Summit Germany has announced that it has acquired two office buildings, one in Munich and the other in Duisburg, for a total purchase price of €15m (including acquisition costs). The company says that the properties consist of approximately 12,000 square metres of lettable area and are fully let to several strong tenants with a weighted average lease length (WALL) of 6.5 years. The aggregate net rent is approximately €1.2m per annum, reflecting a rental yield of 8.1% on the acquisition cost. Completion is expected to take place within the next few weeks. The company also say that, since its last trading update in December 2015, it has sold 3 small retail properties for a total consideration of € 2.4m (in line with their book value). The company says that the acquisitions will improve its cash flow and that they will continue to strengthen the portfolio by disposing of small and non-strategic properties while acquiring properties in strong locations (more acquisitions are expected in the next few months).
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