Aspen buys building in German airport

The property is fully rented to a company that manufactures products for airplane interior designs.

Aspen Building And Development Ltd. (TASE:ASBD) subsidiary Aspen Real Estate Ltd. (TASE:ASRE) has bought an office and logistics building in the Hamburg airport in Germany for about NIS 18 million (about €3.4 million).

The property is fully rented to a company that manufactures products for airplane interior designs. The lease is for ten years, with an option for an additional five years. Annual rent from the property is about €350,000, with annual increases of €10,000 per year.

The rental income represents a yield of 10% on the acquisition price.

Aspen said that it received a letter of intent from a German bank to grant Aspen a five-year loan of €2.7 million, representing about 78.7% of the total price.

Aspen shares closed yesterday at NIS .817.

Published by Globes [online], Israel business news - www.globes-online.com - on March 4, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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