Delek Real Estate Ltd. (TASE: DLKR) has sold its stakes in gas stations and land as the company pursues CEO Eran Meital's strategy to refocus the company on core business. Wholly-owned subsidiary Delek Real Estate Income Producing Properties Ltd. sold its 50% stakes in three gas stations - Ein Yahav Delek Ltd., Delek-Saadon Projects Initiation and Development Ltd., Orhan Mei Megiddo Ltd. - as well as its 50% stake in Delek Retail Land Ltd. and a 3,884-square meter lot in Ra'anana to Delek Israel Fuel Corporation Ltd. (TASE: DLKIS) for NIS 42.5 million altogether.
Yitzhak Tshuva directly controls Delek Real Estate, and controls Delek Israel through Delek Group Ltd. (TASE: DLEKG).
Delek Israel already owns the other half of Delek Retail Land. Third parties own the remaining stakes in the Ein Yahav Delek, Delek-Saadon, and Orhan Mei Megiddo, and the sale of Delek Real Estate's holdings in them depends on the third parties not exercising their right of first refusal.
The breakdown of the sales is: Ein Yahav Delek - NIS 15.4 million, Delek-Saadon (which owns the Esther Cinema gas station in Ashkelon) - NIS 7.6 million, Orhan Mei Megiddo NIS 4.3 million, Delek Retail Land - NIS 6.2 million, and the Ra'anana lot - NIS 9 million.
Meital said, "Delek Real Estate will continue to implement our strategy of the past months to sell properties in Israel and abroad that are not part of our core businesses. The company will continue to own properties overseas through Delek Global Real Estate Ltd., and residential properties in Israel through Dankner Investments Ltd. "
Delek Real Estate's share fell 3% to NIS 3.83, and Delek Israel's share fell 1.6% to NIS 159.10.
Published by Globes [online], Israel business news - www.globes-online.com - on January 24, 2010
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