Summit Real Estate Holdings continues to expand its operations in the United States while taking advantage of market opportunities, and at the same time begins a course of significant value flooding in the commercial properties it has acquired over the past year.
The company updates today that its foreign subsidiary has entered into agreements to purchase two shopping centers in the United States, for a total of about $ 80 million. Thousands of square meters. The average occupancy rate of the properties is about 75%, and the annual income from the properties, based on existing contracts, net of operating expenses, is about $ 14 million.
The acquisition of one of the commercial centers, located in Pennsylvania, for a total consideration of approximately $ 55 million, has been completed. The completion of the acquisition of the second commercial center, located in Michigan, for a total consideration of approximately $ 25 million, is expected in the coming weeks. Following the completion of the contract, and other contracts recently reported by the company, Summit will hold 14 commercial properties in the United States, with an area for rent of approximately 600,000 square meters and a land area of approximately 2.8 million square meters, all of which it acquired this year.
At the same time, Summit reports that it has begun realizing parts of the commercial assets in its possession, while flooding value for this activity. Summit updates that of the commercial properties whose acquisition has been completed so far, the subsidiary has sold and is negotiating the sale of sub-plots totaling approximately $ 41 million, of which agreements have already been signed for the said sale amounting to approximately $ 15 million. Sold amounts to about $ 800,000 per year, and revenues from all the plots for sale total about $ 2.2 million.These figures actually illustrate Summit’s flooding of value in these properties, in a relatively short period, which is reflected in a significant return on investment without significant declines in commercial centers.
In parallel with its activities in the field of shopping centers, Summit has been operating in New York for the past year and has accumulated a significant portfolio of apartments for rent throughout the city. Following the completion of the acquisitions recently reported by the company, the portfolio will include over 2,500 housing units. Summit is working to expand this activity and is negotiating the purchase of additional residential buildings in the city.
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