Summit Germany has acquired a loan facility secured on six commercial properties in Germany. The deal price is €40m and they are buying loans with a face value of €78m.
The Company has previously owned the Portfolio (The Telecom Portfolio) and as a result of acquiring the loan facility, will regain full control. The Portfolio consists of 6 office properties in good locations in Germany such as Dusseldorf, Heidelberg and Potsdam. It has an aggregate Net Lettable Area of 63,000 square meters and occupancy rate of 72%.
The properties currently generate an aggregate Net Annual Rent of approximately €5.5m, reflecting rental yield of 13.8% on the acquisition cost. In addition to the cash flow, there are several opportunities to enhance value through letting of vacancies, some conversion to residential uses and development of surplus land.
SMTG : Summit Germany buys loans on six properties