Yitzhak Tshuva agrees partial sale of Elad Canada Realty

Yithak Tshuva / Photo: Yossi Cohen

Elad Canada Realty is being sold to Rester Management of Canada for CA$508 million, but Elad Group will retain some of its assets.

Yitzhak Tshuva's privately-held real estate company Elad Group has agreed the sale of subsidiary Elad Canada Realty to Canadian company Rester Management. Rester Manamgement will pay CA$508 million (US$381 million), while certain assets, valued at CA$275 million (US$206 million), will be excluded from the deal and will be allocated to Elad Group. The deal thus values Elad Canada Realty at CA$783 million (US$587 million), which compares with shareholders' equity in its last financials, for the first quarter, of CA$605 million (US$454 million).

Elad Canada Realty, headed by Rafael (Rafi) Lazer, acquires and operates income producing real estate in the US and Canada. It also develops and sells residential property in Canada.

Acording to Elad Canada Realty, the acquiring company intends to continue employing its senior management, including Lazer. Lazer said that Elad Canada Realty had attracted considerable interest on the part of investors in the past few weeks.

Elad Group has debt of NIS 676 million (principal) to financial institutions holding its privately placed bonds, issued through two subsidiaries, SPC Elad and Elad Group US.. It also has two series of bonds traded on the Tel Aviv Stock Exchange amounting to NIS 763 million (principal), issued through a third subsidiary, Elad Canada.

In June this year, Elad Group approached the SPC Elad bondholders with an offer to provide them with collateral in exchange for their agreement to waive their right to present the debt owed to them for immediate repayment. The right arose after rating agency S&P Maalot downgraded the debt of Elad Group and its subsidiaries to below A-.

At the time, Elad Group also disclosed the possible sources for payment of its commitments to its bondholders, among them the sale of assets and/or holdings in subsidiaries such as Star and Elad Canada Realty.

Published by Globes, Israel business news - en.globes.co.il - on August 5, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Yithak Tshuva / Photo: Yossi Cohen
Yithak Tshuva / Photo: Yossi Cohen
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