Summit Germany buys stake in Deutsche Real Estate

Summit Germany has completed its acquisition of a controlling stake in Deutsche Real Estate. Summit Germany’s subsidiary has acquired around  76% of the outstanding shares of Deutsche RE, a German publicly traded company with a €300m property portfolio, for €34.9m. Deutsche RE has a core portfolio of 32 offices, shed and shop throughout West Germany. It also owns five properties through joint venture vehicles. The net acquisition yield of the core portfolio is estimated to be 6.1% and expected to rise to approximately 7.45% on full occupancy. Summit Germany chairman John Lamb said: “The closing of this significant acquisition brings the value of our portfolio to approximately €750m. “The properties within Deutsche RE are predominantly in good, central locations in major German cities, and we believe that this acquisition will give us good visibility and exposure in the German market and increase our growing power in this market.” samantha.mcclary@egi.co.uk