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HAIFA, ISRAEL-A 1.83-million-sf real estate portfolio in Germany has been acquired for $217.44 million (euros 180 million) by Summit Real Estate Holdings Ltd, a locally headquartered public company listed on the Tel Aviv Stock Exchange. The portfolio includes 25 buildings in 12 different cities, all of which are completely leased to Deutsche Telekom for long terms. The properties are located in cities such as Berlin, Frankurt, Magdeburg, Dusseldorf, Nurenberg, Essen, Manheim and others. The portfolio generates an average annual net income, after maintenance costs, of approximately $16.92 million (euros 14 million), which means the property was acquired at a cap rate of about 7.8%. The properties were sold several years ago by Deutsche Telekom as part of a sale-leaseback transaction known as the Magenta portfolio and the Millenium portfolio. Summit acquired the portfolio by purchasing control over the German and Luxembourg companies that own the properties in three separate deals with German and European institutions. Summit is controlled by Zohar Levy in partnership with Clal Insurance Co., the largest Israeli insurance company. In a prepared statement, Levy says Summit will continue to focus its attention on the German real estate market, especially on properties with long leases and good tenants. “We are currently looking into further acquisitions of office buildings, as well as commercial and logistic centers throughout Germany,” he says.

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