BATM Advanced Communications Limited (LON:BVC) has entered into an agreement to sell a wholly-owned building situated at Yokneam, Israel for roughly US$9.7mln.
The building, which the networking solutions and medical laboratory systems provider has owned since it was constructed 17 years ago, housed R&D and operational functions of BATM as well as some third-party tenants.
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Following the sale, BATM will lease back 2,027 square metres of space to accommodate these business functions.
The building has been sold to take advantage of the increased value of property in Israel as well as to provide the group with flexibility to meets its evolving property requirements, BATM said.
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The sale price of 34mln new Israeli shekels compared with the building’s book value of 13.5mln new Israeli shekels.
In a note to clients, analysts at house broker Shore Capital said: “We expect to treat the profit on the sale of the building as an exceptional non-trading gain, adjusting our FY2018 forecasts for the small loss of rental income with additional lease costs to be incurred.”
In afternoon trading, BATM shares were almost 1.5%, or 0.38p higher at 26.00p.
-- Adds broker comment, share price --