Ashtrom, Harel buy Dusseldorf building for €62m

90% of the 27,000 square meters office building is leased to HSBC for 7 years.

Ashtrom Properties Ltd. (TASE:ASPR) and Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) have jointly acquired another German property. The two companies today reported that they had signed an agreement to each buy 45% rights in an office building for an overall amount of NIS 298 million (about €62 million).

The building is one of Dusseldorf's most important business centers. It covers 27,000 square meters and has 440 parking spaces. 90% of the building is leased to HSBC for 7 years until December 2020 for an annual rent of NIS 20.2 million (about €4.18 million). The remaining 10% is leased to two tenants until March 2022 for annual rents totaling NIS 2.2 million (about €455,000). Total annual rent amounts to NIS 22.4 million (about €4.63 million) for a 7.5% return on the price of the asset.

Published by Globes [online], Israel business news - - on December 15, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

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