Optibase Ltd. Announces Settlement Of Dispute

Rhea-AI Summary

Optibase Ltd. (NASDAQ: OBAS) announced a settlement with its subsidiary Eldista GmbH regarding a dispute with tenant LEM INTERNATIONAL SA at the CTN Complex in Geneva. Eldista will pay LEM approximately $766,000 (CHF 700,000) to resolve the dispute and cease all legal proceedings. CEO Amir Philips expressed satisfaction with the resolution, highlighting the company’s focus on asset management moving forward. Optibase continues to seek real estate investment opportunities across various locations, including Switzerland and the USA.

Positive

• Settlement reached with LEM INTERNATIONAL SA, reducing potential litigation risks.
• Eldista will compensate LEM, allowing the company to move forward and focus on asset management.

Negative

• Optibase will incur a payment of approximately $766,000, impacting short-term cash flow.

HERZLIYA, Israel, Oct. 20, 2020 /PRNewswire/ -- Optibase Ltd. (NASDAQ: OBAS), or Optibase, today announced that its subsidiary, Eldista GmbH (of which the Company owns 51%) ("Eldista"), the owner of an office building in Geneva, Switzerland, known as Centre des Technologies Nouvelles ("CTN Complex") has reached an agreement with its tenant in the CTN Complex, LEM INTERNATIONAL SA ("LEM"), in a dispute between the parties. The parties agreed to cease all current and future legal proceedings in connection with the aforesaid dispute and that Eldista will compensate LEM its alleged damages in a total amount of CHF 700,000 (approximately U.S. $766,000). For additional information regarding the dispute, see Item 8.A. in the Company's 2019 annual report on Form 20-F published on April 1, 2020.

Commenting on the settlement, CEO of Optibase, Amir Philips, said, "We are pleased to have reached this agreement which will allow us to put this dispute behind us and continue focusing on quality management of our assets".

About Optibase

Optibase invests in the fixed-income real estate field and currently holds properties and beneficial interest in real-estate assets and projects in Switzerland, Germany, Texas, Philadelphia, PA, Miami, FL, and in Chicago, IL, USA and is currently looking for additional real estate investment opportunities. Optibase was previously engaged in the field of digital video technologies until the sale of its video solutions business to Optibase Technologies Ltd., a wholly owned subsidiary of VITEC Multimedia in July 2010. For further information, please visit www.optibase-holdings.com.

Media Contacts:
Amir Philips, CEO, Optibase Ltd.
011-972-73-7073-700
info@optibase-holdings.com  

Investor Relations Contact:
Marybeth Csaby, for Optibase
+1-917-664-3055
Marybeth.Csaby@gmail.com

 

 

View original content:http://www.prnewswire.com/news-releases/optibase-ltd-announces-settlement-of-dispute-301155870.html

SOURCE Optibase Ltd.

FAQ

What was the settlement amount in the Optibase dispute with LEM?

Optibase's subsidiary Eldista GmbH will pay LEM approximately $766,000 (CHF 700,000) to settle the dispute.

What is the significance of the settlement for Optibase shareholders?

The settlement allows Optibase to eliminate ongoing litigation risks, focusing on asset management and potential growth.

When was the settlement announced by Optibase?

The settlement was announced on October 20, 2020.

What is the stock symbol for Optibase?

The stock symbol for Optibase is OBAS.