Summit Germany, the AIM-listed German commercial property investment company, has acquired an office building complex in Oberursel, a suburb of Frankfurt.
Summit Germany, the AIM-listed German commercial property investment company, has acquired an office building complex in Oberursel, a suburb of Frankfurt.
Acquired for a total of €25.5 mln, the Oberursel complex provides around 18,000 m2 of lettable area on 19,000 m2 of land and is centrally located in a residential area.
The properties are fully let to an unnamed German listed company in the construction industry with 60% of the space being used as its headquarters and the remainder being sublet to several other tenants with a weighted average lease length of 11.4 years.
The asset generates rents of €1.8 mln a year, reflecting a NOI yield of 7% on the acquisition cost.
Summit Germany's plan for the asset is to build a residential development on the existing plot and to convert part of the office space into residential units when these are vacated.
The company intends to finance the acquisition with cash initially and has entered into discussions with German lenders to refinance the property at a later stage. Closing is expected to take place within the next weeks.
