This is the REIT's third offering, having fully invested the previous €155 million proceeds.
Summit Germany Ltd. (AIM:SGL), the REIT that manages real estate activities in Germany on behalf of Summit Real Estate Holdings Ltd. (TASE: SMT), said yesterday that it raised a further €150 million from international investment institutions, most of which have not previously invested in the fund. Summit Germany issued 120 million shares at €1.25 per share, reflecting a market cap of €345 million ($450 million).
This is the third offering by Summit Germany. It raised €80 million in its first offering last year and then a further €75 million in its second in November, both at €1 per share. The fund will use part of the proceeds from the latest offering to finance the acquisition of the controlling stake in a publicly traded real estate company, Deutsche Real Estate AG. Upon completion of the acquisition, Summit Germany will own a portfolio of 76 commercial properties.
Summit CEO Zohar Levy said, "We believe that the German real estate market has potential for strong capital growth. This fundraising will enable us to secure attractive new properties within a relatively short period of time and increase our portfolio to more than €1.3 billion.”
Published by Globes [online], Israel business news - www.globes.co.il - on June 20, 2007
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