LONDON (Alliance News) - Summit Germany Ltd on Monday said it agreed to acquire a portfolio of eight commercial properties from subsidiaries of Fortress Immobilien AG for EUR86 million.
The AIM-listed German commercial property investment company said the price includes acquisition costs. The acquisition will be funded from the company's existing cash.
The acquired properties were constructed between 2005 and 2015 and are located in major cities in Germany, mainly Berlin, Frankfurt and Dusseldorf.
The aggregate annual net rent from these properties is EUR5.8 million, Summit Germany said, which reflects a rental yield of 6.75%. Rental income is expected to increase to EUR6.1 million in the coming years as stipulated in the lease agreements. The multi-tenant portfolio is fully let, with a weighted average lease length of 10 years.
The company expects completion of the acquisition in the coming days.
Summit Germany shares were trading 1.4% higher on Monday at EUR1.19 each.