The company plans to build an office building in Tel Aviv and bought a residential and commercial complex in Haifa.
Delek Real Estate Ltd. (TASE: DLKR) has made two land purchases, one in Tel Aviv and the other in Haifa.
In Tel Aviv, Delek Real Estate subsidiary Vitania Ltd. (of which it owns 50%) and the subsidiary of sister company Delek Automotive Systems Ltd. (TASE: DLEA), DMR Properties (1995) Ltd., bought a five dunam (1.25-acre) lot on Hamasger Street in Tel Aviv for NIS 64 million. Vitania and DMR will own the lot in equal shares. The lot is zoned for an 18,000-square meter gross space office building. The companies plan to demolish the buildings occupying the site and build the office building. Delek Auto's board has authorized DMR to extend to Vitania a NIS 32 million five-year loan at Prime + 1% interest to buy its share of the lot.
In Haifa, Delek Real Estate bought out its partners in two companies that own land and properties in Haifa for NIS 32 million and take over the companies' NIS 397 million bank debt owed to Bank Leumi (TASE: LUMI). The two companies are Hof Hacarmel and Tourism 89 Ltd. and Hof Hacarmel 88 Ltd. in which Delek Real Estate previously 17.34%. The companies own the Meridian Hotel Haifa, a 30-dunam (7.5-acre) lot with 64,000 square meters in net building rights, two residential buildings with 474 apartments, commercial space, an events hall, sports centers, and a spa. 330 apartments in the complex have already been sold.
Published by Globes [online], Israel business news - www.globes-online.com - on February 3, 2008
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