Commercial real estate investor Summit Germany has purchased 40 new properties for a total investment volume of EUR 151 mln, reflecting an average net yield after acquisition costs of 7% a year. The new portfolio comprises eight office properties, eight distribution units and 24 retail properties and has a total rentable area of 167,752 m[sup]2[/sup]. Its current tenants, leasing on average for over nine years, include the German government, media giant Bertelsmann and Edeka, the country's largest food retailer. Some 71% of the properties are in the west of the country and the remainder are in the east. They yield a total annual rent of EUR 10.6 mln.
Commercial real estate investor Summit Germany has purchased 40 new properties for a total investment volume of EUR 151 mln, reflecting an average net yield after acquisition costs of 7% a year. The new portfolio comprises eight office properties, eight distribution units and 24 retail properties and has a total rentable area of 167,752 m2. Its current tenants, leasing on average for over nine years, include the German government, media giant Bertelsmann and Edeka, the country's largest food retailer. Some 71% of the properties are in the west of the country and the remainder are in the east. They yield a total annual rent of EUR 10.6 mln.
Commenting on the acquisition, company chairman John Lamb said: 'This portfolio acquisition is an excellent fit with our existing property investments. All of the buildings are let on long leases to range of first class tenants. The initial yield of 7% offers very good value, significantly in excess of our cost of borrowing'. He expressed confidence that the performance of the properties would improve thanks to the strength of the German property investment climate.
