AIM-listed Delek Global Real Estate (DGRE), part of the Israeli Delek Group, reported this week that they have acquired four major property portfolios in Europe for £ 137 mln (about EUR 202 mln). DGRE has financed most of these acquisitions with fixed-rate long-term debt of around EUR 172 mln, together with about EUR 30 mln of equity, resulting in an average loan to value of 85%.
AIM-listed Delek Global Real Estate (DGRE), part of the Israeli Delek Group, reported this week that they have acquired four major property portfolios in Europe for £ 137 mln (about EUR 202 mln). DGRE has financed most of these acquisitions with fixed-rate long-term debt of around EUR 172 mln, together with about EUR 30 mln of equity, resulting in an average loan to value of 85%.
Two of the portfolios are located in Germany, with one representing two office sites in Kaiserslautern and Frankfurt, acquired by a wholly-owned subsidiary and let to Deutsche Telekom. The Kaiserslautern site consists of three office buildings totalling 6,000 m2 close to the city centre and leased until 2015. The Frankfurt properties, leased until 2014, total 16,000 m2 and consist of three offices, a warehouse and a small residential building in the south of the city. The other has been acquired by a 50%-owned subsidiary of DGRE and consists of two buildings occupied by the University of Berlin, together totalling 42,250 m2 and leased until the end of 2012. The third involves the acquisition of the 34,000 m2 World Trade Centre in Lausanne, Switzerland, which is let to tenants including Orange, Hyatt, SAP and Fortis. The last is a Finnish retail portfolio consisting of 17 properties totalling 106,000 m2 and let to Puukeskus, a wood products distributor.
DGRE did not reveal the average initial net yield for these acquisitions, but said they 'meet key investor criteria' and that the average annual return on equity was expected to be 13%. DGRE ceo Ilik Rozanski said that the company now has interests in assets worth over EUR 6.2 bn.
