AMSTERDAM (Thomson Financial) - Kardan NV said it is to merge its Israeli real estate unit, Kardan Real Estate, with Delek Real Estate, creating one of the largest residential property developers in Israel.The merged company will hold a land bank for approximately 7,000 housing units of which 1,600 are already under construction, the company said.
DMR Properties (1995) Ltd., bought a five dunam (1.25-acre) lot on Hamasger Street in Tel Aviv for NIS 64 million. Vitania and DMR will own the lot in equal shares. The lot is zoned for an 18,000-square meter gross space office building. The companies plan to demolish the buildings occupying the site and build the office building. Delek Auto's board has authorized DMR to extend to Vitania a NIS 32 million five-year loan at Prime + 1% interest to buy its share of the lot.
Delek Real Estate added that, if the deal is closed, it expects to report a net capital gain of NIS 40-60 million. The net capital gain will total NIS 70-100 million including a 40 percent deferred gain, assuming an equal value for Dankner Investments and Kardan Real Estate.A deal to sell Dankner Investments to Azorim Investment, Development and Construction Ltd. (TASE: AZRM) last year was called off.
Delek Real Estate Ltd., the Israeli property company that bought 12 Frankfurt-area supermarkets last month, plans to raise 800 million shekels ($210 million) in a bond sale to refinance existing debt and fund new investments. The securities have been rated A+/stable, Ma'alot-The Israel Securities Rating Co. said in an e-mailed report on Jan. 4. About 340 million shekels will be used to repay loans and 460 million shekels to fund acquisitions, Ma'alot said.Delek plans to acquire income-producing real estate leased to quality tenants, rather than develop its own.
According to the negotiations, Delek unit Dankner Investments, which covers most of Delek's residential activity in Israel, would be sold to or merged with Kardan's real estate unit, Delek said in a statement to the Tel Aviv Stock Exchange.The conditions of the deal have not yet been decided and there is no certainty the negotiations will lead to an agreement, Delek said.
Delek Belron International published its financial report last week. Delek Real Estate posted NIS 1.12 billion revenue for the second quarter, triple the NIS 342.5 million posted for the corresponding quarter of 2006. However, net profit fell 35% to NIS 91.5 million because of the valuation of properties for the IPO of Delek Global in April.The increase in Delek Real Estate’s revenue was partly the result of the consolidation of Roadchef in the UK with properties acquired early in the second quarter. Cash flow from current operations totaled NIS 156 million during the first half of 2007, of which NIS 113 million was during the second quarter.
The company, run by Ilik Rozenski, says it's paying NIS 213 million in net terms for Sahar, which owns 44,000 square meters in rent-generating assets, mostly in Tel Aviv. It also owns some buildings in Netanya and Haifa, as well as holdings in some companies that own property in Germany.
Israel's Delek Real Estate Ltd. on Tuesday updated the gain it expects to post from the initial public offering of its unit Delek Global Real Estate on London's Alternative Investment Market .
Real estate developer Yigal Ahuvi, who was Delek's partner in some projects and sold Delek Real Estate his rights to joint properties before the offering, will now, after the offering, receive 91 million pounds sterling..Read More...
Delek Real Estate Ltd. (TASE: DLKR) is negotiating to buy 33-40% of the high-tech industrial park in Hod Hasharon at a value of $50 million from Ashtrom Properties Ltd. (TASE:ASPR) and Mivtach Shamir Holdings Ltd. (TASE:MISH). The return on investment at this price will be 8.5%.
