AIM-listed Develica Deutschland has bought three properties in south-west Germany for a combined total of €33m (£24.9m).
The three properties include a 23,680 sq ft office building let to a local authority tenant, a 387,504 sq ft logistics centre let to a regional operator and a 107,640 sq ft industrial property let to a local machine tool distributor. The net rent of the three properties is €2.28m (£1.72m) reflecting a 6.9% yield.
The deal pushes Develica’s total funds invested to €1.07bn (£810m) producing an annual gross rental income of more than €69m (£52.1m).
Derek Butler, chairman at Develica, said: 'The German economy is probably better placed than any other western economy to weather the current global economic conditions and, as such, the German commercial property investment market is one that we continue to view with confidence'.
Richard Thirkell, Develica Deutschland management fund manager, said: 'These three acquisitions reflect our policy of combining an attractive initial income return with potential short to medium term asset management opportunities.'