Summit Germany, the AIM-listed property investment firm, has purchased a €100 mln commercial portfolio in Wolfsburg, Germany from Dazzle Capital Holdings.
The assets, comprising 80,000 m2 of lettable area, are located in four different sites in the city. The aggregate annual net rent from the properties is €7.9 mln, reflecting a rental yield of 7.9%.
The properties were constructed in the years 1999–2014 over 130,000 m2 of land. They are fully let, mainly to the Volkswagen group, which occupies approximately 60% of the lettable space through 15 different leases. The other tenants are all part of the automotive industry.
According to Summit Germany, the deal increases the company's gross asset value to €900 mln from €800 mln, and its net rental procedings to €66 mln from €58 mln.
The deal is expected to complete in the next few days.
