Joint Venture

RNS Number : 0574Z

Summit Germany Limited

24 May 2016

 

Summit Germany Limited 

(the "Company")

New residential development in Berlin

24 May 2016 

Summit Germany Limited, the AIM-listed German commercial property investment company, is pleased to announce that it has engaged in a Joint Venture (the "JV") for the development of additional residential project in Berlin.

The JV acquired an existing building in Berlin for €5.5m and it intends to convert it to 60 apartments. Expected investment in the entire project is €18m and expected revenues from sales of apartments is €23m.

The JV intends to use a construction loan in order to finance the project, whereas the additional required funds of €3 million, are provided as loan by a subsidiary of Summit. Summit would be entitled to a minimum interest rate of 15% plus a share in the project's profit.

The loan and the accrued interest are repayable from the revenues of the project, in the second half of 2019.

To secure the recoverability of this loan, the Group received several securities from the developer and its shareholders.

For further information please contact:

Summit Germany Limited	Tel: [phone]
Zohar Levy - Managing Director
Itay Barlev (Braun) - Finance Director
Non-Executive Chairman	Tel: [phone]
Harry Hyman
Carey Group, Company Secretary	Tel: [phone]
Sara Bourne
Cenkos Securities, Nominated Adviser	Tel: [phone]
and Joint Broker
Ivonne Cantu (Nomad)
Russell Kerr / Selwyn Jones (Broking)
Liberum Capital Limited, Joint Broker	Tel: [phone]
Chris Clarke / Jill Li
Capital Access Group	Tel: [phone]
Simon Courtenay

 

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