Aspen buys an office building for NIS 100 million – the capital market

The area of ​​the property is approximately 14.8 thousand square meters, it is leased to a number of tenants for an average period of 9 years, and its occupancy rate is approximately 93%. R.

In fact, Aspen acquired through a Dutch subsidiary the full share capital (100%) of the company that owns the building, which is located in the fourth largest city in the Netherlands. Aspen will pay NIS 55 million in cash for the shares, with the consideration reflecting the aforementioned value of NIS 104 million for the building itself, given the loan provided by the property company in the amount of NIS 56 million.

In an interview with BizPortal, Aspen CEO Tzofit Harel referred to activities in the Netherlands that are focused on renting offices. “This year we saw most tenants pay the full rent on time. I can count on one hand who asked for a discount, “she said, adding,” It proved to us how strong the Netherlands is and how right the investment was in it. ”

Harel also noted in the context of the move to work from home and the possibility of terminating contracts on the part of tenants that “we have not encountered tenants who said they want to return land. We may face tenants in the coming year testing their model, but I do not expect significant land returns. In my opinion, the work culture in the office with the social environment, the interaction and the discourse in the coffee corner or in the hallway will continue to be very significant. ”

“The acquisition of the property is another step in the implementation of the company’s strategy to expand its activities in the Dutch market,” Said Guy Poppy, chairman of Aspen Group. “This is the second property we are acquiring this year in the city of Utrecht, and in general we continue to identify potential for expanding our operations in the Netherlands while taking advantage of opportunities as they may be, both in the field of offices and logistics.

Last week, Aspen reported a huge deal to buy 50% of entrepreneur Shlomo Dahuki’s pie Siam company for NIS 405 million. In parallel with Aspen’s investment in Pai Siam, Dahuki will invest NIS 37 million in Aspen and hold 5% of its shares. Aspen Group ended the third quarter of 2020 with revenues of NIS 46 million and a net profit of NIS 26.1 million attributed to shareholders.

Aspen Group operates mainly in the acquisition, initiation, rental, management and improvement of income-producing properties, including offices, services, commerce, industrial buildings and logistics in Israel, the Netherlands and Germany. Pai Siam owns income-producing hotels, hotels under construction, sheltered housing and land in areas of demand in Tel Aviv and Jerusalem.