Avi Levy continues expansion: 8 new properties acquired for tens of millions
Lahav LR, controlled by businessman Avi Levy, has signed an agreement to acquire 8 commercial properties in Germany. The assets are fully leased to a leading retail chain, with the deal reflecting a yield of approximately 7.75%.
Lahav LR, controlled by businessman Avi Levy, continues to expand its footprint in the neighborhood shopping center sector in Germany. The company has reported the signing of a binding agreement to acquire 8 additional properties serving local population needs.
Following this acquisition, Lahav LR will own 136 neighborhood shopping centers in Germany. The acquired assets are located across various German cities on land plots totaling approximately 92 dunams. The 8 centers comprise a total area of 31,309 square meters and offer significant development potential.
The properties are fully leased to the leading retail chain "JAWELL," a reliable tenant operating in a broad discount format. The long-term lease agreement runs until May 31, 2037, with no exit option and renewal options extending until May 31, 2047. The annual rent for the portfolio is approximately 1.68 million euros, with the majority linked to the German Consumer Price Index.
The acquisition price is 21.66 million euros, reflecting a deal yield (CAP) of approximately 7.75% (excluding additional space). The Cash-on-Cash (C.O.C) yield is expected to be approximately 12.51%. Average rent stands at approximately 4.47 euros per square meter per month, with most maintenance and operational expenses borne by the tenant. The properties offer potential for an additional 15,000 square meters of construction.
Founded in 1987, "JAWELL" operates approximately 100 branches across Germany, offering a diverse range of products including food, household goods, pharmacy items, and seasonal products. "JAWELL" is a long-standing partner of Lahav LR, already leasing three other commercial centers within the company's portfolio.
The acquisition will be financed by local banks through a 20-year non-recourse loan totaling 13.352 million euros at a nominal annual non-linked interest rate of approximately 3.9%. Upon completion, total equity investment will amount to approximately 10.75 million euros. Furthermore, the company has secured exclusive rights to acquire 3 additional shopping centers currently leased to "JAWELL."
