Summit Germany Limited EUR 15 million Disposal of Properties (9105L)

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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