| Purchase of Property in Germany |
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Date:
4/7/2007
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Source:
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B.M.W, Munich, Germany.
Please be advised that a wholly-owned foreign subsidiary of the Company has purchased 50% of the rights in an Income Producing Property in the city of Regensburg near Munich, Germany. The principal details of the transaction are as follows:
• The property purchase price (100%) before expenses is approx. € 45.1 M (approx. NIS 259.3 M) plus related expenses in the sum of approx. € 3.1 M (approx. NIS 17.8 M).
• The property is spare parts facility and a logistic center of BMW car manufacturer, situated in the city of Ravensburg, near Munich, Germany. The net area of the property for lease totals approx. 43,000 sq.m.
• The building is leased in its entirety to BMW, under a lease agreement up to December 2033, with an early termination option in December 2018.
• The net annual rent amounts to approximately € 3.0 M (approximately NIS 17.25 M). The rent has an 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 (100%) in the sum of € 40.85 M (approx. NIS 234.9 M), bearing fixed interest at a rate of 5.37% 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.
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| B.M.W, Munich, Germany. |
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