AIM-listed property company Summit Germany has secured tenants at two of its properties in Rostock, Germany after the original tenant of both properties went into administration.

It said in a statement today that it had signed a triple-net lease for one of the properties with an undisclosed tenant. 

The lease is for an eight year term with an average net rental income of €300,000 (£243,075) a year.

Summit Germany will also be compensated by the receiver of the original tenant with around €500,000 (£404,955) which includes €360,000 (£291,567) for collection of the bank guarantee related to the property and a total of €140,000 (£113,417) in cash. 

Summit Germany said that the new rental income together with the compensation equalled the rental income from the property prior to the insolvency of the original tenant.

It has also let 2,670 sq m, the majority of vacant space,  in its Rostock properties to a governmental health insurance company. The 10 year lease will generate an average net rental income of € 507,000 (£410,661) a year.

In January and July of this year Summit Germany revealed the original tenant had gone into receivership, and that Summit had bought the bank debt which financed the acquisition of the properties for a profit of €5m (£4,049,560).

John Lamb, non-executive chairman, said: 'The ability of Summit's Asset Managers has again been proven. In spite of the current uncertainty in the investment market, our team is still able to enhance rental income which is so crucial.'