Metis Capital Ltd.
Metis Capital Ltd.: Closing of Purchase of Hotel in Vienna
Metis Capital Ltd. / Contract Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. ---------------------------------------------------------------------- Tel Aviv/ Israel; November 10, 2008 – Metis Capital Ltd. (Prime Standard: EIC; TASE: MTSC) announces, that a company under the full control of Metis Capital Ltd., METIS AUSTRIA Immobilien-und Beteiligungsgesellschaft mbH, completed on November 7th, 2008 the purchase of the hotel in Vienna on LANDSTRASSER HAUPTST., and this after all the payments had been transferred to the seller pursuant to the purchase agreement, with the exception of 150 thousand Euros that are held in trust with a view to ensuring the seller's liability for the construction work. The seller is entitled to furnish a bank guarantee, as well as to receive the above-mentioned amount from the trustee. Metis Austria signed a tenancy agreement with a company from the HOTUSA Group, for the purpose of operating the Hotel for a period of 15 years, whereby the lessee shall have a one-time right to terminate the agreement upon the termination of the seventh year, and this by 9-month advance notice. Metis Austria is entitled to a permanent rent in the amount of 536 thousand Euros per year plus VAT. To the permanent rent shall be added linkage to the consumer price index. Additionally, the Lessee shall pay Metis Austria 25% of the operating profit of the Hotel, as defined in the tenancy agreement for each of the years of tenancy. Notwithstanding the foregoing, this Additional Rent for the years 2008 and 2009 shall be calculated in such manner that, in case the Lessee should incur an operational loss in the year 2009, The Lessee shall be entitled to offset it against up to 50% of the operational profit for the year 2008. Payment of the additional rent for the years 2008 and 2009 combined shall be effected by March 31st, 2010, whereas the Additional Rent on account of the year 2010 and the years following it shall be paid to Metis Austria by the 31st day of March consecutive to each calendar year, respectively. Metis Capital Ltd. further announces, that on November 10th, 2008 the acquisition from a third party of 99.9% of the shares of a company by the name of WALLAGASSE 23, that owns a hotel in Vienna, was completed, and this through a company under full control of the company Amorazur Holdings Limited. The Acquired Company revoked the tenancy agreement between it and the company GOLDEN TULIP HOSPITALITY MANAGEMENT LTD., and this in accordance with the right granted to the Acquired Company pursuant to the tenancy agreement. According to the above-mentioned tenancy agreement, Golden Tulip undertook to evacuate the Hotel on February 28th, 2009. Metis Capital Ltd. is currently conducting negotiations with several entities with a view to putting in place an upgraded tenancy agreement on improved terms and conditions. The Company considers doing a renovation at the Hotel to the tune of up to 1.5 million Euros. Contact: Metis Capital Ltd. Ilan Engel, CFO Phone: +972-3-537 3000 E-mail: investor@metis-capital.com Janina Wismar Investor Relations Phone: +49-40-60918650 E-mail: janina.wismar@kirchhoff.de 10.11.2008 Financial News transmitted by DGAP ---------------------------------------------------------------------- Language: English Issuer: Metis Capital Ltd. 30 Hamasger Street 61090 Tel-Aviv Israel Phone: +972 (03) 537-3000 Fax: +972 (03) 537-4000 E-mail: investor@metis-capital.com Internet: www.metis-capital.com ISIN: IL0003570129 WKN: 936734 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Stuttgart, München, Hamburg, Düsseldorf End of News DGAP News-Service ---------------------------------------------------------------------------
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