VIB Vermogen buys four assets for EUR 22.5m

German commercial property company VIB Vermögen said on Monday it has further expanded its real estate portfolio with the purchase of four newly built properties for a total investment volume of around EUR 22.5 mln. The transactions will generate additional annualised net rental income of EUR 1.6 mln.

The company has acquired three specialist store centres in Oberammergau, Freystadt and Simbach, as well as a Man truck service station in Kirchheim. The assets provide nearly 13,000 m² of space.

'All of the properties are already fully let on exceptionally long terms - some have leases running for up to 22 years. In addition, we have only concluded leases with top-quality tenants with excellent credit ratings,' said Peter Schropp, the company's managing board member responsible for real estate.

The acquisitions are being financed primarily from equity combined with annuity loans, which are mostly not subject to any covenant agreements, the company noted.

In total, the VIB Group has acquired or expanded seven properties in the current fiscal year for a total investment volume of EUR 51 mln. The properties added in 2009 have a total rental area of around 47,400 m² and generate additional net rental income of EUR 4 mln. At present, the company's real estate portfolio comprises 85 properties with a rental area of 644,000 m².