Valuation halved for Dankner and Tshuva's Las Vegas Plaza

CRBE values the land at $652 million, compared with the 2007 purchase price of $1.24 billion.

CB Richard Ellis (CRBE) has valued the Las Vegas Strip lot on which Yitzhak Tshuva and Nochi Dankner are planning to build their $8 billion Plaza Casino and Hotel complex at $652 million, or $710 million excluding leasing rights payments for part of the lot. The valuation, based on the value in use method, is correct for the end of September 2008. Tshuva and Dankner paid $1.24 billion in 2007 for the lot through their joint venture for the project: Elad IDB Las Vegas LLC.

Discount Investment Corporation (TASE: DISI) and its subsidiary, Property and Building Ltd. (TASE: PTBL), said that the valuation would have no effect on their financial reports for the third quarter. The valuation is 47% of the purchase price.

Tshuva and Dankner own the project in equal shares: Dankner through IDB Holding Corp. Ltd. (TASE:IDBH) unit IDB Group USA Investments Inc. held equally by Discount Investment and its subsidiary Property and Building, and Tshuva through Elad Properties unit Elad Las Vegas LLC. The 1.5-million square meter Plaza Hotel and Casino will have 3,500 rooms, and a 500,000-square meter residential project.

Last month, IBI Investment House Ltd. said that the lot for the Plaza Las Vegas lot had lost 65% of its value. In contrast, an independent valuation by HVS Consulting & Valuation Services, based on the expected cash flow model, valued the land at $1.47-1.5 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on November 23, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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