Acquisition

RNS Number : 8531W

Summit Germany Limited

06 August 2018

 

Summit Germany Limited
("Summit" or the "Company")
Acquisition of controlling stake in GxP German Properties AG

6 August 2018

Summit Germany Limited, the AIM-listed German commercial property investment company, is pleased to announce that it has entered into an unconditional agreement to acquire ca. 72 per cent. of GxP German Properties AG ("GxP"), a company listed on the Frankfurt Stock Exchange, from Consus Real Estate AG and other minority holders (the "Acquisition").

GxP owns an office portfolio of ca. €166 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 €10.8 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 €15.5 million for the year ended 31 December 2017.

The consideration for the acquired shares is ca. €45 million, with ca. €40 million payable in cash upon completion and a further €5 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".

Summit Germany Limited	Tel: [phone]
Zohar Levy - Managing Director
Itay Barlev (Braun) - Finance Director
Non-Executive Chairman	Tel: [phone]
Harry Hyman
Carey Group, Company Secretary	Tel: [phone]
Sara Bourne
Liberum Capital Limited, Nominated Adviser and Joint Broker	Tel: [phone]
Chris Clarke / Jill Li
Cenkos Securities, Joint Broker	Tel: [phone]
Mark Connelly
Russell Kerr / Selwyn Jones (Broking)
Inside Information This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

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