Liberty Properties (TASE:LBRT) (formerly Shekem Real Estate) plans to renovate all its properties in Israel, in order to sell them and invest the proceeds overseas real estate, Liberty Properties CEO Boaz Kamer and owners' representative Daniel Salkind told "Globes" today. Liberty Properties is a subsidiary of Elco Holdings (TASE:ELCO), controlled by the Salkind family.
In the first stage, Liberty Properties has opened negotiations to sell the new 6,000-sq.m. commercial center recently dedicated on three floors in the Century Tower at 124 Ibn Gvirol St., Tel Aviv, for $10 million. Later, Liberty Properties will open negotiations to sell other properties.
Liberty Properties owns properties across Israel, with a total income-producing space of 40,000 sq.m. The main properties are a 4,000-sq.m. commercial center in part of the Bat Yam Mall; a 5,000-sq.m. commercial and office project in Beer Sheva, now under construction; 3,000 sq.m. in Netanya; 4,000 sq.m. in the Nevi'im Tower in Haifa, which are not leased; 1,500 sq.m. of industrial space in Emek Sarah, outside of Beer Sheva; and a number of smaller properties.
It is estimated that Liberty Properties will be able to receive $30-40 million for all its properties, including a 3.25-dunam (0.8125-acre) plot on Ibn Gvirol St., Tel Aviv.
Liberty Properties invested $55 million in the past year to buy income-producing properties in Montreal and Prague. The company also bought three residential buildings with 400 rental apartments in Montreal from Canadian investors for $15 million.
German banks financed 75-80% of the Montreal and Prague deals. On the basis of this leverage, $30 million in proceeds from the sale of the Israeli properties means that Liberty Properties will be able to buy $150 million worth of properties.
Liberty Properties plans to buy more properties in Canada, and is examining properties in the US and other countries.
Published by Globes [online] - www.globes.co.il - on December 30, 2003