Ramat Gan, November 17 2015
To: To:
The Securities Authority The Tel Aviv Securities Exchange Ltd. Via MAGNA Via MAGNA
Re: Immediate Report - Purchase of Building by Carr Properties in the Washington DC Metropolitan Area
We hereby inform you that Carr Properties Corp (hereinafter: 'Carr') signed an agreement yesterday afternoon for the purchase of the office building known as Apex Site located at 7272 Wisconsin Avenue in Bethesda, Maryland for a sum of $105.5 million.
The building is Class B, with a total rental space of 15,000 m² (163,000 square feet) and is located in central Bethesda, at the site of the city's future central subway main station.
In addition, Carr signed an agreement with the sellers according to which the sellers would remove their offices from the purchased building and move to the 4500 East West Building owned by Carr, construction of which was completed this year. In accordance with the above, Carr shall rent the sellers a space of 6,000 m² (68,000 square feet), thus increasing the occupancy rate in the new building to 65%.
Carr intends to finance the building's purchase from its own resources and from a loan granted by the sellers in the sum of $53 bearing 4.5% yearly interest with its redemption date (full principal) being in 2020.
Carr deposited a $5 million advance payment upon signing the agreement.
Transferring ownership to Carr and closing the deal, while at the same time executing abovementioned the rental agreement, are planned for the first quarter of 2016, and as accepted, are subject to the completion of due diligence and the existence of various preconditions, including receipt of approval in principle for Carr's planned development plan by the relevant authorities as well as signing agreement to terminate the existing tenants lease agreement .
The information in this immediate report regarding the actions and events planned to take place in the future constitutes forward-looking information as defined in the Securities Law, 1968. This information is based on future data and Company estimates and there is no certainty that it will be realized in full or in part, due, among other things, to factors not under the Company's control.
Respectfully,
Alony Hetz Properties and Investments Ltd. By: Nathan Hetz, CEO
Moti Barzilay, Executive Vice President of Business Development
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