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Summit Germany Buys Frankfurt Offices For EUR25.5 Million

Mon, 15th Feb 2016 08:45

LONDON (Alliance News) - German commercial property company Summit Germany Ltd on Monday said it has spent EUR25.5 million on an office building in Oberursel, a suburb of Frankfurt.

The office has around 18,000 square metres of lettable area and is located in a residential area, Summit said. It is fully-let to a German-listed construction company, it said, which sublets around 40% of the space to other tenants.

The property generates a net rent of EUR1.8 million a year, reflect a net yield of 7.0% on the purchase price.

Summit added it thinks there is scope to build a residential development on the existing plot and convert part of the office space into residential units when they are vacated.

"We are very excited with this acquisition which is in line with our strategy. It has attractive location, excellent yield with a stable long-term income and a tremendous upside potential from the further residential development and the potential conversion of office spaces," said Summit Managing Director Zohar Levy.

Summit shares were untraded early Monday, having last traded at 0.960 pence.

By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance