HERZLIYA, Israel, Feb. 11, 2020 /PRNewswire/ -- Optibase Ltd.
(NASDAQ: OBAS), or Optibase, today announced that its wholly owned
European subsidiary, Optibase Bavaria GmbH & Co. KG, had
entered into a definitive agreement with an unrelated third party
buyer, to sell its retail portfolio in Germany comprised of twenty-seven (27)
separate commercial properties, located in Bavaria, Germany, for an aggregate cash consideration
of EUR 35 million (app. $38.9).
The closing of the transaction is subject, among other things,
to customary conditions, including (i) the waiver of a right of
first refusal by the main tenant; and (ii) the waiver by the local
municipalities of their right of first refusal on each of the
properties. The exercise of the right of first refusal in regard to
certain properties, will not affect the closing of the
transaction with respect to the other properties.
The closing will be conducted in tranches with respect
to certain groups of properties and is expected to occur over
the course of first and second quarters of 2020.
Optibase expects to generate capital gains, net of expenses,
from the above transaction of approximately EUR 6 million (app. $6.7).
Commenting on the transaction, CEO of Optibase, Amir Philips, said, "We are very pleased to
engage in this transaction. This sale allows Optibase to both
achieve compelling returns for our investors and generate
significant liquidity, which among other uses, will help accelerate
our ongoing activities."
About Optibase
Optibase invests in the fixed-income real estate field and
currently holds properties and beneficial interest in real-estate
assets and projects in Switzerland, Germany, Texas, Philadelphia,
PA, Miami, FL, and in
Chicago, IL, USA and is currently
looking for additional real estate investment opportunities.
Optibase was previously engaged in the field of digital video
technologies until the sale of its video solutions business to
Optibase Technologies Ltd., a wholly owned subsidiary of VITEC
Multimedia in July 2010. For further
information, please visit www.optibase-holdings.com.
This press release contains forward-looking statements
concerning our marketing and operations plans. All statements other
than statements of historical fact are statements that could be
deemed forward-looking statements. All forward-looking statements
in this press release are made based on management's current
expectations which involve risks, uncertainties and other factors
that could cause results to differ materially from those expressed
in forward-looking statements. These statements involve a number of
risks and uncertainties including, but not limited to, difficulties
in finding suitable real-estate properties for investment,
availability of financing for the acquisition of real-estate,
difficulties in leasing of real-estate properties, insolvency of
tenants, difficulties in the disposition of real-estate projects,
risk relating to collaborative arrangements with our partners
relating to our real-estate properties, risks relating to the full
consummation of the transaction for the sale of our video solutions
business, general economic conditions and other risk factors. For a
more detailed discussion of these and other risks that may cause
actual results to differ from the forward looking statements in
this press release, please refer to Optibase's most recent annual
report on Form 20-F. The Company does not undertake any obligation
to update forward-looking statements made herein.
Media Contacts:
Amir Philips, CEO, Optibase Ltd.
011-972-73-7073-700
info@optibase-holdings.com
Investor Relations Contact:
Marybeth Csaby, for Optibase
+1-917-664-3055
Marybeth.Csaby@gmail.com
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SOURCE Optibase Ltd.