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Delek Real Estate seeks financing for acquisition of Montreal's Bell Tower

Approached several banks, including Bank Leumi, in request for funds

Delek Group (TASE: DLEKG ) owned Delek Real Estate is negotiating with several banks, three Canadian, one German and two Israeli banks, one of which is Bank Leumi for financing of the October 2001 acquisition by its subsidiary Delek-Belron International of the Montreal, Canada Bell Tower building.

Delek-Belron bought 110,000 meter Bell Tower, which was leased to Bell Canada, for $131 million. Sources in Delek Real Estate told TheMarker the acquisition was made with the company's own capital and that it was now negotiating with several local and overseas organizations to provide 80% to 85% of the financing for the deal.

The 40-story building was leased to Bell Canada until 2018 for monthly rent of $17.5 per square meter, or $22 million a year.

Delek Real Estate's income, expenses deducted, is $16 million a year, reflecting a 12.5% annual yield on the asset.

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Until April 2001 Delek Belron was a publicly traded company on the Tel Aviv Stock Exchange.

In the beginning of April controlling shareholder in Delek, Yitzhak Tshuva delisted the company from public trading.