LONDON (Alliance News) - Commercial real estate company Summit Germany Ltd Tuesday said it has reached an agreement to acquire a loan facility on a portfolio of 11 commercial properties in a deal worth around EUR45.5 million. The loan facility has a face value of EUR74 million.
The firm previously owned the portfolio, and once it has acquired the loan facility it will regain full control.
The portfolio, which consists of mainly offices throughout Germany, has a aggregate net lettable area of 90,00 square meters and an occupancy rate of 71%. The properties also generate an aggregate net annual rent of around EUR6.3 million, reflecting a gross rental yield on 13.7% on the acquisition cost.
Summit Germany expects the deal to be completed in the next few days.
In a separate deal, Summit said one of its subsidiaries - which it did not name - has sold its 50% stake in a joint venture owning a single property in Berlin.
The firm said the property was valued at EUR5.1 million at the time of the sale and had outstanding debt of around EUR3 million and an implied net yield of 5.2%. Summit said the subsidiary's net proceeds from the sale is around EUR1.1 million - a EUR600,000 gain.
The stock is untraded Tuesday. It last traded on Monday at 0.64 pence.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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