Property and Building bought the Barney's building in 2011 for $122 million, and has made an 89% return on investment.
Property and Building Ltd. (TASE: PTBL), a unit of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, has sold the Barney's building in Chicago to a US real estate company for $154 million. Property and Building will not report a profit or loss on the sale, because the sale price reflects the fair value of the property in the company's books.
The sale is subject to certain conditions, the most important of which is the consent of the lender bank to transfer the loan on the property from Property and Building to the buyer. The sale is due to be closed within 60 days.
Property and Building bought the Barney's building in March 2011 for $122 million - $42 million in equity and $80 million in a long-term loan. The company will make a cash flow of $68.5 million on the sale, in addition to the surplus cash flow of $10.7 million made over the past two years. It has made a cumulative gross profit of $8 million on the property for an 89% return on investment in two years.
Published by Globes [online], Israel business news - www.globes-online.com - on June 13, 2013
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