Sources inform ''Globes'' that Delek Group Ltd. (TASE: DLEKG) unit Delek Income Producing Real Estate Ltd. has put up for sale its 70% stake in the Haifa Mall at a company value of NIS 240-250 million. It has sent an offer to insurance and income-producing real estate companies.
Delek Real Estate Ltd. (TASE: DLKR) owns 80% of Delek Income Producing Real Estate, and Migdal Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) owns the other 20%. Summit Real Estate Holdings Ltd. (TASE: SMT) owns the other 30% in the Haifa Mall. Last year, Delek Income Producing Real Estate bought 20% of the Haifa Mall for NIS 52 million.
The Haifa Mall is located at the southern entrance to Haifa, near the confluence of Road 4 and Road 2 (the coastal highway), opposite the Matam High-Tech Park, the Israel Electric Corporation (IEC) (TASE: ELEC.B22) headquarters, Castra Mall, and Haifa Congress Center. The 92,000-square meter mall has 29,000 square meters of commercial space.
The Haifa Mall is not the only property that Delek Real Estate is tying to sell. "Globes" reported last week that the company sold the Herzl Building in Tel Aviv to Israel Discount Bank (TASE: DSCT), its main tenant, for NIS 42 million. In September, it signed a deal to sell three income-producing properties in Tel Aviv to Migdal for NIS 275 million. Delek Real Estate is trying to raise cash to repay loans to Merrill Lynch & Co. (NYSE: MER) taken to acquire UK motorway services chain RoadChef.
Delek Real Estate's share fell 5.8% today to NIS 4.70. Delek Group's share fell 3.5% to NIS 136.90.
Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008