The buyer is a Canadian businessman. Super-Sol rents the store in a 10-year lease, generating a 9.5% yield.
Liberty Properties has sold the Birkat Rachel supermarket at 234 Jaffa St., at the entrance to Jerusalem, to a Canadian investor for $4.8 million. The store has a gross area of 3,500 sq.m., including 2,500 sq.m. of income-producing space and 1,000 sq.m. of storerooms and machinery rooms. The buyer paid $1,370 per sq.m. of gross space and $1,920 per sq.m. of income-producing space.
Super Sol (NYSE: SAE
Liberty Properties, a subsidiary of Elco Holdings, owned the property for 30 years. Liberty Properties will use the proceeds from the sale for other investments.
In a separate deal, Liberty Properties bought a Montreal apartment bloc with 150 apartments for $4.2 million. Sources told “Globes” that there was no connection between the Israeli and Canadian deals, nor any relationship between the Canadian buyer of Birkat Rachel in Jerusalem and the Canadian seller of the Montreal apartment bloc, although a part of the proceeds of the Jerusalem sale might be financing the Montreal purchase. Both deals reflect Liberty Properties’ plan, like other real estate companies, to reduce their investments in Israel and expand them overseas.
Published by Globes [online] - www.globes.co.il - on January 12, 2003