Summit Germany buys Fortress portfolio – Summit Germany Limited has entered into an unconditional agreement to acquire a portfolio of commercial properties from several subsidiaries of Fortress Immobilien AG. The total purchase price is €86m, including acquisition costs.
The acquired properties consist of 8 well located multi service centers in major cities in Germany; mainly Berlin, Frankfurt and Düsseldorf. The aggregate annual net rent from these properties is €5.8m, which reflects a rental yield of 6.75%. Rental income is expected to increase to €6.1m in the coming years as stipulated in the lease agreements.
The acquired properties, with net lettable area of 58,000 sqm, were constructed between 2005 and 2015. The multi-tenant portfolio is fully let, mainly to strong tenants, with a weighted average lease length of ca. 10 years.
The portfolio also includes ca. 180,000 sqm of additional building rights for future development. The purchase price, net of €51m senior debt, will be financed by existing cash. Completion of the acquisition is expected in the coming days.
SMTG : Summit Germany buys Fortress portfolio