Jerusalem Economy Ltd. (TASE:ECJM) (JEC), controlled by Eliezer Fishman, today reported that it had signed a contract for the sale of its Woodbine Mall property in Canada for C$120 million (NIS 403,000).
C$500,000 of the proceeds will be deposited in a trust fund for three days following the signing, after which the purchaser will announced the completion of due diligence. The deposit will then be transferred, and an additional C$3.5 million will be deposited. Completion of the deal is slated for the third quarter of this year.
The property is valued at NIS 396 million in Jerusalem Economy's books, so the company's profit on the sale, if completed, will be insignificant.
The company explained that the proceeds would be used to pay off a loan secured by a lien on the property, and the available cash flow for the company on the sale (before sale expenses and taxes) is expected to amount to a gross NIS 208 million.
Eliezer Fishman is the controlling shareholder in "Globes."
Published by Globes [online], Israel business news - www.globes-online.com - on March 24, 2015
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