Summit Real Estate Holdings Ltd completed last week the acquisition of a portfolio of 25 buildings in 12 locations throughout Germany, all of which are completely leased to Deutsche Telekom for long terms.
The aggregate investment in the portfolio is approximately EUR 180 million. Summit acquires the aforementioned properties by way of purchasing control over German and Luxembourg companies that own these properties. Summit’s portfolio consists of floor space of approximately 170,000 sqm., generating an average annual net income, after maintenance costs, of approximately EUR 14 million.
The properties purchased by Summit were sold several years ago by Deutsche Telekom as part of a sale-and-leaseback transaction known as the Magenta portfolio and the Millenium portfolio and were purchased by Summit in three separate deals from German and European institutions. The properties are located in cities such as Berlin, Frankurt, Magdeburg, Dusseldorf, Nurenberg, Essen, Manheim and others.
Zohar Levy, Summit’s Chairman, commented following the completion of the transaction as follows: “Summit has substantial financial and management capabilities which we intend to use for the improvement of the acquired portfolio as well as in additional transactions in which we are involved these days. We see a great opportunity in the diversification through many different locations on one hand and the strong DT lease agreements on the other hand. Summit will continue to focus its attention on the German real-estate market, especially on properties with long leases and good tenants. We are currently looking into further acquisitions of office buildings, as well as commercial and logistic centers throughout Germany.”