The company’s disposable cash flow on the sale is C$32 million.
Real estate firm Industrial Building Corporation Ltd. (TASE:IBLD), controlled by Eliezer Fishman’s Jerusalem Economy Ltd. (TASE: ECJM) (JEC)with a 78% share, reported today to the Tel Aviv Stock Exchange that its fully-owned subsidiary had contracted an agreement to sell all its leasing rights in the Chalkfarm rental apartment complex in Toronto for C$ 60 million (NIS 191 million). The buyer deposited C$800,000 in a trusteeship for the deal, which will be deducted from the amount to be paid by the buyer when the deal goes through.
Industrial Buildings, headed by CEO David Zvida, said it did not expect to post a profit or a loss on the sale, and that its pre-tax disposable cash flow on the sale would be C$32 million (about NIS 100 million). Zavida said, “This measure is a direct result of the Industrial Buildings group’s strategy of focusing on activity in Israel and a number of other core countries, while selling off its existing properties in other countries.” He added, “The sale is contributing to the company’s cash flow, thereby enabling us to continue expanding our activity and cutting our debt.” The property sold in Canada included 1,214 rental apartments, and the deal is expected to go through this October. The buyer notified Industrial Buildings in the past few days that it was waiving the prior conditions for the deal.
Eliezer Fishman is the controlling shareholder in “Globes."
Published by Globes [online], Israel business news - www.globes-online.com - on August 17, 2014
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