Medipower reports signing a letter of intent to purchase a shopping center in the U.S. state of Connecticut for $ 22.35 million.
The shopping center is anchored in a supermarket, in accordance with the company’s strategy, and covers a total area for rent of approximately 9,310 thousand square meters. According to the non-binding letter of intent, the current NOI of the purchased property is approximately $ 1.55 million per year. 3.8 years, the total occupancy rate of the property is about 85% and the average rent per square meter is about $ 18.5 per month. Medipower’s share in the deal is 80%, alongside a partner.
Medipower estimates that as long as a detailed agreement is signed and due diligence is completed to the company’s satisfaction, then the transaction to purchase the property will be completed during the second quarter of 2022.
Medipower’s management intends to finance at least 65% of the purchase price through a loan from a financial corporation.
Medipower completed in the third quarter of 2021 two strategic deals, the full impact of which will be reflected starting in the fourth quarter reports of the year. As part of this, a significant transaction was completed for the company with the acquisition (80% holding of the company) of a portfolio that includes 5 open shopping centers, anchored in supermarkets, in the metropolitan area of Philadelphia, Pennsylvania, USA for approximately $ 114.2 million (approximately NIS 370 million). Of a commercial center in the state of Georgia in the USA in exchange for a total of approximately $ 18.6 million (approximately NIS 60 million).
Medipower continues to show consistent growth in its financial results. The company estimates that the representing annual NOI currently stands at about $ 25 million and the representing annual FFO is about $ 12 million.