Optibase Ltd. Announces Purchase of Condominium Units in Miami Beach, FL,
HERZLIYA, Israel -- November 13, 2013
Optibase Ltd. (NASDAQ: OBAS) (the "Company" or "Optibase") today announced
that its board of directors approved the purchase by its wholly owned
subsidiaries Optibase FMC LLC and Optibase Real Estate Miami LLC, of twelve
luxury condominium units located in Miami Beach, Florida (the "Units") as well
as the leasing of one of the Units to one of the sellers for a 36-month
period. The sellers of the Units are subsidiaries of The Capri Family
Foundation, the Company's controlling shareholder.
The units are located on the Flamingo-South Beach One Condominium and the
North Tower of the Continuum on South Beach Condominium, Miami Beach, Florida.
At the closing of the agreement, Optibase will pay an aggregate purchase price
of approximately $8.8 million for the twelve condominium units. The purchase
price will be paid by the issuance of approximately 1.37 million newly issued
shares of the Company (of which approximately 67,000 ordinary shares will be
off set against the lease of one Unit). Accordingly, following the
consummation of the transaction, the Company expects to issue 1,300,581
ordinary shares of the Company representing approximately 25.4% of the
Company's issued share capital. The purchase price per share is based on the
average closing price of the Company's ordinary shares on the Nasdaq Global
Market during the 30 trading days preceding the signing date of the
The closing of the agreements is subject to the approval of the Company's
shareholders at its annual general meeting, to be held on December 19, 2013.
There can be no assurance that the agreements will be consummated. For further
information see the Company's Proxy Statement to be filed with the Securities
And Exchange Commission on Form 6-K.
Optibase invests in the fixed-income real estate field and currently holds
properties in Switzerland and in Miami, Texas and Philadelphia, 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 www.optibase-holdings.com.
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.
Amir Philips, CEO
Investor Relations Contact:
Marybeth Csaby, +1-917-664-3055
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