Such a move could bring the bank a potential profit of hundreds of millions of shekels.
Bank Leumi (TASE: LUMI) may join Mizrahi Tefahot Bank (TASE:MZTF), and the Shufersal Ltd. (TASE:SAE) and Blue Square supermarket chains by adding huge value through spinning off the real estate assets it owns, which are worth billions of shekels. Sources inform "Globes" that Leumi is mulling the move of spinning off the real estate on a sell and leaseback basis.
As part of such a measure, the bank would sell all its real estate, or part of it, to institutions (possibly a REIT fund) and then leaseback the properties. The move is being internally examined and has yet to be approved by CEO Russak-Aminoach. Bank Leumi confirmed that the "subject is undergoing preliminary investigation."
In Bank Leumi's financial report for the third quarter of 2012 the value of its real estate buildings and equipment was booked at NIS 3.75 billion. If the bank does indeed promote the plan to fruition and sell the assets, there would be a potential profit of hundreds of millions of shekels, and even more, market sources believe.