Summit Germany is regaining full control of a six-asset office portfolio by acquiring the underlying loan at a 49% discount.
Summit Germany is regaining full control of a six-asset office portfolio by acquiring the underlying loan at a 49% discount.
A binding agreement has been signed to acquire the loan facility which has a face value of €78 mln for €40 mln plus immaterial deal expenses, the Guernsey-registered and London AIM-listed company said.
Final completion is expected in the next few days.
The 'Telecom' portfolio consists of six office properties in good locations in Germany such as Dusseldorf, Heidelberg and Potsdam. It has an aggregate Net Lettable Area of 63,000 m2 and occupancy rate of 72%.
The properties currently generate an aggregate net annual rent of approximately €5.5 mln, reflecting a rental yield of 13.8% on the acquisition cost.
In addition to the cash flow, there are several opportunities to enhance value through letting of vacancies, some conversion to residential uses and development of surplus land, Summit Germany said.