Completion of Acquisition

RNS Number : 5499N

Summit Germany Limited

01 February 2016

 

Summit Germany Limited

("Summit Germany" or the "Company")

Completion of €15m Acquisition of German Offices

1 February 2016

Summit Germany, the AIM-listed German commercial property investment company, is pleased to announce that it has successfully completed the acquisition of an office building in Munich and another property in Duisburg, which was announced on 11 January 2016.

The gross purchase price of € 15 million was financed with Company's cash and with a € 10.5 million debt facility. The debt was provided by a German bank for a 10 years term at a fixed interest rate of 1.8% p.a. and an annual amortization rate of 3%.

The properties with a lettable area of 12,000 square meters are fully let and they generate an aggregate net rent of € 1.2 million p.a. and an NOI of € 1.17 million p.a.

Following restructuring of the transaction, the net NOI yield is now 7.8%, which reflects a 15% cash return on the invested equity and FFO return of 22.4%.

-ends-

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	Tel: [phone]
Adviser and Joint Broker
Ivonne Cantu (Nomad)
Russell Kerr / Selwyn Jones (Broking)
Liberum Capital Limited, Joint Broker	Tel: [phone]
Chris Bowman / Jill Li
Capital Access Group	Tel: [phone]
Simon Courtenay / Harry Rippon

 

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