Summit acquires five properties for EUR 58.8 mln

Summit Germany, a commercial property investment company listed on AIM in London, has announced it is to acquire five additional properties in Germany for a total investment of EUR 58.8 mln. The deal will reflect an average net yield of 7% per annum and 7.8% on full occupancy.

The properties are located in the centre and the suburbs of Cologne, Berlin and the vicinity of Stuttgart. The total rentable area of the properties amounts to approximately 40,725 m2, which Summit said, reflects an average rent per square metre per month of EUR 8.4. The aggregate average net rent of the five buildings is approximately EUR 4.1 mln per year and the expected rent on full occupancy is approximately EUR 4.6 mln.

With an average lease length of 16 year, approximately 37% of the rent results from entities related to the German Government, including a school, a police station and some other governmental departments. Approximately 56% of the rent results from other strong tenants, including a Plus supermarket and an Elixia fitness centre.

Summit said that upon the completion of the acquisition in February 2007, together with the portfolio already acquired, the total value of the company's properties will amount to approximately EUR 400 mln.

'This acquisition emphasises our strategy. These new properties are characterised by strong tenants, very long leases and excellent locations,' commented Zohar Levy, ceo of Summit Management Company. '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'.