| Purchase of Property in Germany |
|
|
Date:
14/3/2007
|
Source:
|
AOK Insurance Building, Schwerin, Germany.
Please be advised that a wholly-owned foreign subsidiary of the Company has purchased 100% of the rights in an Income Producing Property in the city of Schwerin, Germany. The principal details of the transaction are as follows:
• The property purchase price before expenses is approx. € 30.9 M (approx. NIS 170.5 M) plus related expenses in the sum of approx. € 2.4 M (approx. NIS 13.2 M).
• The property is a 4-floor office building situated in the city of Schwerin, Germany. The net area of the property for lease totals approx. 14,560 sq.m. plus about 200 underground parking spaces.
• The building is leased in its entirety to the government medical insurance association, AOK Insurance, under a lease agreement up to June 2022 (some 15.3 years), without a termination option.
• The net annual rent amounts to approximately € 2.0 M (approximately NIS 11 M), representing a net yield of approx. 6.5% on the purchase price. The rent has a rent increase mechanism in accordance with the consumer price index in Germany. All ongoing management and maintenance expenses pertaining to the property are paid by the tenant.
• A financial institution in Germany has provided a loan to finance the transaction in the sum of approx. € 27.8 M (approx. NIS 153.5 M), representing approx. 90% of the property purchase price, bearing fixed interest at a rate of 5.25% p.a. for a term of 7 years.
• The loan is secured by a first fixed charge on the property and receipts from the property which are non-recourse to the Company.
|
 |
|
| AOK Insurance Building, Schwerin, Germany. |
|
|