Electra Real Estate Ltd. (TASE:ELCRE) has bought 70% of the portfolio rights of a company, comprising two office buildings and a hotel in Germany at a value of €77.1 million (NIS 424 million), plus €4 million (NIS 22 million) in ancillary costs. Electra Real Estate’s share in the deal, carried out through a wholly owned foreign subsidiary, is €54 million (NIS 297 million).
The two office buildings are in Saarbrucken, and leased to Deutsche Telekom and Deutsche Post. Net rental income is €6.1 million (NIS 33.6 million) a year. The hotel is in Nuremburg, and generates a net rental income of €400,000 (NIS 2.2 million) a year.
Total annual rent from the three properties is €6.5 million (NIS 35.8 million), giving a return on investment of 8.4%. The rent is linked to the German Consumer Price Index (CPI).
Electra Real Estate will take a €69.15 million (NIS 380.3 million) fixed-interest five-year loan from a German financial institution, amounting to 90% of the purchase price.
Published by Globes [online], Israel business news - www.globes.co.il - on February 5, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007