Daniel Leventhal (Plain Photography)
Plains owned by businessman Alex Schneider realizes the “Regency Court” shopping center located near the city of Jacksonville, Florida at a profit of 57% relative to the cost of the property in the company’s books. Plains owns about 60% of the property with the remaining 40% held by the local partner.
The sale is made in exchange for about $ 23.1 million (about NIS 72.5 million), 4.6 times higher than the purchase price and at a premium of 57% on the value of the property in the books.
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The property was purchased in November 2017 with an occupancy rate of 34% and an annual NOI of only about half a million dollars and the cost of acquiring the property, including costs invested in the property over the years totaled about $ 5.9 million. After a series of operational operations performed by the company on the property after the acquisition, the occupancy rate rose to 100% and the annual NOI to approximately $ 1.8 million. The property is currently listed in the company’s books at a value of approximately $ 14.7 million.
After the completion of the transaction and the repayment of the loan taken by Mishorim and the local partner, the cash flow from the sale of the property (before tax) will be approximately $ 14.3 million (60% of the company). Completion of the transaction is expected during the second quarter of 2022 and will be subject to the payment of the balance of the consideration and acceptable conditions under such a transaction.
Under the agreement, the partnership will provide the buyer with a $ 5 million loan for a period of three years at an annual interest rate of 4.75% (or a loan at a lower rate and on terms to be determined between the parties depending on the scope and financing terms the buyer obtains from a financing entity). The loan is backed by a lien on the property in favor of the first-degree mortgage partnership.
Daniel Leventhal, CEO of Mishorim, said: “This is another transaction that reflects our ability to locate assets with significant potential, improve them and realize them at a price significantly higher than their value in the books, further evidence of the potential in our asset portfolio. This transaction joins a series of moves we have taken in recent months to realize assets and purchase new ones and we continue to work to improve the asset portfolio and create value for all our shareholders. “
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