Optibase Ltd. Announces Investment in Texas Shopping Center Portfolio

  Optibase Ltd. Announces Investment in Texas Shopping Center Portfolio

Business Wire

HERZLIYA, Israel -- December 19, 2012

Optibase Ltd. (NASDAQ: OBAS) today announced that it had entered into an
agreement to acquire an approximately 4% beneficial interest in a portfolio of
Texas shopping centers.

The acquisition is to be undertaken by a wholly owned subsidiary of the
Company which will be a limited partner together with other private and
institutional investors in a joint venture that is expected to acquire 49% of
the beneficial interests in the shopping center portfolio.

The shopping center portfolio includes more than two million square feet of
leasable area and is located in Houston, Dallas, and San Antonio areas of

The transaction is based on a portfolio valuation of approximately $342
million including existing nonrecourse mortgage financing in the principal
amount of approximately $252 million. The primary mortgage loan has a fixed
interest rate of 5.73% and matures in April 2016.

At Closing, which is expected to occur during the coming weeks, Optibase will
make a capital contribution of approximately $4,000,000 and will become an
owner of approximately 4% of the indirect beneficial interests in the

Commenting on the transaction, CEO of Optibase, Amir Philips, said, “We are
very pleased to have the opportunity to invest in this transaction together
with leading private and institutional investors complemented by a highly
capable management team. This investment is our first acquisition of retail
properties in the United States as we continue to grow and diversify our real
estate portfolio.”

About Optibase

Optibase invests in the fixed-income real estate field and currently holds
properties in Switzerland and Miami, FL, USA and is currently looking for
additional real estate investment opportunities. Optibase was previously
engaged in the field of digital video technologies until the sale of its video
solutions business to Optibase Technologies Ltd., a wholly owned subsidiary of
VITEC Multimedia ("Vitec") in July 2010. For further information, please visit

This press release contains forward-looking statements concerning our
marketing and operations plans. All statements other than statements of
historical fact are statements that could be deemed forward-looking
statements. All forward-looking statements in this press release are made
based on management's current expectations which involve risks, uncertainties
and other factors that could cause results to differ materially from those
expressed in forward-looking statements. These statements involve a number of
risks and uncertainties including, but not limited to, difficulties in finding
suitable real-estate properties for investment, availability of financing for
the acquisition of real-estate, difficulties in leasing of real-estate
properties, insolvency of tenants, difficulties in the disposition of
real-estate projects, risk relating to collaborative arrangements with our
partners relating to our real-estate properties, risks relating to the full
consummation of the transaction for the sale of our video solutions business,
general economic conditions and other risk factors. For a more detailed
discussion of these and other risks that may cause actual results to differ
from the forward looking statements in this news release, please refer to
Optibase's most recent annual report on Form 20-F. The Company does not
undertake any obligation to update forward-looking statements made herein.


Media Contacts:
Optibase Ltd.
Amir Philips, CEO
Investor Relations Contact:
KCSA for Optibase
Marybeth Csaby, +1-917-664-3055
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