Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

BATM banks profit on sale and leaseback of building in Israel

Following the sale, BATM will lease back 2,027 square metres of space to accommodate its business functions currently located in this building
The building houses R&D and operational functions of BATM

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.

READ: BATM establishes teleco partnerships for network virtualisation market estimated at US$200mln

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.

WATCH: BATM Advanced Communications subsidiary & NEXCOM introduce new uCPE solutions

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 --

View full BVC profile View Profile

BATM Advanced Communications Ltd Timeline

Related Articles

August 19 2018
BATM's Networks & Cyber division returned to growth in 2017

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use