Africa-Israel sells Global Park Lod

Lev Leviev
Lev Leviev

The buyers are Sella Capital and Reit 1.

Africa-Israel Investments Ltd. (TASE:AFIL) subsidiary Africa-Israel Properties Ltd. (TASE: AFPR) today notified the Tel Aviv Stock Exchange (TASE) that it had contracted an agreement to sell all its rights and liabilities in Global Park Lod for NIS 195.8 million to the Sella Capital real estate investment trust and Reit 1, which will each own 50% of the property.

If and when the deal is completed, it is expect to generate NIS 160 million in total cash flow net of tax for Africa-Israel, controlled by Lev Leviev. The company is expected to post a NIS 5.6 million revaluation profit in its 2016 financial statements.

Located in the Lod industrial zone, the property contains two office buildings next to each other with a total of 21,400 sq.m. and 660 parking places. 97.5% of the property is leased to 20 tenants under leases of up to five years, with Bank Leumi (TASE: LUMI) occupying over half of the space. The property is adjacent to Kiryat Keshev, also rented by Bank Leumi. Rent on the property reflects a 7.4% annual return.

The deal is subject to a number of suspending conditions, including approval from the Antitrust Authority director general and removal of the mortgage and liens registered for the property in respect of the financing provided to the seller by financing concerns.

When the announcement was made, Reit 1 CEO Shmuel Sayad said, "The property is in an excellent location in the Lod industrial zone. It is very accessible, has good tenants, and is adjacent to Kiryat Keshev. This is Reit 1's first acquisition in Lod; it fits the fund's strategy of diversifying its properties portfolio both geographically and in the type of properties."

Sella Capital CEO Gadi Elikam said, "This deal is suitable for the company's business strategy of buying properties with good returns that will continue generating value for investors - the public. The property is high-quality, and will expand the company's portfolio of properties and contribute to the continuing of its growth trend, because of its good tenants."

Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2016

Copyright of Globes Publisher Itonut (1983) Ltd. 2016

 
Lev Leviev
Lev Leviev
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