Admission and First Day of Dealings on AIM

RNS Number : 9267A

Summit Germany Limited

26 February 2014

 



Summit Germany Limited ("Summit" or the "Company")

Admission and First Day of Dealings on AIM

Summit Germany Limited (AIM: SMTG), an established German commercial real estate company, is pleased to announce its admission to trading on AIM today. Dealings in the Company's ordinary shares will commence today under the TIDM SMTG.

Summary

·     The Company has raised approximately €34.6 million, before expenses, through the placing and issue of 54,971,291 ordinary shares

·     The number of ordinary shares in issue immediately after admission will be 293,971,291 giving the Company a market capitalisation of approximately €185 million at the placing price of €0.63 per ordinary share.

·     The net proceeds of the placing (together with any appropriate bank debt) will be used to finance acquisitions from the Company's identified pipeline.

About Summit

·     Summit isa German commercial real estate company established in 2006 with a portfolio of 86 properties with net market value of approximately €500m and yielding 8%. The Company's NAV and EPRA NAV as at 30 June 2013 was approximately €177m and €199m respectively.

·     Summit has an internal management team with a 10 year track record in German real estate and offices in Berlin and Frankfurt.

·     The properties, mainly offices with some retail and logistics, are in geographically diverse locations across Germany with 74% of the net lettable area located in Germany's major cities.

·     The Company's properties are multi- tenanted (more than 500 tenants in total) with 80% of income derived from governmental and other strong tenants such as public sector entities and large corporates.

·     As at December 2013, the Company's portfolio had a net lettable area of 647,000 sqm generating an aggregate net annual rent of approximately €39m.

·     The Company has identified a pipeline of €250m of potential acquisitions capable of enhancing the yield of its overall portfolio.

The German Commercial Real Estate Market

·     Germany is the largest commercial real estate sector in Europe and the German property market is considered to be one of the most secure and stable globally. 

·     Capital values for commercial property in Germany have been more resilient than in the UK in the last years; however, the German commercial property market remains at historically low values relative to domestic affordability.

·     There is currently a positive yield spread in the German real estate market creating an opportunity for the Company to generate positive returns.

Zohar Levy, Managing Director, said:

"We are very pleased to join the AIM Market and to have received the support of institutional and private investors in the UK. Our listing on AIM will allow us to grow our property portfolio taking advantage of the opportunities in the German commercial real estate market to deliver attractive returns and dividends to our shareholders. "

For Further Information please contact:

Summit Germany Limited	Tel: [phone]
Zohar Levy, Managing Director
Harry Hyman, Non-Executive Chairman	Tel: [phone]
Sharon Erez Marckado, Finance Director
Cenkos Securities, Nominated Adviser and Broker	Tel: [phone]
Ivonne Cantu / Michael Johnson (Nomad) Russell Kerr/Selwyn Jones (Broking)
Broker Profile	Tel: [phone]
Simon Courtenay Tamsin Shephard

For further information on Summit Germany Limited and to download the Company's Admission Document please visit www.summitgermany.com

Notes for Editors

·     Summit Germany Limited is a German commercial real estate company, with a portfolio of 86 properties, located mainly in Germany's key commercial centres, valued by DIWG at approximately €500 million and yielding 8%.

·     Summit's' primary emphasis is the purchase, holding and management of office, retail, logistics and other commercial properties throughout Germany, which provide income by way of lettings to commercial, governmental and other public sector, and commercial tenants.

·     The Company targets mainly multi-let properties and actively manages the properties to achieve high levels of lease renewals and new lettings which combined seek to mitigate revenue risk.

·     The Company's current portfolio is managed by the Group's internal property and asset management platform and the Company plans to increase its portfolio to in excess of €1 billion using this existing platform.

·     Summit employs an experienced professional team of approximately 50 people in its offices in Berlin and Frankfurt.

·     The Company's current portfolio consists of multi-let German commercial assets, mainly offices with some retail and logistics properties, leased to approximately 500 tenants, such as government and public sector entities and large corporates, on relatively long-term leases for the German market.

The properties are in geographically diverse locations across Germany, but approximately 50% of rental income comes from properties located in the main German financial centres of Berlin, Frankfurt and Hamburg. Over 74% of the Current Portfolio's net lettable areas are located in Germany's major cities.

·     The Company's portfolio has been held and managed by Summit since it was acquired in 2006 and 2007 and has a solid track record of generating stable cash-flows.

Management and Board of Directors

·     Harry Hyman has been appointed as Non-Executive Chairman.

·     Harry Hyman has over twenty years' experience in fund management and investment in the healthcare and real estate sectors. In 1996 he founded Primary Health Properties PLC, a real estate investment trust listed on the London Stock Exchange with a property portfolio of over £940 million in the primary healthcare sector, and remains a Managing Director to date.  

·     The Executive team comprises Zohar Levy, Managing Director and Sharon Marckado Erez, Finance Director.

·     Zohar Levy founded Summit Germany Limited in in 2006. Prior to his involvement in Summit Mr. Levy was for a decade CFO of the Engel group of real estate companies which specialises in the development of residential properties and the acquisition and management of commercial properties in Europe  and North America.

·     Quentin Spicer and Timothy Parkes have been appointed as Independent Non-Executive Directors.

·     Quentin Spicer is Chairman of a number of companies including F&C UK Real Estate Investments Limited, Quintain Guernsey Limited and the Guernsey Housing Association LBG.

·     Mr. Parkes has over 25 years' experience in financial services. He is director of strategy and business development at Carey Group.

 

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