EUR 100 million German Portfolio Acquisition

RNS Number : 1329J

Summit Germany Limited

26 June 2017

 

Summit Germany Limited

("Summit" or the "Company")

€100 million German Portfolio Acquisition

26 June 2017

Summit Germany Limited, the AIM-listed German commercial property investment company, is pleased to announce that it has entered into an unconditional agreement with Dazzle Capital Holdings Ltd., for the acquisition of a portfolio of commercial properties at a total purchase price of approximately €100 million including acquisition costs, located in 4 different sites in the city of Wolfsburg, Germany.

The aggregate annual net rent from these properties is €7.9 million, which reflects rental yield of 7.9%.

The purchase price net of liabilities in the amount €70 million will be financed by the Company's existing cash of €30 million.

The acquired assets, consisting of 80,000 sqm of lettable area, were constructed in the years 1999 - 2014 over 130,000 sqm of land, and are fully let, mainly to the Volkswagen group (approximately 60% of the lettable space through 15 different leases), as well as to other leading companies in the automotive industry.

This acquisition will increase the company's GAV from €800 million to €900 million and the net rent from €58 million to €66 million.

Completion of the acquisition is expected in the coming days.

Wolfsburg is a city with a population of 120,000 in the center of Germany recently ranked as the German city with highest GDP per capita and is the location of Volkswagen headquarters and the world's biggest car plant.

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
Liberum Capital Limited, Nominated Adviser and Joint Broker	Tel: [phone]
Chris Clarke / Jill Li
Cenkos Securities, Joint Broker	Tel: [phone]
Ivonne Cantu
Russell Kerr / Selwyn Jones (Broking)
Inside Information This announcement contains inside information which is disclosed in accordance with the Market Abuse Regulation.

 

END

 

 

ACQOKADQFBKKQAB