset manager providing tailored solutions to families, foundations and institutions in the Americas, Europe and Asia Pacific. London-based Alvarium has over 220 employees and 28 partners across 14 locations in 10 countries serving $22 billion.

The share sale comes at a time when Diok is well-positioned for future growth and expansion as the company looks to continue its successful investment and asset management strategy in the German commercial real estate market. As part of the transaction, the new shareholders will repay a significant amount of subordinated debt for a reduction in the company's overall leverage. The aim is to significantly reduce Diok's level of debt in the medium term and to improve the company's rating in the long term. In addition, the company will continue its expansion course at an accelerated pace.

Diok is also pleased to announce that the company has appointed Dr. Ralf Nöcker, Principal at 64 Investments, to the Management Board. As a real estate investment professional with a track record of more than 30 transactions with a total value of more than 5.5 billion euros, Dr. Nöcker, will strengthen the current management.

Markus Drews and Daniel Grosch have prematurely extended their respective Management Board contracts for a further three years and will continue their successful work to ensure the continuity of the company's strategy and the implementation of its growth targets in the post-Covid economy.

Markus Drews, Member of the Board of Diok, commented: “This transaction will advance Diok's growth strategy and allow the company to seize additional opportunities in the market. We look forward to working with Mr. Elkington and Dr. Nöcker as we enter this next phase of our development.”

Jonathan Elkington of Alvarium commented: “The market for German science parks is currently highly fragmented and with increasing investor interest in the sector we see a compelling opportunity to consolidate and create a scalable, institutional quality commercial real estate portfolio. This partnership fits into Alvarium's broader strategy of allocating capital to identified thematic investment strategies backed by high-performance teams. We look forward to working with Diok as the company continues to accelerate its future growth in this dynamic sector.”

-ends-

More details: www.diok-realestate.de

Press Contact:
Diok RealEstate AG
c/o RUECKERCONSULT
Christof Hardebusch
T: +49 (0)221 29 29 56 33
E: hardebusch@rueckerconsult.de

About Diok RealEstate AG
Diok RealEstate AG (DIOK) is a property company based in Cologne that specialises in German office real estate. The company focuses on building up an attractive portfolio of commercial properties in good to excellent locations of second-tier cities, occupied mainly by tenants from forward-looking industries in the areas of digitisation, communication, automation and pharmaceutical technologies, for instance. Labour-intensive activities have been outsourced in their entirety to third parties while remaining subject to DIOK’s supervision and control. As an active portfolio and asset manager, DIOK thus achieves a steady capital growth and a positive cash flow from day one. In the medium term, DIOK intends to use its well-filled acquisition pipeline to build up a real estate portfolio worth 1 billion euros. As at the balance sheet date of 31 December 2020, the value of the real estate portfolio totalled c. 206.3 million euros.

About Alvarium Investments & Alvarium Real Estate Co-Investment
Alvarium is a global wealth and asset management firm.

The Alvarium Real Estate Co-Investment platform has deployed more than $7bn of capital following a thematic investment strategy, selecting subsectors based on in-house industry knowledge and long-term analysis of cyclical and geographic trends. Alvarium identifies best-in-class teams to execute the chosen strategies, providing its clients with proprietary co-investment opportunities. Alvarium RE Limited is Alvarium's real estate arm and is authorised and regulated in the UK by the Financial Conduct Authority.

About 64 Investments ltd.
64 Investments is a real estate corporate finance and investment management firm.

64 Investments originates, designs, structures and executes complex real estate projects in Germany, the UK, and across Europe. 64 Investments has been trading as a private foundation since 2008 and was incorporated in London in 2016. Having led over €5.5 billion of transactions, the 64 Investments team uses its strong network of relationships built over more than 22 years to provide bespoke, highly specialist services to its clients and partners.