Electra Real Estate closes giant acquisition in Holland and Germany
The NIS 1.5 billion portfolio purchase of office space is the biggest deal in the firm's history
Electra Real Estate (TASE: ELCRE) today revealed the biggest deal it's ever made, which is also its first in the Netherlands.
Together with partners, the company - which is controlled by Gershon Salkind - has agreed to buy a portfolio of 10 yield-generating properties in Germany and Holland for 278 million euros (NIS 1.5 billion).
Electra Real Estate's share of the deal is 70% or NIS 1.05 billion, it advised the Tel Aviv Stock Exchange today.
The company has been a busy bee. From the start of the year, it's closed more than NIS 5 billion worth of transactions, and that's its share of the transactions alone.
All the assets in the present deal are office space. Their total area is 103,600 square meters plus 1,700 underground parking spots, Electra Real Estate said.
In Holland, four of the sites are near Schiphol airport in the Netherlands and two are at the centers of Rotterdam and the Hague. The total area of the Dutch properties is 47,700 square meters.
Moving onto Germany, the total area is 55,900 square meters. One of the sites is in central Berlin, another is in central Dortmund, and two others are in Hanover and Munich.
The assets in both countries are leased to different tenants for different terms. Tenants of note include PwC, the Dutch communications company KPN, the Dortmund municipality, Kyocera, and the Dutch bank IDM.
The ten assets make 17.7 million euros a year in rental income, Electra Real Estate said, linked to the consumer price index in the respective countries.
Two foreign banks are providing Electra Real Estate with non-recourse loans totaling NIS 1.45 billion, or 269 million euros, backed by the assets themselves. Most of the sum is for five years and bears fixed interest of 5.4%.
Most of the deals Electra Real Estate closed this year are in Britain, India, the U.S. and Germany.
Electra Real Estate managing director Shlomo Sherf commented: "The present portfolio expands the company's inventory of quality assets in western Europe and extends the company's geographical span by entry into Holland."
He added that the company is examining additional investment opportunities in Europe, North America and eastern Asia.
Last month Electra Real Estate reported netting NIS 51.1 million for the first quarter of 2007 on revenues of NIS 192.4 million.
For the year 2006 it had reported netting a record NIS 288 million after adopting IFRS (international financial reporting standards), ahead of the time the Israeli regulator would have forced it to.