Delek Real Estate Ltd. (TASE: DLKR, controlled by Yitzhak Tshuva, is continuing the sell-off of properties. The company today announced that subsidiary Delek Global Real Estate plc, in which it owns an 85% stake, has sold Farrington Court in London, to undisclosed buyers.
Delek Global Real Estate owned 35.5% of Farrington Court, a 15,860-square meter office building located at 20 Farrington Road, in central London. The property was sold at a value of ₤69 million (NIS 398 million).
Delek Real Estate said that all the proceeds from the sale would be used to repay loans taken to buy the property, which the company books at a negligible value. The sale is due to be closed in July 2011.
In the past year, Delek Real Estate has sold properties for a total of NIS 1.5 billion, but the company is still in dire financial straits. It had a shareholders' equity deficit of NIS 1 billion and NIS 20 billion in liabilities at the end of June 2010.
Delek Real Estate's share price rose 1.3% in morning trading to NIS 1.51, giving a market cap of NIS 449 million.
Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2010
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