Electra Real Estate Ltd. (TASE:ELCRE) is implementing the fire-sale of its Canadian property portfolio, announced in June, with the sale of a light industrial and office building in Montreal for C$18.5 million (NIS 63 million). The sale will be closed in early 2014, subject to meeting certain conditions.
Electra Real Estate will report free cash flow from the sale, after deducting the loan on the property, of C$6 million (NIS 21 million), and an accounting loss of C$2 million (NIS 6.5 million). The company bought the 60,000-square meter building for C$11.5 million in September 2004, and has previously reported profits on it.
Electra Real Estate has been selling off properties, including its Canadian portfolio, which has a value of NIS 600 million, because of the company's financial problems. In the financial report for the second quarter, the company's auditors pointed noted that its liabilities exceeded its current assets by NIS 422 million. The company's solo cash and cash equivalents totaled NIS 70 million at the end of June, and its current liabilities totaled NIS 953 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 16, 2013
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