Notice is hereby given that a foreign subsidiary of the Company, holding 75% of a property in the City of London, Britain, has entered into a binding agreement for the sale of its holdings in the property.
The primary details of the transaction are as follows:
• The property being sold, in an inclusive area (100%) of approx. 2,400 m2, serves as an office building and is wholly leased to the London Police.
• The selling price of the property (100%) is ₤ 17.125 million (approx. NIS 100.2 million), representing a return of approx. 5.0% on the current rent.
• The Company is not expected to record a capital gain from the realization of the property beyond that recorded in its financial statements for previous periods within the framework of the item of fair value adjustments.
• The total gross cash flow (100%), before income taxes generated from the sale of the property, following repayment of the loan and the transaction costs, is approx. ₤ 4.8 million (approx. NIS 28.1 million), and the subsidiary's share is approx. ₤ 3.6 million (approx. NIS 21.1 million).
• The sale transaction is expected to be concluded by the end of March 2010.