Skyline Investments Inc., a Canadian real estate joint venture of Mishorim Development Ltd. (TASE:MSHR) and Israel Land Development Company (TASE: ILDC) has sold the lot in Toronto zoned for the development of the Skyline Tower office and hotel project for C$39 million (NIS 140.4 million).
Skyline bought the 1,200-square meter lot in downtown Toronto for C$29.1 million (NIS 86.8 million) in January 2008. The lot was originally zoned for a 42,000-square meter building, which was later increased to 59,000 square meters.
Mishorim, controlled by chairman Gil Blutrich, owns 66.35% of Skyline, and Israel Land, controlled by chairman Ofer Nimrodi, controls the rest. Mishorim will not report a capital gain on the sale, as it books it the value similar to the sale price. Skyline, however, will report a surplus cash of C$26 million (NIS 93.6 million) on the sale, half of which will be used to repay the mortgage on the land.
Mishorim's share price fell 0.4% by mid-afternoon today to NIS 9.46, giving a market cap of NIS 228 million, and Israel Land's share price fell 3% to NIS 32.22, giving a market cap of NIS 920 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 1, 2011
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