Delek Global Real Estate sold the Degi office building to its lender.
Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) sold its 60% rights to the Degi office building in Frankfurt Germany held through Delek Global Real Estate Ltd. at a value of €50 million (NIS 247 million) to the property's lender. Delek Global Real Estate owes the lender €110 million, and the lender will write off the balance of debt during the first quarter of 2012, fully settling it.
Delek Global Real Estate booked Degi at a value of €55 million at the end of September, and it will report a capital gain of €35 million from its share of the debt write-off.
Delek Real Estate Delek owns 85% of Global Real Estate, which still owns a number of properties in Germany, Switzerland, the UK, and Finland. It sold its last property in Canada last month.
Delek Real Estate's share price rose 1.4% in morning trading to NIS 0.22, giving a market cap of NIS 83 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 25, 2011
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