Electra Real Estate Ltd. (TASE:ELCRE) is continuing its selloff of properties to meet its liabilities. The company, the weak link in the subsidiaries of Elco Holdings Ltd. (TASE: ELCO), controlled by Georg Salkind, has signed an agreement to sell its 90% rights in two Canadian office buildings at a value of C$50 million (NIS 168 million). The company's share of the deal is NIS 152 million, on which it will report free cash flow of C$23 million NIS 78 million) and a net profit of NIS 3 million.
The sale of the two office buildings, which have a total area of 26,900 square meters, will complete the selloff of Electra Real Estate's Canadian portfolio, which it announced last June, because of the company's financial condition. In the past few weeks, the company has signed agreements for the sale of four properties in Canada for C$115 million (NIS 390 million).
Total sale proceeds will be NIS 626 million, of which Electra Real Estate's share will be NIS 563 million, on which it will report free cash flow of NIS 180 million.
In addition, in October, Electra Real Estate's board of directors approved a NIS 100 million private placement of shares, half of which will go to Elco. The company's bond debt totals NIS 400 million and the yield is 5.5%, down from double-digit yields six months ago. The company reported NIS 72 million in cash and deposits at the end of June, against NIS 953 million in current liabilities, mostly short-term credit.
Published by Globes [online], Israel business news - www.globes-online.com - on November 14, 2013
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