AIM-listed Summit Germany has bought a portfolio of 40 properties for €151m (£106m).

The portfolio comprises eight office buildings, eight distribution units and 24 retail properties, totalling 1.8m sq ft of space. Tenants include the German government, Bertelsmann AG, Kuhne and Edeka.

The deal reflects a net initial yield of 7%.

The company announced the purchase as it revealed good first half results. Net asset value increased 13% to €1.20 a share, and the interim dividend increased 20% to 2.4c.

The company saw the value of its portfolio increase 123% to €800m (£560m) in the first half of 2007, partly due the €35m (£25m) purchase of a 76% in Deutsche Real Estate, which has a portfolio value at around €300m (£210m).

Chairman John Lamb said: ‘Looking forward, despite current fluctuations in the global economy, the German real estate market remains interesting and offers huge opportunities for Summit.

‘Our properties are performing well, occupancy levels are increasing and our tenant base is excellent. We believe we have a first class team with the proven skills to deliver further value for our shareholders.’