Sources inform ''Globes'' that the Ministry of Finance will today present another alternative for struggling Israel Electric Corporation (IEC) (TASE: ELEC.B22) to find cash: sell its real estate. IEC has billions of shekels in assets. In addition to its many sites zoned for substations and other operational facilities, it owns scores of non-operational properties, such as offices and open spaces that can be developed and sold.
Some of IEC's properties are located in highly attractive locations. Sites in Tel Aviv include a 1,000-dunam (250-acre) site at the Reading Power Station, which is completely unused, and whose proximity to the Tel Aviv Port has made it a real estate pearl potentially worth at least hundreds of millions of shekels. It also owns a lot on Kaminsky Street, occupied by offices, a garage, and technical center; two office buildings - the Ashdar Building and Giborei Israel building - on Yigal Allon Street; and a lot on Anielewicz Street, which includes a substation.
IEC's headquarters sprawl along one side of Hahashmal Street (Electricity Street). There is already an approved plan to build an office tower on this site.
Outside of Tel Aviv, IEC's properties include a huge lot once occupied by the Rogozin factory. The purchase of the land was at the center of the bribery scandal, in which the company was suspected of bribing Judge (emeritus) Dan Cohen.
In its financial report for 2010, IEC reported that, in 2000, it received a valuation of properties handed to it without compensation at NIS 7 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on March 27, 2012
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