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Electra Real Estate sells its rights to an office building in Chicago for 403 NIS million

 

The property was purchased in 2006 for $91.5 million and currently sold for $112.5 million - Electra Real Estate’s stake in the property is 47% and the surplus cash flow to the company from the deal will total NIS 54 million

 

28/07/2013, 10:22

 

Electra Real Estate, under the management of Shai Weinberg, reported the sale of another property, which will yield it significant surplus cash flow.  An affiliate owned by Electra Real Estate (47%) and by its partner, the Harbor Group, signed an agreement for the sale of an office building in Chicago, U.S. for NIS 403 million (approximately $112.5 million).  Electra Real Estate’s stake will total NIS 189.4 million ($52.9 million), and the cash flow surplus to the company will total NIS 54 million ($15 million) upon completion of the deal.  This cash flow is after the deduction of the bank loan and the costs involved in executing the deal. 

 

The deal will be executed based on a value similar to the book value of the property sold; consequently, it won’t have a substantial effect on the company’s statement of operation.  The property sold is an office building with a total area of 48 thousand square meters, which was purchased by Electra Real Estate and its partners in September 2006 for $91.5 million.  Electra Real Estate estimates that the completion of the deal will be completed in September 2013.

 

This deal will join another sale reported by the company at the beginning of the month and relates to properties in Switzerland.  The company reported that a foreign corporation, which owns 50% of the rights to three properties in the cities of Biel and Lucerne, signed an agreement for the sale of properties for NIS 113 million (29.6 million Swiss francs).

 

In addition, Electra Real Estate announced last month that it intends to take advantage of the boom in the Canadian market and to sell all of its properties in Canada, valued at NIS 600 million in total.  This deal will yield free cash flow for the company totaling NIS 25 million (approximately 6.5 million Swiss francs).

 

In addition, Electra Real Estate announced last month that it intends to take advantage of the boom in the Canadian market and to sell all of its properties in Canada, valued at NIS 600 million in total.

 

Shai Weinberg, CEO of Electra Real Estate said today:  “Electra Real Estate continues to work according to its strategic plan of selling its properties in deals which yield high cash flows.  We will continue to work toward implementing our strategy to sell properties that have exhausted their improvement potential, with an emphasis on our plan to sell all of the properties in Canada, which is expected to significantly help to improve the company’s liquidity and its financial relations.  Concurrently, we are working toward improving our properties, which should be developed in order to create a future value for the company.”