| six income-yielding properties in West Germany. |
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Date:
16/8/2006
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Source:
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FDK portfolio in West Germany.
Electra Real Estate Ltd. ("the Company") hereby gives notice that a wholly owned subsidiary of the Company has acquired 50% of the rights in a portfolio composed of six income-yielding properties in West Germany. The main points of the transaction are set out below:
• The purchase price of the properties (100%) before expenses is approx. € 52.2 million (approx. NIS 294.9 million), plus ancillary expenses of approx. € 4.5 million (approx. NIS 25.4 million).
• The properties - ○ Frankfurt - a complex of three office buildings having a total area of approx. 16,000 sq.m., together with an adjacent parking building with 125 covered parking spaces. ○ Dusseldorf - two neighbouring office buildings with a total area of approx. 4,650 sq.m. ○ Bad Hamburg - a commercial centre having a total area of approx. 6,500 sq.m., together with approx. 150 parking spaces.
• The properties are let to various tenants for different terms. The main tenants in the portfolio are: the Government of Germany; the management of the Steigenberger Hotel chain; UBS Bank; the Turkish Oyak Anker Bank; and the Toom retail chain. The properties are 100% occupied.
• The net annual rent from all the aforegoing properties (100%) totals approx. € 3.9 million (approx. NIS 22.0 million), which constitutes a return of approx. 7.5% on the purchase price. All the routine management and maintenance expenses in respect of the properties are paid by the tenants. The rent is linked to the German consumer price index.
• A foreign financial institution has provided a loan for a seven year term to finance the transaction (100%) in the sum of € 42.65 million (approx. NIS 241.0 million), constituting approx. 82% of the property purchase price, at fixed interest of 5.31%.
• The loan is secured by a first-ranking fixed charge over the properties and the receipts from them, and it is a non-recourse loan to the Company.
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| 38 Lyoner st. Frankfurt |
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| 38a Lyoner st. Frankfurt |
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| 40a Lyoner st. Frankfurt |
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| 11 Cecilienallee st. Düsseldorf |
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| 12 Homberger st. Düsseldorf |
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| Toom Bad, Hamburg |
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