Jelmoli sought enforcement of the acquisition of its properties for CHF 3.4 billion.
Delek Group Ltd. (TASE: DLEKG) real estate subsidiary Delek Real Estate Ltd. (TASE: DLKR), and Blenheim Properties Ltd., owned by Igal Ahouvi, have settled their dispute with Swiss real estate group Jelmoli Holding AG (SWX: JEL). Delek Global Real Estate Ltd. (AIM: DGRE) and Blenheim Properties will pay Jelmoli CHF 21.5 million, as a settlement of the arbitration proceedings the two sides commenced in Switzerland a few months ago. The sum to be paid will be divided equally between Delek Global Real Estate's subsidiaries and Blenheim Properties.
As previously reported, Jelmoli initiated legal proceedings to seek an enforcement of the acquisition by Delek Global and Blenheim of its 88 properties for CHF 3.4 billion, or CHF 275 million in compensation for the cancellation of the deal.
Today's settlement brings to a close the legal dispute which began in October 2007 when Delek Global Real Estate and Blenheim decided to pull out of the deal to acquire Jelmoli's portfolio.
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2008
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