Summit Germany Limited Acquisition (8531W)
06 August 2018 - 4:00PM
UK Regulatory
TIDMSMTG
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. 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".
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 Tel: +44 (0) 20 3100 2222
and Joint Broker
Chris Clarke / Jill Li
Cenkos Securities, Joint Broker Tel: +44 (0) 20 7397 8900
Mark Connelly
Russell Kerr / Selwyn Jones (Broking)
Inside Information
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END
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