The AIM-listed German commercial property investment company, has bought five mixed-use properties for a total E58.8m (£39.4m).
The purchase price reflects an average net yield of 7% and the five acquisitions bring Summit’s German portfolio to €400m (£268.4m). Completion of acquisition of these properties is expected by February 2007.
The properties are located in Cologne city centre and its suburbs, Berlin and the vicinity of Stuttgart. The properties provide a total 438,363 sq ft (40,725 sq m), reflecting a capital value of €134/sq ft (£89.9/sq ft).
The average lease length is 16 years and all rents are linked to the German CPI. Approximately 37% of the rent results from entities related to the German Government, including a school, a police station and some other governmental departments. A further 56% of the rent results from other strong tenants, including a UK public company, a Plus supermarket and Elixia fitness centre.
Zohar Levy, chief executive officer, said: ‘This acquisition emphasises our strategy. These new properties are characterised by strong tenants, very long leases and excellent locations. In addition, they are acquired at low capital values and decent yields which will
support our policy of generating constant cash flow in addition to potential capital growth. We are confident that we will be able to complete some more similar acquisitions in the coming months.’