End to the legal battle in the German real estate company: Court approves the settlement

The Tel Aviv Economic Court approved the settlement agreement between investors of MHR1, establishing a joint mechanism for realizing real estate assets in Germany worth approximately 100 million euros.

The Tel Aviv Economic Court approved the settlement agreement between investors of MHR1 Nihul Hashkaot Ltd., a company engaged in real estate in Germany. The agreement resolves the main disputes between the parties and establishes a joint mechanism for realizing real estate assets in Germany worth approximately 100 million euros. The background to the proceedings is a lawsuit by investors whom the company raised funds from for investment in German real estate, seeking a declaratory judgment regarding their ownership of shares in FM1, a company registered in the Netherlands. Under the agreement, a uniform operational model was set for management, valuation, reporting, and sale of assets. The investors' representative, attorney Avi V. Greenberg, will participate in decision-making. It was agreed that the company's rights in the concern will first be directed to the investors to complete their investment funds. The invested capital is estimated at about 40 million euros, and the total assets of the concern at about 100 million euros. The agreement applies only to the relations between the plaintiffs and the defendant and does not grant ownership of shares or proprietary rights.