Rutley to complete EUR 163 mln purchase

Rutley European Property said it will complete the purchase of a large commercial portfolio on 1 October at the latest. The portfolio consists of 19 properties across France, Germany and the Netherlands and is being acquired for EUR 163 mln, reflecting a gross initial yield of 6.79%. It is made up principally of offices (60%), while retail assets account for 15%. Rutley said some 66% of the properties are Germany, 25% are in the Netherlands and 9% in France, with a total lettable area of 78,898 m². The portfolio is about 88% multi-let to a broad range of tenants, including insurance firm Elvia, Sopexa, EDEKA and Bilfinger Berger Real Estate Management, the German Federal Property Agency and the University of Leiden. The weighted average unexpired lease term is 4.14 years.

The properties are mostly located close to the centre of large and medium sized cities, whilst some of the retail assets are situated close to the centres of smaller towns. The portfolio includes significant exposure to major centres such as Munich, Amsterdam, the Hague and Paris, which together account for approximately 50% of the total portfolio, Rutley said.

At the start of 2007, Rutley completed the EUR 109 mln purchase of a Swedish office portfolio as part of the company's goal of creating a diversified European real estate portfolio.