Acquisition of German Offices

RNS Number : 3570L

Summit Germany Limited

11 January 2016

 

Summit Germany Limited

("Summit Germany" or the "Company")

€15m Acquisition of German Offices

Summit Germany, the AIM-listed German commercial property investment company, is pleased to announce that it has acquired one office building in Munich and another property in Duisburg, at a total purchase price of € 15 million, including acquisition costs.

The properties consist of ca. 12,000 square metres of lettable area and are fully let to several strong tenants with a Weighted Average Lease length (WALL) of 6.5 years. The aggregate net rent is ca. € 1.2 million per annum, reflecting a rental yield of 8.1% on the acquisition cost.  Completion is expected to take place within the next few weeks.

In addition, since the last trading update in December 2015, the Company has sold 3 small retail properties for a total consideration of € 2.4 million, in line with their book value.

Zohar Levy, Managing Director commented,

"The acquired properties in Munich and Duisburg fit our strategy as they are well located, with low capital value and a very stable income. Together with long term financing they will improve our cash flow."

"We continue to strengthen our portfolio by disposing of small and non-strategic properties while acquiring properties in strong locations and we expect to acquire more properties in the next few months."

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For further information please contact:

Summit Germany Limited	Tel: [phone]
Zohar Levy - Managing Director
Itay 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
Harry Rippon

 

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