Tshuva, Gabay sell US real estate co for $1.85b

Yitzhak Tshuva Photo: Tamar Matsafi

Star, in which Yitzhak Tshuva and Yakir Gabay own equal shares, is active in income-producing residential real estate in the southern US.

Yitzhak Tshuva, who controls Delek Group, and Yakir Gabay are selling privately-held company Star, which they own in equal shares, for $1.85 billion. The deal for the sale of the company to US investors was signed a few days ago, and is expected to close within the next few months.

Star is active in residential income-producing real estate in the southern US. It has a portfolio of some 14,000 housing units. As far as is known, the company has debt amounting to $1.3-1.4 billion, so that once the deal is completed Tshuva and Gabay will be left with cash proceeds of about $250 million each.

Tshuva operates in income-producing real estate in North America chiefly through Elad Group and Elad Canada. He introduced Gabay as a partner in Star three years ago in exchange for an investment of $150 million. Gabay will post a profit of some $100 million from the sale of the company, while Tshuva's profit will be greater.

Published by Globes, Israel business news - en.globes.co.il - on September 10, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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Yitzhak Tshuva Photo: Tamar Matsafi
Yitzhak Tshuva Photo: Tamar Matsafi
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