Electra Real Estate Ltd. (Hereinafter The Company) – Immediate Report
The Company is hereby announcing that the Company's foreign company (Hereinafter The Consolidated Company) that holds 100% of the rights to the earning asset in Germany (Hereinafter The Asset), yesterday signed a transaction with a third party for the sale of its rights to the Asset for Euro 24 million (approximately NIS 102 million).
The sold Asset is an office building located around Stuttgart Germany, occupying a total of 26,800 square meters.
As a result of the sale, the Consolidated Company is expected to record a profit after tax of Euro 2.2 million (approximately NIS 9.5 million) for the 2015 tax year.
Free cash flow to be generated for the Consolidated Company as a result of the sale of the asset, less the bank loan obtained to finance its purchase and payment of costs involved in execution of the sales and following payment of income tax is Euro 18.3 million (approximately NSI 78 million).
Completion of the transaction, subject to compliance with all of the conditional terms in accordance with the Sales Agreement, is expected in the first quarter of 2016.
The information in this immediate report regarding the impact of the transaction on the financial results of the Consolidated Company, cash flow to be generated for the Consolidated Company and timing of the completion of the transaction, is forward looking information that presume completion of the engagement with the third party as specified above, and is therefore based on the Company's premises regarding the costs involved in executing the transaction and liabilities for income taxes, to adjustments of the final price that might occur in the transaction and with regards to the date of compliance of the conditional terms for completion of the transaction. This information might not materialize, or might materialize differently than expected, inter alia, if the Company's premises materialize differently than expected