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Summit Germany Buys Stuttgart Office Complex For EUR55 Million

Wed, 03rd Jun 2015 07:36

LONDON (Alliance News) - Summit Germany Ltd on Wednesday said it has struck a deal to acquire a set of office buildings in Stuttgart for EUR55 million, reflecting a net initial yield of 7.5%.

The site comprises 135,000 square metres, including 63,000 square metres of lettable area and the right to develop a further 55,000 square metres.

The properties are multi-let with an occupancy rate of 95%, generating an average net rent of EUR4.5 million per year.

"This acquisition fits our strategy as it combines low capital value and attractive location, together with a strong long term cash flow and upside potential from future development. We are working on additional acquisitions and we believe that their completion will enhance the Company's cash flow in the second half of 2015," said Harry Hyman, Summit Germany's chairman, and Zohar Levy, its managing director, in a statement.

Shares in Summit were untraded Wednesday morning, having last traded at 0.933 pence.

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