Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has sold its 45% stake in Jean Coutu portfolio of 30 malls in Canada, held through Delek Global Real Estate plc for C$119 million (NIS 418 million). The company did not disclose the name of the buyer.
The 30 shopping centers in Quebec and Ontario are anchored by the Jean Coutu Group Inc. (TSX: PCJ-A; JCOUF.PK) drugstore chain.
The balance of the loan on the portfolio is C$76.4 million (NIS 268 million).
In May, Delek Global Real Estate sold the Bell Tower in Montreal for C$281 million (NIS 1 billion). In January, it sold office building Zurich, Switzerland, for CHF 114.5 million (NIS 422 million), in November 2010, it sold its 75% stake in UK motorway services company Roadchef Ltd. for ₤86.25 million (NIS 500 million) to sister company Delek Group Ltd. (TASE: DLEKG), and in March 2010, it sold its 85% stake in Place Elginresidential project in Montreal for C$47.5 million (NIS 172 million).
Since Eran Meital took over as Delek Real Estate CEO in 2009, he has been selling off the company's foreign properties. Sales to date total NIS 2.5 billion, however the company's consolidated debt is NIS 20 billion. The company has to repay NIS 1.2 billion in bonds by November 2012 and NIS 600 million to the banks. The company's ability to repay is exacerbated by its NIS 4.4 billion working capital deficit and NIS 1 billion shareholders' equity deficit.
Last week, the Royal Bank of Scotland foreclosed on the ₤1 billion Marriott hotels portfolio in the UK, in which Delek Real Estate owns 17%.
Delek Real Estate's share price fell 0.9% in morning trading today to NIS 0.323, giving a market cap of NIS 126 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 19, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011