SMTG.L Share News (SMTG)

Commercial real estate company Summit Germany has signed a deal to acquire a loan facility on a portfolio of 11 commercial properties in Germany.The total cost of the acquisition was around €45.5m and the loan facility itself has a face value of €74m.The company has previously owned the portfolio and as a result of acquiring the loan facility will regain full control, it explained. The portfolio consists of 11 properties, comprised of mainly offices throughout Germany. Altogether, the net lettable area totals 90,000 square meters with an occupancy rate of 71%. Together, the properties generate net annual rent of approximately €6.3m, reflecting a gross rental yield of 13.7% on the acquisition cost. In addition, the company also revealed that one of its subsidiaries has sold its 50% stake in a joint venture (JV) owning a single property in Berlin. The group said the disposal was part of its ongoing strategy of actively managing its portfolio to maximise returns. The subsidiary' generated net proceeds of around €1.1m from the sale, a €0.6 gain.In a statement the group said: "We are delighted to have concluded the acquisition of the loan which brings into the group a portfolio of properties with attractive cash flows and upside potential. We know the properties well and are confident of our ability to enhance their value over time."NR