The company bought 60% and Kamor bought 10% of the building, which is leased to Dresdner Bank.
Electra Real Estate Ltd. (TASE:ELCRE) and Kamor Ltd. (TASE: KMOR) have bought bought 70% of a Frankfurt, Germany, office building at a value of €200 million, plus €17 million in related costs. Electra Real Estate bought 60% of the property through a wholly owned subsidiary, while a subsidiary of Kamor, in which it owns a 50% stake, bought 20%. The 35,500-sq.m. building in the city’s central business district was built in 2003.
The building is leased to Dresdner Bank in a lease with no exit option through 2013, and a five-year option to extend. Net rent is €14 million on the property as a whole.
The companies financed the purchase with €16.7 million from shareholders’ equity, based on value of the property, plus one non-recourse seven-year loan of €193 million at 5.43% fixed interest, and a second non-recourse seven-year loan of €11.8 million at LIBOR + 2%.
Published by Globes [online], Israel business news - www.globes.co.il - on April 29, 2007
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