Aspen buys 500-store lot in Switzerland

Annual rent represents a 6.25% yield on the purchase price.

Aspen Group Ltd. (TASE:ASGR) has bought a commercial lot in Biel, Switzerland, through a partnership in which Aspen owns a 50% stake, for CHF 50 million (NIS 176 million). The transaction is a buy and lease-back deal with DIY chain Hornbach, which fully leases the 3.5-hectare (8.75-acre) lot, which has 500 shops with 18,600 square meters of space altogether. Hornbach Holding AG (XETRA:HGH) has a 15-year lease with three five-year options to extend.

Annual rent from the property amounts to CHF 3.12 million, giving a 6.25% gross yield on investment.

Earlier this week, Aspen bought a 6,000-square meter industrial and office building in the Har Yona industrial zone in Upper Nazareth for NIS 49 million from RH Technologies Ltd. (TASE: RHTCH) controlling shareholder Yaakov Rosenberg, in a buy and lease-back deal. RH will pay NIS 4.9 million in annual rent under a 10-year lease, giving a 10% gross yield on the investment.

Published by Globes [online], Israel business news - www.globes-online.com - on March 25, 2010

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

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