Elad Canada exits Toronto project for NIS 1.06b

The Yitzhak Tshuva-controlled company will report a pretax gain of NIS 87 million.

10 June 12 10:23, Koby Yeshayahou

Elad Group Canada Inc. (TASE: ELCN), controlled by Yitzhak Tshuva, today notified the TASE that it has sold its rights to the Parkway Forest residential project in greater Toronto for a gross C$282.5 million (NIS 1.06 billion). The project includes 1,670 condominiums. Elad expects a net cash flow of C$150 million (NIS 566 million) and a pretax profit of NIS 87 million on the sale.

Elad Canada added that it will retain the adjacent Emerald City project, which has 2,500 condominiums in the Toronto suburb of North York.

The sale of the Parkway Forest project is subject to the usual conditions of a transaction of this kind.

Elad Canada CEO Shay Braverman said, "The present deal again highlights the soundness of the Canadian market, which continues to enjoy gradual growth and rising demand. In this deal, we demonstrated our ability to exploit excellent business opportunities for the sale of properties, and create cash flow and substantial profits for the company, which will use them to expand its operations."

Elad Canada chairman Udi Erez said, "The Canadian residential rental market is currently characterized by heavy demand, due to the soundness of the Canadian economy and the country's longstanding policy of favoring immigration. Elad Canada has been able to exploit the growing demand to sell its rights in the Canadian project at a good price, thereby strengthening the company's liquidity and financial soundness. This deal highlights the quality of the company's properties portfolio and the contribution to its investment strategy."

Elad Canada's share price rose 3.2% in early trading today to NIS 10.25, giving a market cap of NIS 1.1 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on June 10, 2012

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