Industrial Buildings, of the Fishman group, has signed a binding memorandum of understanding for the sale of its remaining rights (32%) in a project in Thailand for NIS 240 million ($69 million). NIS 35 million will be paid in September 2014 and the remainder in March 2015.
Industrial Buildings expects to record a gross profit (before selling expenses and tax) of NIS 125 million in the first quarter of 2015.
In 2008, the company bought 50% of the MahaNakhon project in Bangkok. The project is situated in the heart of Bangkok's business and financial district. It consists of 136,000 square meters of space. In the center of the project a 77-floor skyscraper is being built, which will be the tallest building in Bangkok, and will contain 200 luxury apartments and a 150-romm hotel.
The project also contains a commercial center, stores and public space. The Marriott International chain will manage the hotel under the "Edition" brand and the apartments under the "Ritz Carlton" brand.
In August, Industrial Buildings announced the sale of 18% of the asset to its local partner for NIS 126 million, a deal that gave the company free cash flow of NIS 115 million.
Eliezer Fishman is the controlling shareholder in "Globes".
Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2013
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