Summit Germany Limited, the AIM-listed German commercial property investment company, announced that it has engaged in an agreement to acquire a complex of office buildings in Stuttgart, at a total purchase price of approximately €55 mln including acquisition costs, reflecting an average net yield of 7.5% per annum.
The site of 135,000 m2 includes 63,000 of lettable area and rights for further development of additional 55,000 m2. The properties are multi let with a current occupancy rate of 95% and WALL of 9 years. The aggregate current net rent is approximately € 4.5 mln and the expected NOI is € 4.1 mln.
An agreement regarding the acquisition of 90% of the properties was signed and another agreement for the acquisition of adjacent smaller property (ca. € 5 mln) is agreed to be signed in due course. The completion of the acquisitions, following the fulfillment of several conditions precedents, is expected to occur over the next few weeks.
Source: Summit Germany