We give you notice that a fully owned subsidiary of Electra Real Estate Ltd. has acquired 42% of the rights in a income-yielding property in Toronto, Canada, in which it holds 49% of the rights. After the additional acquisition, the subsidiary holds approx. 91% of the rights in the said property. Set forth below are the principal particulars of the transaction :
· The property comprises two adjacent office buildings of a total area of approx. 21,850 in Toronto, Canada. · The acquisition of 49% of the rights in June 2004 was according to a property value (100%) of CAN$ 34.8 million (approx. NIS 132.2 million). The acquisition of the additional 42% was according to a property value (100%) of CAN$ 40 million (approx. NIS 152.0 million).
· The present acquisition amount for the additional 42% is CAN$ 16.8 million (approx. NIS 63.8 million) and in addition ancillary expenses of approx. CAN$ 0.35 million (approx. NIS 1.3 million). 
·The property is leased to various tenants for different terms. The present occupation rate of the property is approx. 99%.
· The present gross annual rent (100%) totals approx. CAN$ 6.1 million (approx. NIS 23.2 million) and after deducting management and maintenance expenses, the net rent (100%) is approx. CAN$ 3.2 million (NIS 12.2 million).
· Today the property (100%) is financed by a loan from an overseas banking institution in an amount of approx. CAN$ 25 million (approx. NIS 95 million) with fixed interest of 6.16% for the period ending in June 2009.
· The loan is secured by a first ranking charge over the property and receipts from the property and is on non-recourse terms.