Aspen Group Ltd. (TASE:ASGR) has expanded into the Netherlands, with the purchase of a distribution and logistics center in the city of Zwolle for €18.6 million (about NIS 90.3 million).
The 27,500-square meter logistics center is leased to Office Depot Inc. (NYSE: ODP) under an 18.5-year lease at €1.43 million a year in rent. The return on investment is 7.7%. Aspen took a €14 million (NIS 68 million) non-recourse loan from a Dutch bank to finance 75% of the purchase.
Zwolle is 115 kilometers (about 70 miles) northeast of Amsterdam.
Aspen Group CEO Guy Pereg said, "The Dutch property is leased to Office Depot for over 18 years, and is financed at attractive terms. We therefore believe that it will contribute great value to Aspen over the years."
Aspen Group's share price was unchanged in morning trading at NIS 5.06, giving a market cap of NIS 240 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 7, 2010
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