Delek Real Estate Ltd. (TASE: DLKR, controlled by Yitzhak Tshuva, has sold its 70% stake in the Haifa Mall Azrieli Group for NIS 211 million, as Delek Real Estate CEO Eran Meital continues his sell-off of assets in order to meet the company's commitments. "Globes" reported the planned deal earlier this month.
Delek Real Estate will use proceeds from the sale to repay its NIS 124 million loan taken to buy the mall, and it will remain with a cash flow surplus of NIS 87 million from the deal. The company said it does not expect to report any material capital gain on the sale.
Azrieli Group, owned by David Azrieli, also bought the 22.7% stake in the Haifa Mall owned by from Summit Real Estate Holdings Ltd. (TASE: SMT), Delek Real Estate's partner in the mall. Summit said that it will report a capital gain of NIS 3 million on its NIS 68 million share of the deal, after paying off the debt on the property.
Delek Real Estate's share rose 1% by mid-afternoon today to NIS 3.98, giving a market cap of NIS 736 million. Summit Real Estate's share rose 0.5% to NIS 6.09, giving a market cap of NIS 336 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 14, 2010
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