Real estate deals abroad

Electra Real Estate said it bought a 50% stake in 9 office buildings in Germany for 41.7m. Euro.

December 19, 2005 07:53
1 minute read.
karl marx platz 88 298

karl marx platz 88 298. (photo credit: Courtesy)


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analysis from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Electra Real Estate on Sunday said it bought a 50% stake in nine office buildings in Germany for EU41.7 million. The remaining half was bought by a group of private investors. Eight of the buildings are located in Berlin and one in Frankfurt an der Oder, a city on the Polish border. Some 45% of the buildings' 72,800 square meters in total rental space is occupied by Deutsche Telekom and Deutsche Post, while the remaining space - consisting of both office and retail units - is vacant. Rent provided by the two German giants alone would total EU3m. annually, reflecting a 7.2% yield on the investment even if the remaining rental space stands empty. Filling the vacant property would boost the return "significantly," Electra noted. Electra told the Tel Aviv Stock Exchange that a German financial institution was providing EU37.1m. - 89% of the purchase's value - as a non-recourse loan at a fixed interest rate of 4.85% for five years. In another deal abroad, Jerusalem Economic Corporation notified the TASE that a fully-owned foreign subsidiary purchased eight commercial properties in southern France for roughly EU22.5m. Located in the vicinities of Grenoble, Marseilles and Toulouse, the properties cover 62,284 square meters of commercial floor space, and were expected to provide EU2.4m. in rent annually, or a 10.7% yield. Jerusalem Economic's subsidiary is negotiating with an unnamed French bank towards a loan to cover about 85% of the purchase.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

July 16, 2019
Mishab selling last 3 apartments in PT project


Cookie Settings