Guernsey-based Summit Germany, an AIM-listed property firm, has signed on an €86m purchase of eight multi-service centres from Fortress Immobilien offering GLA of 58,000 sqm.
The properties are a mixture of automotive uses such as petrol stations, car wash, car service centres - and retail, including specialty food, pet food, drugstores and fast food restaurants. They are located in the larger cities of Germany, especially in Berlin, Frankfurt and Dusseldorf, and were built between 2005 and 2015, the firm said, confirming a report in the specialist Immobilien Zeitung newspaper.
The centres currently provide a rent of €5.8m, which corresponds to a yield of 6.75%, but should climb to around €6.1m in the coming years on a weighted average lease maturity of about 10 years across the portfolio. The locations also offer the potential for expansion, adding further buildings with around 180,000 sqm of space.
The purchase price will be paid out of existing cash reserves, plus a senior loan of €51m.
Summit Germany is nearly 50% held by a Dutch BV and various nominee accounts from different jurisdictions. At 30 June, the group owned 84 assets with a gross value of over €1bn. For the first half year it reported net profit of €87.1m, nearly 7x that of 1H17. EPRA net asset value rose 14.3% to €655m.