Shlomo Real Estate: Acquisition of ECI Telecom, a total of 26 acres of land, for NIS 170 million

Shlomo Real Estate continues to swing and report a record deal since its inception: Acquisition of telecommunications company ECI Telecom, a total of 26 acres of land, for NIS 170 million including transaction costs.
The land on the border of Petah Tikva and Givat Shmuel, in the Kiryat Matalon area of ​​employment, includes built-up area of ​​approximately 8,000 square meters. The approved building rights for the land are approximately 85,000 square meters and are intended for offices, a high-tech industry and employment. Shlomo Real Estate intends to work to increase building rights and add more land use uses.
In addition to entering into the purchase agreement, the companies entered into a lease agreement under which ECI Telecom will continue to lease most of the property, including all built up areas, until October 2023 in exchange for annual rent of NIS 4 million.
Israel Reif, Shlomo Real Estate Chairman, commented: "This transaction represents a significant milestone in Shlomo Real Estate activity and, once again, demonstrates Shlomo Real Estate's proven ability to locate and acquire attractive assets in major cities, with extensive business operations, Transportation accessibility, and potential for improvement. We intend to work to increase the rights of construction and expansion of land use, to initiate a mixed and centralized mixed use complex, similar to complexes located in large and developed urban centers. This deal represents a direct continuation of Shlomo Real Estate's confidence in Petah Tikva and Givat Shmuel and the future. Shlomo Real Estate will continue to acquire and develop high-quality real estate properties in Europe and Israel. "
Completion of the transaction is subject to the completion of a merger transaction between ECI and third parties, and until July 1, 2020, which, unless finalized as stated, will give the company the first refusal to purchase the property for a specified period of time in the agreement.