Delek, Electra sell Telekom buildings [pg. 15]

Delek Real Estate, controlled by Yitzhak Tshuva's Delek Group, and Electra Real Estate, part of Gershon Salkind's business ventures, sold off property that had been leased to Deutsche Telekom in a deal worth NIS 1.87 billion, or €334 million. Delek Belron International, Delek Real Estate's foreign subsidiary, and Electra Real Estate's foreign subsidiary each owned 40 percent of the rights to the seven buildings in Germany, which they had bought in April 2005 for NIS 1.58b. or €282m, in one of the largest real estate deals executed by Israeli companies. The two companies are each expected to post a pre-tax capital gain of NIS 90m. on the sale, of which NIS 37m. already was posted in the fourth quarter of 2005 as a result of the revaluation of the German assets at NIS 1.7b. or €303m. Delek Belron and the Electra Real Estate subsidiary each posted a profit of NIS 53m. on the deal and the two companies noted that they each would benefit from a surplus cash flow of NIS 101m. or €18m. Separately, Alrov Properties & Lodgings Ltd. announced on Sunday that the company has sold an office building in France through its majority-owned subsidiary Property Investment Holdings in a deal worth NIS 24m. Alrov Properties & Lodgings is expected to record an after-tax capital gain of NIS 5.7m. on closure of the deal, which was expected in October, at the latest. Furthermore, the company said it was holding negotiations to sell a second property asset in France on which Alrov expects to post a capital gain of NIS 21m., after-tax.