Income-producing property company Optibase Ltd. (Nasdaq: OBAS) has signed an agreement acquire 4% in a portfolio of Texas shopping centers for about $4 million.
The acquisition is being made together with other private and institutional investors in a joint venture that will buy 49% of the beneficial interests in the shopping center portfolio. The shopping center portfolio includes more than two million square feet of leasable area in the Houston, Dallas, and San Antonio areas of Texas.
The deal is based on a portfolio valuation of $342 million including existing nonrecourse mortgage financing in the principal amount of about $252 million. The primary mortgage loan has a fixed interest rate of 5.73% and matures in April 2016.
Optibase CEO Amir Philips said, “We are very pleased to have the opportunity to invest in this transaction together with leading private and institutional investors complemented by a highly capable management team. This investment is our first acquisition of retail properties in the US as we continue to grow and diversify our real estate portfolio.”
Published by Globes [online], Israel business news - www.globes-online.com - on December 20, 2012
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