Yitzhak Tshuva is continuing his sell-off of properties held by Elad Group Canada Inc. (TASE: ELCN). The company has sold residential buildings in Montreal's Olympic Village for a gross C$177.5 million (NIS 710 million) and two assisted living facilities for C$29.9 million (NIS 117 million).
The Olympic Village, which originally housed athletes for the 1976 Games, has 980 rental apartments and 200,000 square feet of commercial and retail space. Elad Canada will report a cash flow of $9 million (NIS 360 million) on the sale, after repaying the C$82 million (NIS 328 million) loan on the property. The company will break even on the sale, as the sale price is close to the property's fair value on the books.
Elad Canada also sold two assisted living facilities, the Pavillon des Cèdres for C$8.1 million (NIS 32.4 million), and the Domaine La Fontaine for C$21.1 million (NIS 84.4 million). The company expects to report a cash flow of NIS 26.4 million and a net profit of NIS 3.6 million on the sales.
Last month, Elad Canada sold the 1,067-unit Parkway Forest residential complex in Toronto for NIS 1.06 billion, on which it expects to report cash flow of NIS 566 million and a pretax profit of NIS 87 million. Following the sales, the company's properties include Cité Nature, a complex of eight buildings with 1,150 apartments, and other properties in Montreal and elsewhere in Quebec.
Elad Canada is part of Elad Properties. Its share price opened at NIS 10.51 today, giving a market cap of NIS 1.2 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on July 26, 2012
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