HERZLIYA, Israel -- (Business Wire)
Optibase Ltd. (NASDAQ: OBAS) (the “Company” or “Optibase”)
today announced that its wholly owned European subsidiary (the "Purchaser"),
entered into a Purchase Agreement with an unrelated third party to
acquire a retail portfolio of twenty-seven (27) supermarkets in Bavaria,
Germany (the "Transaction Portfolio"). The purchase price to
be paid by the Purchaser in to acquire the Transaction Portfolio is
approximately twenty-nine million seven hundred and fifty thousand Euros
(EUR 29,750,000). In addition to the Purchase Price, the Purchaser will
incur acquisition costs, including real estate transfer taxes of
approximately two million four hundred thousand Euros (EUR 2,400,000).
The acquisition of 17 of the properties in the Transaction Portfolio is
subject to (i) the waiver of a right of first refusal by the main tenant
and (ii) the waiver by the local municipalities of their right of first
of refusal on each of the properties. If the main tenant or the local
municipalities exercises their right of first refusal on any of the
properties in the Transaction Portfolio, those designated properties
will be excluded from the acquisition and an adjustment will be made to
the purchase price.
The Purchaser intends to finance the purchase price for the Transaction
Portfolio with a senior mortgage lender. The closing of the Transaction
is expected to occur on or before the end of the first quarter of 2015.
Amir Philips, the CEO of Optibase, commented: "This is Optibase's first
acquisition in Germany and we are very excited to enter this robust real
estate market. This acquisition will further diversify our investment
and holding portfolio and will allow us to set foot in what is
considered by many the biggest and strongest real estate markets in
Europe. Furthermore, we continue to look for more opportunities to
expand our real estate portfolio in Europe and the United States."
About Optibase
Optibase invests in the fixed-income real estate field and currently
holds properties in Switzerland and in Miami, Texas and Philadelphia,
USA and is currently looking for additional real estate investment
opportunities. Optibase was previously engaged in the field of digital
video technologies until the sale of its video solutions business to
Optibase Technologies Ltd., a wholly owned subsidiary of VITEC
Multimedia (“Vitec”) in July 2010. For further information, please visit www.optibase-holdings.com.
This press release contains forward-looking statements concerning our
marketing and operations plans.All statements other than
statements of historical fact are statements that could be deemed
forward-looking statements. All forward-looking statements in this press
release are made based on management's current expectations which
involve risks, uncertainties and other factors that could cause results
to differ materially from those expressed in forward-looking statements.
These statements involve a number of risks and uncertainties including,
but not limited to, difficulties in finding suitable real-estate
properties for investment, availability of financing for the acquisition
of real-estate, difficulties in leasing of real-estate properties,
insolvency of tenants, difficulties in the disposition of real-estate
projects, risk relating to collaborative arrangements with our partners
relating to our real-estate properties, risks relating to the full
consummation of the transaction for the sale of our video solutions
business, general economic conditions and other risk factors.For
a more detailed discussion of these and other risks that may cause
actual results to differ from the forward-looking statements in this
press release, please refer to Optibase's most recent annual report on
Form 20-F.The Company does not undertake any obligation to
update forward-looking statements made herein.
Contacts:
Media Contacts:
Optibase Ltd.
Amir
Philips, CEO
011-972-73-7073-700
info@optibase-holdings.com
or
Investor
Relations Contact:
Marybeth Csaby for Optibase
+1-917-664-3055
Marybeth.Csaby@gmail.com
Source: Optibase Ltd.
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