Aspen Group Ltd. (TASE:ASGR) subsidiary Aspen Real Estate Ltd. (TASE:ASRE.B2; ASRE.B3) has bought a commercial center in Kirchberg, Germany, near the Frankfurt Hann Airport for €5.1 million (NIS 24 million). This is the company's third property purchase in Germany in recent months, following the purchase of a commercial center near Kassel for €2.9 million (NIS 14.5 million), and an office and logistics center at the Hamburg Airport for €3.4 million.
The 4,000-square meter commercial center, built on a 1.5-hectare lot, has 215 parking spaces, and is leased to a supermarket chain under a ten-year lease. Rent totals €446,000 (NIS 2.1 million) a year, giving a return on investment of 8.8%. The supermarket is a public company with 100 branches in Germany and Luxembourg.
The purchase is subject to Aspen obtaining financing by June 9, and the company is in talks with a German bank for this purpose. The company expects to close the deal by July 3.
Aspen CEO Ilan Gifman said, "We've bought a high-quality commercial center near the Frankfurt Hann Airport, about 100 kilometers from Frankfurt. The property is leased to a tier-1 tenant for ten years."
Aspen Group's share price fell 0.7% by midday to NIS 5.35, giving a market cap of NIS 206 million
Published by Globes [online], Israel business news - www.globes-online.com - on May 30, 2010
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