Real estate - להב

Commercial centers – Germany

Lahav L.R. began operating in commercial centers in Germany in 2012, and currently holds a portfolio of some 80 neighborhood commercial centers, and a hotel.

Germany has the largest population in Europe, and is the largest and most influential economy in the eurozone. The unemployment rate in Germany is traditionally low, and in recent years consumption has been growing.

The company’s strategy includes the acquisition, holding, management, and betterment of high-potential commercial centers. The properties are mainly neighborhood centers which serve the needs of the local population, and include supermarket and DIY chains, which are traditionally considered to be stable sectors.

As part of its strategy, the company reviews the quality of the tenants, the terms and conditions of the leases, and betterment potential, and it currently enjoys high rates of occupancy in its commercial centers. The company actively manages the centers and improves the properties by realizing their expansion potential, conducting renovations, bringing in new tenants, and extending the existing leases.

The strength of the company’s commercial centers was demonstrated at the height of the Covid pandemic when the majority of the centers continued to function as usual.

Wurselen
Acquired in	December 2016
Total GLA	3,582 sqm at the time of acquisition; since then a reconstruction has been carried out which split the property in a more functional manner and increased its area to 3,602 sqm
Occupancy rate	785 sqm were empty at the time of acquisition; 100% occupancy since the reconstruction
Main tenants	Medimax was the main tenant at the time of acquisition, and after the reconstruction in 2021 a furniture store from a large and well-known chain rented approx. 700 sqm, a fishing equipment store from a well-known chain rented approx. 1,060 sqm and a Chinese restaurant and kitchen company also rented space.
Lease period of main tenants	Chinese restaurant until 2036. Kitchen company until 2029. Fishing equipment store until January 2029 (with an early exit option after three years).
Annual rent income	~€250 thousand at the time of acquisition; currently ~€360 thousand
Property value according to an appraisal of June 30, 2020	€4.37 million
The Company’s share in the property	50%

Erfurt
Acquired in	January 2017
Total GLA	12,053 sqm
Occupancy rate	100%
Main tenants	Tedox – chain selling homeware and textiles, Multipolster – furniture store chain with a nationwide presence in Germany, Center Garden – gardening center, Fressnapf– pet store chain with a nationwide presence in Germany.
Lease period of main tenants	Tedox – At the time of acquisition, the lease agreement was until March 2020, and has since been extended to March 2025. Multipolster – At the time of acquisition, the lease agreement was until April 2025, and has since been extended to April 2030. Center Garden – At the time of acquisition, the lease agreement was until February 2025. Fressnapf – At the time of acquisition, the lease agreement was until June 2025, and has since been extended to June 2031.
Annual rent income	€1 million
Property value according an appraisal of June 30, 2020	€15.68 million
Company’s share in the property	50%

Remscheid
Acquired in	February 2012
Total GLA	3,055 sqm of commercial space, with an underground car park and parking areas in front of the building. In early 2021, an additional ~300 sqm were built.
Occupancy rate	100%
Main tenants	Penny – a supermarket, Rossman – a drugstore chain, Takko – a fashion store
Lease period of main tenants	Penny – At the time of acquisition, until January 2019, and has since been extended to January 2033. Rossman – At the time of acquisition until January 2019, and has since been extended to June 2030. Takko – At the time of acquisition until February 2024, and has since been extended to February 2036. All of the tenants have an option to extend their leases for an additional period.
Annual rent income	At the time of the acquisition the annual revenues were ~€413 thousand, and have since increased to ~€468 thousand (net of VAT and reimbursement of expenses).
Property value according to an appraisal of June 30, 2020	€7.8 million
Company’s share in the property	94%

Erfurt
מועד רכישה	1.2017
סה”כ מ”ר להשכרה	12,053 מ”ר
שיעור תפוסה	100%
שוכרים עיקריים	Tedox -רשת למכירת כלי בית וטקסטיל, Multipolster – רשת ריהוט הפרוסה בגרמניה, Center Garden – מרכז לגן. Fressnapf – רשת לבעלי חיים הפרוסה בגרמניה.
תקופת שכירות שוכרים עיקריים	Tedox – בעת הרכישה הסכם השכירות היה עד 3.2020 ומאז הוארך עד 3.2025. Multiploster – בעת הרכישה הסכם השכירות היה עד 4.2025 והוארך עד 4.2030. Center Garden – בעת הרכישה הסכם השכירות היה עד 2.2025. Freesnapf – בעת הרכישה הסכם השכירות היה עד 6.2025 ומאז הוארך עד ל-6.2031.
הכנסות שנתיות משכירות	1 מיליון אירו
שווי הנכס בהתאם לשמאות מיום 30.06.2020	15.68 מיליון אירו
חלק החברה בנכס	50%

Commercial centers – Germany

Summary real estate data – Germany

Data in ILS in thousands, relating to the property as a whole (100%), and are correct as of December 31, 2020

Sample properties

Wurselen

Wurselen

Erfurt

Erfurt

Remscheid

Remscheid

Geographic location

As of September 30, 2020

Main tenants

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