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Summit Germany tops €300m refinancing

Summit Germany has refinanced a portfolio of nine buildings with a €33m seven-year loan at 1.96% from pbb Deutsch Pfandbriefbank. The new facility follows a €268m seven-year loan from HSH Nordbank and DG Hyp with a 3.14% interest rate in January, taking its total refinancing this year to £301m.

Summit Germany has refinanced a portfolio of nine buildings with a €33m seven-year loan at 1.96% from pbb Deutsch Pfandbriefbank, taking its total refinancing this year to €301m.

The new facility follows a €268m seven-year loan from HSH Nordbank and DG Hyp with a 3.14% interest rate in January.

The latest loan, revealed in its annual results today, was on buildings bought last year with €46m equity.

Itay Braun, Summit Germany’s finance director, said the portfolio had been revalued almost €30m higher than the purchase price, prompting the company to seek the new debt.

“It’s not our strategy to be an equity-only buyer so we raised the debt on 50% LTV,” he said.

The firm would not be refinancing any existing assets this year but it would be seeking debt to make further acquisitions. The company also raised €120m with a share placement in February to help fund purchases.

Summit Germany’s results showed a net profit of €70.9m for the year end 31 December 2014 compared to €23.8m in 2013. Its investment portfolio of 95 properties had a value of €582.6m paying rent of €47.1m, reflecting a rental yield of 8.1%.

The company is led by managing director Zohar Levy, the controlling shareholder of the company’s parent Summit Group, which invests in property in Israel and Germany.

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