Electra Real Estate buys Frankfurt building at €40m value

The company sold its stakes in two properties in Baltimore at a value of $78.9 million.

Electra Real Estate Ltd. (TASE:ELCRE) has bought 60% of a mixed use residential and commercial building in downtown Frankfurt, Germany, at a value of €40 million (NIS 220 million).The building has 62 rental apartments and 24,600 sq.m. of commercial space. All the apartments and commercial space is fully leased.

The commercial space is leased to the Metro retail chain through 2013 with no exit option at €2.53 million a year.

Electra Real Estate obtained a non-recourse five-year loan of €32.5 million (NIS 180 million), based on 100% of the property, at variable interest. The interest is currently 5.18%, and capped at 5.4%.

In a separate transaction, Electra Real Estate sold its stakes in two office buildings in Baltimore, Maryland, at an aggregate value of $78.9 million (NIS 319 million). The buildings were acquired in 2004, through a subsidiary. The company owns 72% of one building and 63% of the second. The subsidiary will make a net capital gain of $4.3 million (NIS 17.4 million) on a net cash flow of $16.5 million (NIS 66.6 million) on the sale.

Last week, the company bought 60% of a Frankfurt office building at a value of €200 million (NIS 1.1 billion).

Published by Globes [online], Israel business news - www.globes.co.il - on May 7, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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