Medipower is expanding its operations in the US: acquires five open commercial centers in the Philadelphia area

Medipower is expanding its operations in the field of income-producing real estate in the United States. The real estate company has announced that it has signed a non-binding letter of intent for the purchase of five open commercial centers in the Philadelphia area of ​​the state of Pennsylvania in the United States, in a total area for rent of approximately 67,000 square meters. The purchase price is $ 115 million (approximately NIS 380 million). Medipower (-0.15% 596.2) will acquire the complexes together with another company and stated that the company intends to finance at least 65% of the purchase price through a loan from financial corporations.
Upon completion of the acquisition, Medipower will hold 80% of the assets and the partner company will hold 20%.
According to the presentations presented by the seller, the current net operating income (NOI) of the properties is about $ 8 million per year, the average rental contracts are about six years, while the average rental contracts of the supermarkets are about 9.4 years, the total occupancy rate (including supermarkets) Stands at about 89% and the average rent per square meter is about $ 12 per month.
Medipower CEO Ron Stern said that “Medipower exhibited business resilience during the Corona crisis, thanks to the fact that most of the trading space in the company’s assets is leased to supermarkets and pharmacies, which are defined as vital sectors. "This conduct was the basis of our success today in signing a memorandum of understanding for a strategic deal for Medipower in the amount of approximately $ 115 million."
Medipower operates in the field of commercial income-producing real estate and includes the purchase of real estate properties, their rental, improvement and operation. The Medipower Group operates in two main geographical areas, the United States and Canada. In addition, the company has insignificant commercial real estate activities in Bulgaria.