An Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) unit in the US has completed an investment of about $116 million in Australian real estate investment trust MDT (Macquarie DDR Trust). The trust will be renamed EDT Retail Trust (ASX: EDT).
The investment is through EPN, a real estate investment venture jointly formed by Elbit Plaza USA, LP ("Elbit Plaza USA") and Eastgate Property LLC ("Eastgate"). Elbit Plaza is a joint venture of Elbit Imaging and subsidiary Plaza Centers NV (LSE:PLAZWSE:WLZ).
Following completion of the transaction, expected on June 18, 2010, EPN will own about 48% of the trust and be its largest unitholder.
MDT holds interests in 78 operating retail properties, valued at about $1.5 billion as of December 31, 2009. The portfolio comprises approximately 460 tenants and 13.2 million square feet (1.2 million square meters) of leasable area of mainly community shopping centers and single box retail properties across 23 states in the US.
EPN is in the process of raising a $400 million real estate investment fund, with Elbit Plaza USA and Eastgate committed to investing $200 million of the equity in the fund. The fund will be focused on the US retail and commercial real estate sectors.
Published by Globes [online], Israel business news - www.globes-online.com - on June 16, 2010
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