Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) subsidiary Delek Global Real Estate Ltd. is in talks to sell a property in Montreal for C$290 million. Delek Real Estate CEO Eran Meital confirmed the report. The company books the Bell Tower at a C$230 million and carries a C$120 million debt on the property.
Delek Real Estate has been in severe financial trouble since late 2008, and has been selling assets ever since in order to repay its estimated NIS 20 billion debt, most of which is in the form of non-recourse loans to foreign banks. The company also owes its Israeli bondholders NIS 2 billion. It posted a loss of NIS 364 million in January-September 2010, after losing NIS 1.1 billion in 2009.
Delek Global Real Estate's Canadian portfolio is valued at about C$500 million. In November 2010, the company tried to sell its Canadian portfolio through Tshuva's son-in-law Rami Naor, who would have reportedly made a $1.6 million mediation fee.
The Bell Tower is a 28-storey 90,555-square meter office and commercial tower. Annual rent totals NIS 108 million. Delek Global Real Estate's three other Canadian properties are a community shopping center in Trois Rivieres, Quebec; an office building at 5001 Yonge Street in Toronto; and 45% of Jean Coutu Group Inc. (TSX: PJC), which owns shopping centers in Quebec and Ontario.
Published by Globes [online], Israel business news - www.globes-online.com - on March 27, 2011
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