Arazim Investments Ltd. (TASE: AZRM) has signed an agreement to buy 64 British assisted living facilities from Southern Cost for ₤218 million (NIS 1.8 billion). Southern Cost, the second largest operator of assisted living facilities in the UK, will lease back the properties for an average of 26 years. Arazim will finance ₤22 million of the price from its own resources, and the rest from external sources.
Rent will total ₤11 million for the first year, rising 2.5% a year.
Arazim posted a net profit of NIS 43.2 million for the first half of 2005, and is likely to post a net profit of NIS 98.2 million fore the year. It recently announced two real estate deals by its subsidiary, Caldor. In two transactions, Caldor sold 22 properties leased to Britain’s Lloyds TSB plc (LSE:LLOY; NYSE:LYG).
In the first transaction, Caldor sold 16 properties for NIS 65 million, and Arazim is expected to make a NIS 30 million capital gain. In the second transaction, Caldor sold six properties for NIS 67 million, and Arazim is expected to make a NIS 25 million capital gain. Altogether, Arazim will make a NIS 55 million capital gain, which will be reported in its financial report for the third quarter of 2005.
Published by Globes [online], Israel business news - www.globes.co.il - on September 7, 2005