Delek Real Estate unit sells Canada building

Delek Real Estate has been sold numerous properties in the past few months in order to meet its bond payments.

16 March 10 12:0, Adi Ben-Israel

Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva and run by CEO Eran Meital, is continuing its sell-off of properties to meeting its liabilities under its new strategy. Wholly-owned subsidiary Delek Global Real Estate plc (DGRE) has sold its 85% stake in a residential property, Place Elgin, in Montreal for C$47.5 million (NIS 172 million).

The figure is 3.6% higher than the value at which Delek Global Real Estate carries the property in its books - C$45.8 million at the end of September 2009. The company will use proceeds from the sale to repay the C$ 32 million (NIS 116 million) balance of the loan on the property, leaving it with a cash flow of NIS 56 million.

Delek Real Estate has been sold numerous properties in the past few months in order to meet its bond payments. The company plans to sell properties for several billion shekels, and focus on two core holdings: residential real estate in Israel through Dankner Investments Ltd. and foreign income-producing properties through Delek Global Real Estate.

Published by Globes [online], Israel business news - www.globes-online.com - on March 16, 2010

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