The sell-off by Yitzhak Tshuva continues. Alongside the improvement in the financial position of Delek Group Ltd. (TASE: DLEKG), which he controls (its current market cap is about NIS 2.7 billion), last week Tshuva and real estate and hotels tycoon Yakir Gabay completed the deal for the sale of their jointly owned US residential property company Star for $1.75 billion. The purchasers are Morgan Properties and Olayan America.
The joint venture consists of 48 rental properties containing a total of 14,414 housing units in eleven states in the south-east of the US, mainly Florida. The sale represents a substantial proportion of the assets of Elad Group, through which Tshuva conducts his privately-held real estate business overseas.
The proceeds of the deal will primarily be used to pay off debt. Elad Group is also working to complete the sale of another subsidiary, Elad Canada, for some CA$509 million (about $406 million).
The two deals will enable Elad Group to pay off its entire NIS 577 million debt to its bondholders in Israel.
Published by Globes, Israel business news - en.globes.co.il - on February 28, 2021
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