Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) yesterday sold its 46% holding in income-producing real estate company Vitania Ltd. (TASE:VTNA.B1) for NIS 164 million. Delek Real Estate books the holding at NIS 170 million.
Delek Real Estate will use the proceeds to repay its NIS 80 million debt to Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5), which Tshuva controls through Delek Group Ltd. (TASE: DLEKG). The company will use the rest of the proceeds to repay bank debts.
Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) and Flying Cargo Ltd. bought 40% of Vitania in equal shares for NIS 71 million each. Other Vitania shareholders bought the other 6%.
Vitania owns 90,000 square meters of properties in Israel and abroad and has building rights for an additional 136,000 square meters. Its shareholders equity at the end of September was NIS 336 million, and it posted a NIS 12 million loss in January-September.
Since July, Delek Real Estate has sold properties in Israel and Europe for NIS 1.6 billion altogether. Sales include properties in Switzerland, Germany, and the UK, as well as UK motorway services company Roadchef Ltd. (sold to Delek Group), and earlier this week, the sale of half of the Bezalel Market project in Tel Aviv.
Published by Globes [online], Israel business news - www.globes-online.com - on December 27, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010