AIM-listed German commercial property investment company Summit Germany, has signed a lease agreement for approximately 9,000 m[sup]2[/sup] in its Osram Hofe property in Berlin. The new lease agreement with the Berlin State hospital is for an average term of 6.5 years and will generate a rental income of EUR 1.1 mln per annum.
AIM-listed German commercial property investment company Summit Germany, has signed a lease agreement for approximately 9,000 m2 in its Osram Hofe property in Berlin. The new lease agreement with the Berlin State hospital is for an average term of 6.5 years and will generate a rental income of EUR 1.1 mln per annum.
The basic rent is EUR 8.5 per m2 per month with additional annual charges to the tenant for indexation and facility management. The price compares to an average rent of EUR 6.3 per m2 per month prior to the new lease.
Together with additional lettings in this property total vacancy has been reduced from 30,000 m2 to 17,000 m2, which represent 28% vacancy compared to a 50% rate when Summit acquired this property as part of the DRE portfolio. The result is a 65% increase of the original net operating income attributed to this property, the company added.