2011/07/04 Ektornet has successfully sold the development property 1220 South Figueroa Street in downtown Los Angeles, California, US

Recently, Ektornet successfully sold the property 1220 South Figueroa Street in downtown Los Angeles for a total sales price of 31 MUSD (~22 MEUR). The property is located across the street from Staples Arena and Nokia Theater, well known venues for sports and entertainment such as the Lakers and the Grammys.

The property was purchased by Ektornet in August 2009 for 18 MUSD (~12 MEUR). The property is a vacant lot in downtown Los Angeles, California of totally 11,048 sqm. The allowed current usage of the property is for 648 apartments and 2,323 sqm retail space.

The strategy since intake has been to maximize the value of the property through preservation and improvement of the building permits and zoning and to sell when the market had recovered from the recession.

During Ektornet's holding period, the property has been rented out to the parking company 'L&R Parking', generating a net yield of about 2.7%. The buyer of the property 'L&R Investment' is a sister company of the tenant.

In addition to the sales price of 31 MUSD Ektornet has also received a total amount of $100 000 in postponement fees from the buyer (1 month a $100,000). Net of transaction costs Ektornet's profit from the transaction amounts to about 12.5 MUSD before income taxes.