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Israeli Company Buys Hp Property & then Leases it Back to Hp
Amot buys HP building in Yehud for NIS 236m
HP Israel will lease back the property, used for its R&D center, for seven years at NIS 18.5 million a year.
By Shlomit Tsur
Amot Investments Ltd. has bought three buildings housing HP Israel’s R&D center in Yehud for NIS 236 million, plus VAT in a buy and lease-back deal. Amot will finance the acquisition from its own resources.HP Israel will lease the property for seven years, with two options to extend, one for three years and the second for four years. Rent is linked to the Consumer Price Index (CPI). Amot will see net operating income (NOI) from the rent of NIS 18.5 million a year, at NIS 60 per square meter for the 22,000-square meter complex, and NIS 370 per parking space for the 574 parking spaces. Rent will rise by 5% if HP exercises its option to renew the lease.
Amot is the domestic income-producing properties arm of Alony Hetz Property and Investments Ltd. (TASE: ALHE).
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