Summit Germany spends €100m in Wolfsburg. Summit Germany Limited, the AIM-listed German commercial property investment company, has announced that it has entered into an unconditional agreement with Dazzle Capital Holdings Ltd., for the acquisition of a portfolio of commercial properties at a total purchase price of approximately €100 million including acquisition costs, located in 4 different sites in the city of Wolfsburg, Germany.
The aggregate annual net rent from these properties is €7.9 million, which reflects rental yield of 7.9%. The purchase price net of liabilities in the amount €70 million will be financed by the Company’s existing cash of €30 million.
The acquired assets, consisting of 80,000 sqm of lettable area, were constructed in the years 1999 –2014 over 130,000 sqm of land, and are fully let, mainly to the Volkswagen group (approximately 60% of the lettable space through 15 different leases), as well as to other leading companies in the automotive industry.
This acquisition will increase the company’s GAV from €800 million to €900 million and the net rent from €58 million to €66 million. Completion of the acquisition is expected in the coming days.
Wolfsburg is a city with a population of 120,000 in the center of Germany recently ranked as the German city with highest GDP per capita and is the location of Volkswagen headquarters and the world’s biggest car plant.
SMTG : Summit Germany spends €100m in Wolfsburg