Ramat Gan, September 12, 2021
The Israel Securities Authority
The Tel Aviv Stock Exchange
Dear Madam / Sir,
Re: Acceptance of the Company's Offer to Purchase the Property Known as "Zrifin Logistic Park"
The Company is delighted to report that on September 9th, 2021, it has received official notice from the Managing Company of the Jewish Agency for Israel's Pension and Trust Fund (herein: "The Seller" and "The Seller's announcement", respectively), regarding its acceptance of the Company's offer to purchase as is and in full, the rights belonging to the Seller in the compound known as "Zrifin Logistic Park" (herein: "The Compound") for the price of NIS 1,518 million, plus VAT (herein: "The Purchase Price").
A. General Details Regarding the Compound
1. The Compound entails 274 dunams, of these 224 are designated for industry, storage and offices, and approximately 50 dunams are designated for roads, private and public open areas. The Compound contains 18 logistic structures at a total constructed area of 113,000 square meters.
2. The Compound is located within the Regional Council Sdot Dan, on the east side of Road 44 (Ramla-Bet Dagan Road), adjacent to Moshav Nir Zvi and to Assaf Harofeh Hospital and Zrifin junction. Distance from Tel Aviv – 10 KM.
3. Based on the information provided by the Seller, the existing logistic buildings are leased as of the date of this report at full occupancy, under diverse lease agreements, to 28 lessees (herein: "Lease Agreements"), with the cumulative sums for these lease agreements at a total annual amount of NIS 56 million (including management fees). As part of this sale, all of the Seller's rights and obligations under these agreements shall be transferred in full, in accordance with the Lease Agreements.
B. Payment Schedule
1. In accordance with the conditions determined by the Seller, the Agreement (herein: "The Sale Agreement") shall be signed within seven business days from the date of notification by the Seller, and the fee shall be paid according to the following payment schedule:
1.1. The first payment for purchase of the Compound shall be paid upon the date of signing this Agreement, and shall be 30% (thirty percent) of the price, plus VAT.
1.2. The remainder of the Price, plus VAT, shall be paid no later than October 10, 2021.
2. In addition to the purchase price, the Company shall pay a purchase tax of 6% of the Purchase price
It is the Company's intention to finance the payment of the purchase price from its own resources and/or by leveraging its credit and/or by external financing through raising of capital and/or debt, while maintaining a degree of financial leverage that is similar to its existing level.
D. The Company's Plans for the Compound
It is the Company's belief that the Compound has distinct value due to its proximity to the major cities of central Israel, as well as its size, its accessibility to major roadways, and its inherent potential for development and improvement along with its existence as a high-yield property that yields a continuous cash flow, which may be developed in stages. The purchase of the Compound is part of the Company's strategy for expanding its logistics and storage sectors, a sector that is undergoing powerful growth in being a central component of online commerce. The Company intends to develop and improve the Compound as part of the urban plan that applies to the Compound, which allows for storage at a height of 18 meters (currently less than half of the storage volume rights are exercised), and/or as part of initiating a new urban plan for the Compound.
Amot Investments Ltd.
Shimon Abudraham, CEO
Judith Zynger, Deputy CEO and CFO