Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, will lose a key asset: 127 parking garages in the UK leased to National Car Parks Ltd. Delek Real Estate failed to reach agreement with the lender banks, which have decided to foreclose on the properties, held through Delek Global Real Estate Ltd., which are collateral for loans.
The foreclosure is a personal blow to Tshuva, as Delek Real Estate will be delisted from the TASE next week, under the company's debt settlement with its bondholders, and he will assume full ownership of it. In retrospect, the bondholders were saved by reaching the debt settlement when they did, and handed responsibility for payments to Tshuva's private companies.
Delek Real Estate said in response, "Throughout, the company has sought every possible means to find a solution for National Car Parks, held by subsidiary Delek Global Real Estate, on the basis of the property's value, debt ratio, and expected income over the coming years. The company is examining the latest developments with regard to the property, and it will decide on its steps shortly. The company reserves all its rights in this matter, including its claims against the lenders' conduct."
Delek Real Estate posted a net profit of NIS 109 million for the second quarter, mainly due to a NIS 243 million revaluation on National Car Parks, which was valued at £797 million (NIS 4.9 billion), following a debt settlement.
The TASE has suspended trading in Delek Real Estate's share ahead of its delisting on Tuesday.
Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2012
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