A foreign subsidiary of Electra Real Estate Ltd. (TASE:ELCRE) and a partner have bought ten income producing properties for €278.9 million (NIS 1.5 billion). Six of the properties are in the Netherlands and four are in Germany. Electra Real Estate's share of the deal is 70%. The properties are office buildings with an aggregate space of 103,600 sq.m. and 1,700 underground parking spaces. The properties are fully occupied.
This is Electra Real Estate’s largest deal since it was founded, and its first deal in the Netherlands.
Four of the Dutch properties are proximate to Schiphol Airport, one is in downtown Rotterdam, and one is The Hague. The four German properties are in Berlin, Hanover, Munich, and Dortmund.
The properties are leased to various tenants in contracts of varying periods. Aggregate net annual rent is €17.65 million (NIS 95.3 million).
Electra Real Estate and its partner are financing the purchase with a non-recourse five-year loan at 5.4% fixed interest of €269 million (NIS 1.45 billion).
Electra Real Estate CEO Shlomo Shraff said, “The present portfolio increases our inventory of high-quality properties in Western Europe, and expands our geographical dispersal with the entry into the Netherlands. We’ve made deals worth more than NIS 5 billion since the beginning of the year, and we’re looking at further expansion in Europe, North America, and the East Asia.”
Published by Globes [online], Israel business news - www.globes.co.il - on May 28, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007