Further to the Company’s regarding the sale of the Company’s properties’ portfolio as of Montreal, Canada (hereinafter: the “Portfolio”) as well as regarding the sale of rights to five properties in the said Portfolio up to date, the Company hereby states that two foreign corporations of the Company (hereinafter: the “United Companies”) which owns 90% of the rights to property at the two remaining properties in the Portfolio (hereinafter: the “Properties”), have signed an agreement with a third party regarding the sale of their rights to the Properties, for a total amount (100%) of 50 million Canadian Dollars (appx. 168.3 million NIS).
The Properties subject of the sale transaction are two office buildings with a total area measured at appx. 26,900 m2.
The Properties’ sale transaction is subject to the fulfillment of pending warranties as were set in the sales agreement, and is expected to be accomplished on the first quarter of year 2014.
After deduction of repayment of the bank loans the Company received for financing the purchase, after payment of the costs bound to the sale transaction’s accomplishment and after payment of taxes for the income, the free cash flow originated to the United Companies due to the sale of property is appx. 23.1 million Canadian Dollars (appx. 78 million NIS).
The Company expects that after the transaction’s expenses and after tax payment, the gross profit to be registered by the United Companies will be of appx. 0.9 million Canadian Dollar (appx. 3 million NIS) due to the transaction.
The information provided in this immediate report regarding the transaction’s impact on the Company’s finances, regarding the cash flow to be originated to the Company and regarding the time of accomplishment of the transaction is future forecast information, assuming the accomplishment of engagement with the third party as provided above, and is based on the Company’s expectations regarding the costs bound to the sale transaction’s accomplishment, regarding final price adjustments, if such shall take place, and regarding the date of fulfillment of the pending warranties for the purpose of accomplishment of the transaction. This information may not be implemented or may be implemented differently than predicted in the expectations, inter alia, if the Company’s expectations will be implemented differently than predicted.