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Summit Germany Ltd (SMTP)

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Monday 06 August, 2018

Summit Germany Ltd

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: +44 (0) 1481 700 300

 

Zohar Levy - Managing Director


 

Itay Barlev (Braun) - Finance Director


 



 

Non-Executive Chairman

Tel: +44 (0) 20 7451 7050

 

Harry Hyman


 



 

Carey Group, Company Secretary

Tel: +44 (0) 1481 700 300

 

Sara Bourne


 



 

Liberum Capital Limited, Nominated Adviser and Joint Broker

Tel: +44 (0) 20 3100 2222

 

Chris Clarke / Jill Li


 



 

Cenkos Securities, Joint Broker

Tel: +44 (0) 20 7397 8900

 

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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