Summit Germany Limited EUR 15 million Disposal of Properties (9105L)
July 24 2017 - 7:30AM
UK Regulatory
TIDMSMTG
RNS Number : 9105L
Summit Germany Limited
24 July 2017
Summit Germany Limited
(the "Company")
EUR15 million Disposal of Properties
24 July 2017
Summit Germany Limited, the AIM-listed German commercial
property investment company, is pleased to announce that it has
entered into an unconditional agreement for the sale of 18 small
properties (the "Properties") for a total consideration of EUR15
million, of which EUR9.1 million will be in cash and the balance
through a five-year loan bearing an average annual interest rate of
3%. This loan is secured by a first rank mortgage over the
Properties and the shares of the companies in which they are
held.
The sale price reflects the value of the Properties in the
Company's financial statements for the year ended 31 December 2016.
Completion of the transaction is expected within a few days.
Most of the cash proceeds of the sale will be used to part repay
one of the Company's debt facilities. Following preliminary
discussions with the lender of the facility, subject to repayment
of certain agreed amounts, the facility will be extended for an
additional ten-year period with a total expected interest and
amortisation rate of ca. 5% p.a. compared to the current rate of 8%
p.a. The Company and the lender aim to complete these amendments to
the terms of the loan before 31 December 2017. Following the
repayment of ca. EUR9 million, the loan balance with the Company's
lender would be reduced to EUR51 million.
The sale of the Properties improves the overall quality of the
Company's portfolio and is consistent with the Company's strategy
to focus on substantial properties in attractive locations and to
dispose of non-strategic and small properties.
Inside Information
This announcement contains inside information which is disclosed
in accordance with the Market Abuse Regulation.
For further information please contact:
Summit Germany Limited Tel: +44 (0) 1481 700 300
Zohar Levy - Managing Director
Itay Barlev (Braun) - Finance
Director
Non-Executive Chairman Tel: +44 (0) 20 7451 7050
Harry Hyman
Carey Group, Company Secretary Tel: +44 (0) 1481 700 300
Sara Bourne
Liberum Capital Limited, Nominated Tel: +44 (0) 20 3100 2222
Adviser and Joint Broker
Chris Clarke / Jill Li
Cenkos Securities, Joint Broker Tel: +44 (0) 20 7397 8900
Ivonne Cantu
Russell Kerr / Selwyn Jones (Broking)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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