Lahav AL updates that it has signed a binding agreement, in an opportunistic and creative transaction, for the purchase of a commercial property that serves the needs of a population in Germany, for a consideration of approximately 2.615 million euros, reflecting 774 euros per built square meter (approximately 2.9 million euros including transaction expenses).
The company purchased a mostly empty commercial property and rented it 100%, to quality and strong tenants, for long periods (about 10 years), before signing the purchase of the property. So the property that was sold mostly empty and at an opportunity price, became 100% occupied, on the day the agreement was signed by the company.
The annual interest on the property amounts to approximately 308.28 thousand Euros, which represents a return per transaction (CAP) of approximately 11.79%, a return on equity of approximately 17.9% and an FFO return of approximately 22%.
A document of principles was received from a local bank for a loan of approximately 2 million euros for a period of 15 years, a non-recourse loan, without covenants related to the value of the assets, at a fixed annual interest rate of approximately 3% nominal, not indexed.
The commercial center is located in the city of Worslen in Germany, where the company has long-term leased two properties that serve the needs of the population. The property is located close to major traffic routes and public transportation systems and about a 45-minute drive from the city of Dusseldorf, close to the border between Germany, the Netherlands and Belgium, and is a huge shopping center and a large employment area serving the cities of Worcester and Essen. Adjacent to the property are well-known and high-quality chains, such as: ALDI, METRO, Kaufland and McDonald’s and KFC food chains.
The property is located on an area of 4,736 square meters on which a 3,380 square meter commercial center is built, with 2 floors including 33 parking spaces belonging to the property.
X2O is a large chain of household products, with over 45 branches in Germany, the Netherlands and Belgium, committed to invest in the rental no less than 600 thousand Euros in an agreed specification that includes, among other things, a new floor, new air conditioning systems and new electronic systems and more.
The total equity includes transaction expenses about 968 thousand euros.
At the beginning of the month, the company informed about receiving an A3 rating with a positive outlook for the bonds, new series C, in the amount of up to 180 million NIS to be issued by the company. The proceeds of the raising are intended for the company’s current activities. The rating corresponds to the company’s rating and the series bonds B, which is traded on the stock exchange.