Delek Global Real Estate is a partner in a portfolio of 16 Hilton hotels in the UK.
Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) subsidiary Delek Global Real Estate Ltd. has completed the refinancing of its bank loans for the acquisition of its stake in a portfolio of 16 Hilton hotels in the UK.
In the third quarter of 2010, Delek Real Estate wrote off Delek Global Real Estate's investment in the foreign trust through which it owns 17% of the UK Hilton hotels portfolio. Today's refinancing should result in a ₤4 million upward revaluation of the portfolio by Delek Global Real Estate.
Under the refinancing deal with the bank syndicate, the owners of the UK Hilton hotels portfolio will inject ₤6.7 million into it, of which Delek Global Real Estate's share is ₤1.2 million. The debt to the syndicate will be reduced by ₤66 million from ₤358 million to ₤292 million. The company's partners in the Hilton hotels portfolio include Igal Ahouvi's Blenheim Property Group Ltd.
Delek Real Estate's share price rose 7.5% in morning trading to NIS 0.76, giving a market cap of NIS 275 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 27, 2011
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