Summit Germany takes control of GxP German Properties
Summit Germany takes control of GxP German Properties – Summit Germany has entered into an unconditional agreement to acquire around 72% of GxP German Properties AG, a company listed on the Frankfurt Stock Exchange, from Consus Real Estate AG and other minority holders.
GxP owns an office portfolio of ca. EUR166 million in major German cities, mainly in Frankfurt, Berlin and NRW. The portfolio includes 12 properties with lettable area of 106,700 square meters.
As at 31 March 2018, the properties generated net rental income of EUR10.8 million per annum representing an implied rental yield of 6.6% and a loan-to-value ratio of 59.3%. As at the same date, the properties were 89% let with a weighted average lease length of 3.5 years. GxP generated profit after tax of EUR15.5 million for the year ended 31 December 2017.
The consideration for the acquired shares is ca. EUR45 million, with ca. EUR40 million payable in cash upon completion and a further EUR5 million payable upon publication of GxP’s 30 June 2018 financial reports subject to the achievement of a minimum threshold.
Harry Hyman, chairman commented: “The acquisition is increasing our portfolio with good assets in central locations. We believe there is a substantial upside due to potential letting of vacancies and the opportunity to streamline the company’s operations“.
SMTG : Summit Germany takes control of GxP German Properties