Elad Group Canada Inc. (TASE: ELCN), controlled by Yitzhak Tshuva, today announced the closing of the sale of the Montreal Olympic Village for C$176.5 million (NIS 687.4 million). The Olympic Village has 980 apartments and office and commercial space. Elad Canada will report a cash flow surplus of C$94.2 million (NIS 367 million) on the sale, and a net profit of C$1 million (NIS 3.9 million). As part of the deal, Elad Canada will transfer a C$82 million loan on the property to the buyer.
Following the sale, Elad Canada's properties include Cité Nature, a condominium project under development in Montreal adjacent to the Olympic Village. The project includes 1,150 condominiums in eight buildings.
The sale of the Montreal Olympic Village follows Elad Canada's sale in September of most of the Parkway Forest residential project in greater Toronto for NIS 1.12 billion (C$281 million), which generated a cash flow surplus of NIS 600 million (C$150 million) and pretax profit of NIS 80 million. Elad Canada will report a cash flow surplus of almost NIS 1 billion on the two sales.
Elad Canada chairman Udi Erez said, "In the last two deals, Elad Canada succeeded in exploiting excellent business opportunities to sell properties at attractive prices, strengthening its liquidity and financial soundness. The company will use the cash flow surplus from the two deals to expand its operations in North America by making quality high-yield strategic investments.
Elad Canada CEO Shay Braverman said, "In the past few months, Elad Canada has sold two properties, which generated a cash flow surplus of almost NIS 1 billion. With our current liquidity situation, we are continuing to seek additional attractive deals in North America, while simultaneously developing the company's projects in Canada."
Published by Globes [online], Israel business news - www.globes-online.com - on November 4, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012