Further stable growth at AIM-listed Summit Germany

The AIM-listed Summit Germany, which focuses on commercial properties in Germany's larger commercial centres, added an office building in Munich and another in Duisburg to its Germany holdings for a total of €15m.

The properties consist of 12,000 sqm of lettable area and are fully let to several strong tenants with a Weighted Average Lease length (WALL) of 6.5 years. The aggregate net rent is about €1.2 million per annum, reflecting a rental yield of 8.1% on the acquisition cost. Since the last trading update in December 2015, the company has also sold 3 small retail properties for a total consideration of € 2.4 million, in line with their book value.

Zohar Levy, Managing Director commented, “The acquired properties in Munich and Duisburg fit our strategy as they are well located, with low capital value and a very stable income. Together with long-term financing they will improve our cash flow. We continue to strengthen our portfolio by disposing of small and non-strategic properties while acquiring properties in strong locations and we expect to acquire more properties in the next few months.”

At the end of 2015, Summit Germany owned 103 assets with 860,000 sqm and net rent of €57m p.a., at an occupancy rate of 87%. At mid-2015 the company's assets were valued at €582.4m, reflecting a rental yield of 8%. Subsequent revaluations brought the portfolio value up to €718m.

The company has borrowng of €330m, reflecting an LTV of 46% at an average loan duration of 5.8 years and an average interest rate of 2.8%.