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Optibase Ltd. (NASDAQ: OBAS) today announced that it had acquired through its subsidiary an office building complex in Geneva, Switzerland known as Centre des Technologies Nouvelles (CTN) (the "
Property"). The acquisition was undertaken by OPCTN S.A. (“
OPCTN”), a Luxembourg company owned 51% by Optibase and 49% by The Phoenix Insurance Company Ltd and The Phoenix Comprehensive Pension (collectively, “
ThePhoenix”). OPCTN undertook the transaction by acquiring all of the ownership interest in the Property owner Eldista GmbH, a Swiss Company (“
Eldista”). The seller, Apollo CTN. S.a.r.l, is an entity majority owned by Area Property Partners.
Centre des Technologies Nouvelles (CTN) is a six-building complex located in the Plan-Les-Ouates business park in the outskirts of Geneva. The complex includes approximately 35,000 square meter (approximately 377,000 square feet) of primarily space and is a center for advanced industries including biotech electronic and information technology industries.
The transaction was based on a Property value of CHF 126,500,000 (approximately $136,540,000) including existing nonrecourse mortgage financing in the principal amount of CHF 85,250,000 (approximately $92,387,000) provided by Credit Suisse. The purchase price for the Eldista shares was CHF 37,921,000 (approximately $40,943,000) subject to a post-closing price adjustment to reflect Eldista’s assets and liabilities as of the closing date.
In connection with the transaction, Optibase and The Phoenix entered into an agreement regarding their shareholdings in OPCTN. The agreement provides that Optibase will make day-to-day decisions and provides The Phoenix with customary protective rights.
Following the transaction, Eldista will enter into a Consultancy Agreement with Swiss Pro Capital (“
SPC”), a Cypriot company which had introduced Optibase and The Phoenix to the Property. Under the Consultancy Agreement, SPC will provide consultancy services to Eldista regarding the administration and supervision of the Property and its management. SPC will receive a monthly fee for its services and will also be entitled to a bonus based on future performance above a certain return on the investment.
Commenting on the transaction, President and CEO of Optibase, Tom Wyler, said, “We are very excited about this acquisition and its prospects. This is Optibase’s second investment in Switzerland and its largest real estate investment to date. We are also excited to have the opportunity to join forces with The Phoenix, one of Israel’s largest institutional investors. We regard our partnership with The Phoenix as a vote of confidence in Optibase’s expertise in the European real estate market. He concluded “This acquisition significantly increases Optibase’s real estate portfolio and I believe that this acquisition will have a favorable impact on the Company’s bottom-line”