The company wants to focus on its Obuda Dream Island recreation project in the city.
Elbit Medical Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) has sold half of a Hungarian subsidiary, Andrassy 25 Kft., which owns the Ballet Institute Building in downtown Budapest, for €15 million. The property is considered a preserved monument.
Elbit Medical will report a pretax capital gain of NIS 60-65 million ($14.3-15.5 million) in the second quarter of 2007.
Elbit Medical president Shimon Yizhaki said, “The hotel and tourist business in Budapest are at a pick these days. We have decided to grasp the opportunity and execute the sale of the landmark building located at Andrassy 25 St., Budapest, in order for us to concentrate the company’s hotel division efforts in Budapest to promote the "Obuda Dream Island" project".
The Obuda Dream Island project is a €1.5 billion tourism project on Obuda Island in the Danube River in Budapest. Elbit Medical Imaging indirectly owns 30% of Dream Island 2004 Real Property Development Ltd. Plaza Centers NV (LSE:PLAZ).
Published by Globes [online], Israel business news - www.globes.co.il - on June 13, 2007
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