Real estate company Elad Canada, controlled by Yitzhak Tshuva, today announced a large-scale deal to acquire full ownership of Agellan, a Canadian REIT, for $297 million.
Elad Canada signed an agreement to acquire the fund's shares at just of $14 per share, 5% higher than the share price on the Toronto Stock Exchange.
Elad Canada currently owns 19% of the shares in Agellan. When the deal is completed, Elad Canada will benefit from an C$18 million net free cash flow (FCF). Agellan has a portfolio of US income producing properties worth C$700 million and C$52 million in net operating income (NOI). Elad Canada plans to refinance Agellan's properties, most of which are used for industry, with the rest being office buildings.
Elad Canada, which manages, maintains, and develops real estate in central Canada, mainly in Toronto and Montreal, is part of the Elad Group. The group works for Tshuva, the controlling shareholder in energy and holding company Delek Group Ltd. (TASE: DLEKG), in North America in a range of activities. Elad Canada joined the TASE last summer with a NIS 260 bond issue, currently traded at a yield of nearly 4%.
Before the bond issue, Elad announced that part of the proceeds were designated for increasing its holdings in Agellan, in addition to upgrading its existing portfolio and rescheduling debt.
Published by Globes, Israel business news - en.globes.co.il - on November 14, 2018
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