| Purchase of Property in Canada |
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Date:
2/9/2007
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Source:
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Winnipeg Square, Canada
Notice is hereby given that a wholly owned foreign corporation of the Company has purchased 60% of the rights in an Income Producing Property in the city of Winnipeg, Canada. The primary details of the transaction are as follows:
• The purchase price (100%) of the property before expenses is C$ 102.5 M (approx. NIS 406.9 M) plus related expenses in the sum of approx. C$ 1.5 M (approx. NIS 6 M).
• The property consists of a 32-floor class A office building and an underground shopping center, situated in the business center of the city of Winnipeg in Canada. The property’s net area for lease totals approx. 55,500 m2 plus about 345 underground parking spaces. Furthermore, there are buildings rights for some 62,000 m2 of additional leasing areas.
• The building is leased to various tenants for different periods. The principal tenants are the Government of Canada, the Deloitte and E&Y accounting firms, the Canadian Railway company and several law firms. The current occupancy rate of the property is approx. 94%.
• The average gross annual rent (100%) amounts to approx. C$ 17.25 M (approx. NIS 68.5 M) and after the deduction of management and maintenance expenses, the net average annual rent totals approx. C$ 8.35 M (approx. NIS 33.1 M), representing a yield of approx. 8.0% on the purchase price.
• A financial institution in Canada has provided a loan to finance the transaction (100%) in the sum of C$ 75.75 M (approx. NIS 300.7 M), bearing fixed interest at a rate of 5.72% p.a. for a term of 10 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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