The aggregate net rent of the five buildings is €4.1 million per year.
Summit Real Estate Holdings Ltd. (TASE: SMT) subsidiary Summit Germany Ltd. (AIM:SGL) has bought five properties for €58.8 million ($77 million). The properties are in the Cologne city center and suburbs, the vicinity of Stuttgart, and in Berlin.
The aggregate net rent of the five buildings is €4.1 million per year and the expected rent on full occupancy is approximately €4.6 million per year. All the leases are linked to the German CPI.The properties generate a net return on investment of 7%, and 7.8% when fully occupied.
The leases range between five and years. Approximately 37% of the rent results from entities related to the German government. 56% of the rent results from other strong tenants, including a UK plc, Plus supermarket and Elixia fitness centers.
Published by Globes [online], Israel business news - www.globes.co.il - on December 20, 2006
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