Nochi Dankner in London property talks

IDB unit Property and Building and Harel are in talks to jointly acquire land in London's financial district.

After earning NIS 2 billion in his short-term investment in Credit Suisse Group AG (NYSE: CS; SWX; CSGN; XETRA: CSGZ), Nochi Dankner has marked his next target: income-producing property in the UK. As first published in "Globes" IDB Holding Corp. (TASE:IDBH), controlled by Dankner, is examining an investment of hundreds of millions of shekels in UK real estate, which is currently in deep crisis.

IDB Holding unit Property and Building Corp. Ltd. (TASE:PTBL) and the Hamburger family's Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) are holding preliminary negotiations to become partners in the Broadgate project in London. The two Israeli companies are expected to jointly invest ₤145 million for a 50% stake in the property.

The project, currently owned by British Land (LSE: BLND), the UK's second largest property company by market value, has a registered asset value of ₤2.3 billion, and debt of ₤2 billion.

On the assumption that the deal goes through, Property & Building is expected to invest ₤100 million for 33% of the shares., while Harel will invest ₤45 million for a 16% stake, giving the two Israeli partners 49% with British Land retaining the balance. The Israeli partners will assume some of the debt.

The property which has attracted the attention of Dankner and the Hamburgers is an office complex located near Liverpool Street station in the City of London, the UK capital's financial district. The project includes 16 buildings covering 445,900 square meters and several months ago a 35-floor tower was completed with an investment of ₤240 million.

Published by Globes [online], Israel business news - www.globes-online.com - on June 18, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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