Deutsche Real Estate (Deutsche RE), in which UK-based commercial property investment firm Summit Germany took a 76% controlling stake earlier this month, has acquired an office building in Frankfurt and a logistics centre in Hamburg. The Frankfurt property was acquired for EUR 29 mln and has a lettable area of 8,700 m2, It is currently only 47% let, and its annual rental income of EUR 1.2 mln reflects a net yield of about 4.14%. Deutsche RE claims active marketing should increase rental income to EUR 2.2 mln, improving the yield on the purchase price to 7.59%. Deutsche RE has also bought a logistics centre in Hamburg for EUR 15.9 mln. The centre, which has a lettable area of 23,530 m2, is almost fully occupied, and the EUR 1.2 mln it generates each year in rents reflects a net yield of around 7.5%. These Deutsche RE acquisitions bring the total value of Summit Germany’s portfolio to around EUR 800 mln.
Deutsche Real Estate (Deutsche RE), in which UK-based commercial property investment firm Summit Germany took a 76% controlling stake earlier this month, has acquired an office building in Frankfurt and a logistics centre in Hamburg. The Frankfurt property was acquired for EUR 29 mln and has a lettable area of 8,700 m2, It is currently only 47% let, and its annual rental income of EUR 1.2 mln reflects a net yield of about 4.14%. Deutsche RE claims active marketing should increase rental income to EUR 2.2 mln, improving the yield on the purchase price to 7.59%. Deutsche RE has also bought a logistics centre in Hamburg for EUR 15.9 mln. The centre, which has a lettable area of 23,530 m2, is almost fully occupied, and the EUR 1.2 mln it generates each year in rents reflects a net yield of around 7.5%. These Deutsche RE acquisitions bring the total value of Summit Germany’s portfolio to around EUR 800 mln.
