Ofer Investments Ltd. unit Melisron Ltd. (TASE: MLSR) has sold the Hadar Mall in Jerusalem and Nahariya Mall to Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), a unit of Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH) for NIS 441 million. Melisron is selling the Hadar Mall for NIS 266 million and Nahariya Mall for NIS 175 million, reflecting a 7.7% return on investment.
The sale is part the Antitrust Authority's terms for approving Melisron's NIS 1.7 billion merger with British Israel in 2011. When Melisron also closes the sale of the Harel Mall in the Jerusalem suburb of Mevasseret Zion, the company will meet the Antitrust Authority's terms. In February 2013, Melisron signed agreement for the sale of the Raananim Mall in Ra'anana and the Savyonim Mall in Yehud for NIS 1 billion to a group of investors headed by Amir Biram.
Melisron also announced mixed results for the first quarter. Rental and other income rose 2% to NIS 336 million for the first quarter from NIS 330 million for the corresponding quarter. Net operating income (NOI) fell 2% to NIS 257 million, but funds from operations (FFO) rose 36% to NIS 110 million. NOI fell because of the sale of the IKEA Israel property in Netanya, while the increase in FFO was mainly due to the acquisition of the minority shares in British Israel and the buying out of Melisron's partner in Haifa's Grand Canyon mall in Haifa, Gad Zeevi.
Net profit fell 19% to NIS 92 million for the first quarter from NIS 110 million for the corresponding quarter, because of a NIS 20 million downward fair value valuation on investment properties in the first quarter, compared with a NIS 62 million upward revaluation in the corresponding quarter.
Melisron owned 23 malls in Israel, before the sale of the Hadar, Harel, and Nahariya malls, compared with 13 malls owned by Azrieli Group Ltd. (TASE: AZRG).
Melisron will distribute a dividend of NIS 150 million this year, including NIS 37.5 million on June 23.
Published by Globes [online], Israel business news - www.globes-online.com - on May 29, 2013
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