Mishorim Development Ltd. (TASE:MSHR) today notified the TASE that it has bought the Le Meridien King Edward Hotel in downtown Toronto for C$52 million. The purchase was made through Skyline Executive Acquisitions Inc. a unit of Skyline International Development Inc.
Skyline deposited C$500,000 as a deposit with the signing of the contract, which will be returned if the deal is not closed.
The five-star 298-room King Edward Hotel was built in 1903, and was named for King Edward VII, Britain and Canada's monarch at the time. It was bought by Lehman Brothers UK unit in 2006 for C$62.5 million, and underwent extensive renovations at a cost of C$17 million. The hotel is operated by Starwood Hotel & resorts Worldwide (NYSE: HOT). Mishorim is considering keeping Starwood as the manager.
Mishorim CEO Rami Shriki said, "The acquisition of the King Edward Hotel is a rare opportunity for the company, because it is a property occupying an entire block in the heart of downtown Toronto, and has generated handsome revenue for its owners for years. The company will complete construction of its residential project near the hotel. The project has 500 condominiums in two high-rises, as well as commercial and parking space. The company will make some of the parking available to the hotel's guests and visitors."
Mishorim, controlled by chairman Gil Blutrich owns 67% of Skyline, while Israel Land Development Company (TASE: ILDC) owns 33%. Mishorim's share rose 0.6% in morning trading today to NIS 11, while Israel Land's share was unchanged at NIS 12.19.
Published by Globes [online], Israel business news - www.globes-online.com - on October 5, 2009
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