Less than a week after Standard & Poor's Maalot Ltd. cut its bond rating for Delek Real Estate Ltd. (TASE: DLKR) by six levels to CCC, the Yitzhak Tshuva-controlled company has renewed efforts to sell properties. Subsidiary Delek Global Real Estate Ltd. yesterday sold its 35.5% holding in Stonecutter Court in London for ₤91 million (NIS 534 million).
Delek Real Estate will use all the proceeds to reduce its loans taken to buy the property. The sale is due to be completed within a week.
Delek Real Estate's consolidated debt is NIS 20 billion, mostly non-recourse loans from foreign banks. The company also owes Israeli bondholders NIS 2 billion, of which NIS 220 million is scheduled to be repaid in May and a further NIS 300 million in September. Maalot doubts the company's ability to meet the upcoming bond payments, which "are not certain and largely depend on sales due to be completed within a very short time."
Delek Real Estate's share price fell 0.7% in morning trading today to NIS 0.75, after falling 4.6% yesterday, giving a market cap of NIS 295 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 7, 2011
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