Fishman Holdings subsidiary Industrial Buildings Corp. (TASE: IBLD) has sold its Kipling residential project in Toronto for C$45 million (NIS 163 million), and will report a C$2 million loss on the sale. The company did not mention the name of the buyer.
Industrial Building books the 65,000-square meter 729-unit project at a value of C$46.9 million (NIS 170 million), and it carries a C$36.4 million (NIS 132 million) loan, which is partly secured by C$8.25 million guarantee to an Israeli bank.
Closing the deal is subject to due diligence. If the deal is closed, Industrial Building expects to report a net cash flow, after cancelling the bank guarantee and sales costs, of C$17 million (NIS 62 million) on the sale.
In a separate deal, Industrial Building joined its sister company, Darban Investments Ltd. (TASE: DRBN) in buying in equal shares the full $41.2 million mortgage rights to a residential project in the Tribeca neighborhood of Manhattan for $21 million. The property is zoned for a 10,000-square meter, 18-storey building with 84 apartments. Industrial Building and Darban will invest an additional $50 million in completing the project. Darban first announced the deal in November.
Fishman Holdings' subsidiary Jerusalem Economy Ltd. (TASE:ECJM) (JEC) owns 71% of Industrial Building and 57.8% of Darban. Industrial Building also owns 28.1% of Darban. Industrial Building's share price rose 0.1% in morning trading to NIS 7.70, giving a market cap of NIS 2.35 billion, and Darban's share price rose 1.9% to NIS 25.79, giving a market cap of NIS 1.23 billion.
Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes-online.com - on December 12, 2010
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