Summit Germany Limited Acquisition (8531W)

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: [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  Tel: [phone] 
 and Joint Broker 
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. 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

ACQPAMLTMBBMBRP

(END) Dow Jones Newswires

August 06, 2018 02:00 ET (06:00 GMT)