Listed real estate company DIC Asset AG will buy GEG German Estate Group AG for €225 million in cash from KKR & Co. and TTL Real Estate GmbH.

GEG is a German property investment and asset manager focused on commercial real estate. It manages more than €3.6 billion of assets, including Sapporobogen in Munich, Garden Tower and Villa Kennedy in Frankfurt, and Business Campus am Park in Düsseldorf.

DIC, which handles property management for the majority of GEG's assets, expects the transaction to grow its institutional investor base and strengthen its development business. Following the completion of the acquisition, DIC will focus on two segments — DIC commercial portfolio and DIC institutional business.

Due to the transaction, DIC raised its funds from operations outlook for 2019 to between €88 million and €90 million from between €70 million and €72 million.

DIC was advised by Bankhaus Lampe KG, White & Case LLP, Rödl & Partner GmbH and PricewaterhouseCoopers GmbH.