Property Investment company Summit Germany Limited has announced the €55m acquisition of a complex of office buildings in Stuttgart.
The 135,000 sqm site includes 63,000 of lettable area and rights for further development of additional 55,000 sqm. The properties are multi let with a current occupancy rate of 95% . The aggregate current net rent is approximately € 4.5m and the expected NOI is € 4.1m.
An agreement regarding the acquisition of 90% of the properties was signed and another agreement for the acquisition of adjacent smaller property (ca. € 5 million) 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.
Harry Hyman, chairman, and Zohar Levy, managing director, comment on the agreemnt:”This acquisition fits our strategy as it combines low capital value due to its attractive location, together with a strong long term cash flow and upside potential from future development. We are working on additional acquisitions and we believe that their completion will enhance the Company’s cash flow in the second half of 2015.”