Elco Holdings' subsidiary Electra announced today that its fully-owned subsidiary, Electra Real Estate, is negotiating to buy a 90% stake in a firm that invests in Canadian rent-generating properties.

The target firm will be buying three buildings in central Montreal for C$47 million, about NIS 126 million.

The Canadian government has a ten-year lease for one of the buildings. The other two have been rented out to different tenants for varying periods of time.

The rent generated by the three buildings comes to about NIS 22 million a year. After management and maintenance fees, net income is closer to NIS 13.2 million.

Insofar as is known the deal is scheduled to be finalized during mid-January.

This isn't Electra Real Estate's first venture overseas. Through another subsidiary it owns nine commercial buildings in England.

The Elco group is controlled by businessman Gershon Salkind. Elco and Electra are listed on the Tel Aviv Stock Exchange.