Elbit Imaging sells stakes in 3 London hotels

Israeli partner Park Plaza bought the stakes.

Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) today sold its holdings in three London hotels for ₤21 million to its partner in them, Park Plaza Hotels Ltd. (AIM:PPH). The deal comes a day after it bought seven shopping centers in the US.

Elbit Imaging, controlled by chairman Mordechai Zisser owned 45% of the Park Plaza Riverbank Hotel and the Park Plaza Sherlock Holmes Hotel and 50% of the Park Plaza Victoria Hotel. Park Plaza, controlled by chairman Eli Papouchado, manages the hotels. Park Plaza will also assume Elbit Imaging's ₤11.9 million guarantees to Aareal Bank AG.

Elbit estimates the total asset value of the hotels at ₤230 million, and the company books their value at ₤166 million. Elbit Imaging will report a fourth quarter gain of NIS 185 million on the sale.

Elbit Imaging co-CEO Dudi Machluf said, "The continuous improvement in the hotels business in London provides us the opportunity to sale our holdings in the hotels in an attractive yield…This transaction is in line with our strategy to expand our US real estate sector and to divert significant resources to this area, which we believe will provide us better returns on our equity."

Elbit Imaging's share price rose 0.9% on Nasdaq yesterday to $12.65, giving a market cap of $322 million. The share price rose 0.6% in morning trading on the TASE today to NIS 46.18. Park Plaza's share price opened at ₤1.49 on London’s Alternative Investment Market (AIM), giving a market cap of ₤61 million.

Published by Globes [online], Israel business news - www.globes-online.com - on December 30, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018