Delek Glbl Share Discussion Threads

[kenny] 25/2/2011 18:38

From today's Property Week. Not to sure how it effects DGRE as they have written down the investment to nil, guess it cannot go any lower, only higher!
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Bank to take 25% stake in Ahouvi, Delek and Avestus' £1.1bn Marriott assets

The Royal Bank of Scotland is close to taking a 25% equity stake in a hotel portfolio it sold for £1.1bn at the top of the market. The purchase is part of the restructuring of one of the largest individual loans underwritten by the bank during the downturn.

A joint venture between RBS and Lehman Brothers is about to finalise the terms of a debt-for-equity swap with the owners of a portfolio of 42 UK hotels managed by Marriott. The portfolio was bought in 2007 by a consortium comprised of Israeli investors Igal Ahouvi and Delek Global Real Estate, and Irish investment manager Quinlan Private, now Avestus Capital Partners.

The sale means RBS and Lehman will agree to write off around £50m of debt in exchange for a 25% stake in the equity of the portfolio. The other owners are also likely to put in equity and retain ownership stakes.

When the consortium bought the 47-hotel portfolio from RBS, Quinlan Private owned 44%, Ahouvi 39% and Delek Global Real Estate 17%. They invested a total of £220m of equity.

RBS provided an £850m loan to fund the transaction, which was then widely syndicated to different banks, among them Lehman Brothers. The facility matures in 2014 and has an interest rate of 6.16%. Five of the hotels were sold in 2007 for £50m, and the money used to pay down debt.

A drop in the value of the portfolio meant that the loan's covenants were stretched, which led to RBS instituting the debt-for-equity swap. The sale will mean the level of the debt secured against the portfolio will be reduced to around £750m.

The RBS and Lehman consortium is the only lender undertaking a debt-for-equity swap. Quinlan, Ahouvi and Delek had planned to sell their stake in the portfolio, along with a £500m portfolio of Hilton hotels in which Delek also owned a stake, through the creation of a £1.6bn hotel REIT in late 2007.

The assets, including the London Heathrow Marriott hotel (pictured), were bought by RBS through the £965m takeover in April 2006 of Condor, a company jointly owned by Whitbread and Marriott International.

All parties declined to comment.

Read more:
propertyweek.com

[tiltonboy] 11/2/2011 11:11

grolfram,

Many thanks.

[grollfam] 11/2/2011 11:07

Acq. cost was 88.5m, DGRE share is 35.5% Initial Investment was 8m, but might have been returned on a re-financing......

[tiltonboy] 11/2/2011 10:59

Be interesting to see what it's in the books at, but another (hopefully) welcome sale. Do I smell another dividend on the way?

[grollfam] 11/2/2011 10:02

ANOTHER DISPOSAL...............................


Hines and LaSalle Investment Management are close to buying £120m of City of London property from a joint venture between Irish and Israeli investors.

Hines Global REIT, a property fund managed by Hines, has placed the 152,827 sq ft Stonecutter Court on Farringdon Street under offer for around £95m.

The seller is a joint venture between Irish consortium Brookdale Partners and Delek Global Real Estate.

The price would represent a yield of around 6.5%.

The property is let to accountancy firm Deloitte until 2019. It is understood that Hines would plan to hold the property in the immediate term and refurbish and relet it once the lease has expired.

[kenny] 21/1/2011 16:52

May even be able to afford to stuff the turkey!!

[grollfam] 21/1/2011 16:03

BIG TURKEY this chrismas.................

[tiltonboy] 21/1/2011 15:56

Dividend received today.

[horse19] 17/1/2011 10:46

Are the 2 properties sold in Finland, announced a couple of days ago,in addition to that announced on 2nd Jan? Just trying to estimate next potential divi.

[kenny] 16/1/2011 12:08

Delek Real Estate sells Zurich office building
Delek Global Real Estate bought the property, which is leased to Credit Suisse, in August 2005.
16 January 11 11:46, Globes' correspondentDelek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, has sold an office building Zurich, Switzerland, for CHF 114.5 million (NIS 422 million). The property was sold by Delek Global Real Estate plc, which handles Delek Real Estate's properties in Western Europe and Canada.
Delek Real Estate books the property at close to the sale price, and will report a capital loss of CHF 4 million (NIS 15 million), partly because of deferred expenses and transaction costs. The company will use part of the proceeds to repay the outstanding CHF 76 million bank debt on the property. Net cash flow to Delek Global Real Estate on the sale will be CHF 34 million (NIS 125 million).
Delek Global Real Estate bought the property in August 2005. It is leased to Credit Suisse Group AG (NYSE: CS; SWX: CSGN; XETRA: CSGZ). The building's value jumped considerably as a result of Credit Suisse renewing its lease. Credit Suisse renewed the lease for ten years through October 2022. Rent is CHF 6 million (NIS 22.1 million a year), giving a return on investment of 5.2%.
Delek Real Estate's share price was unchanged in morning trading at NIS 1.34, giving a market cap of NIS 406 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 16, 2011.

[grollfam] 15/1/2011 10:47

thanks Kenny....this is after the special divi of nearly 8p & is reflects a profit of about 13 mil shekels(2,3 mil pounds).....so more divi,s ahead....

[kenny] 15/1/2011 10:39

Think this may be the sale of two further properties in Finland:

Sveafastigheter2011-01-14 07:22:50
Sveafastigheter acquires two office properties in Helsinki
Sveafastigheter's third fund, Sveafastigheter Fund III, completes its first acquisition in Finland through the acquisition of two office properties in Helsinki inner city together with HGR. The transaction was financed by Aareal Bank and Helaba.
Sveafastigheter Fund III ("Sveafastigheter") has together with HGR Property Partners ("HGR") completed the acquisition of two office properties at Elimäenkatu 23 and Elimäenkatu 25-27 in Vallila, Helsinki. The properties are acquired from Delek Global Real Estate and the transaction is financed by two German banks Aareal Bank AG and Landesbank Hessen-Thüringen Girozentrale ("Helaba"), with Aareal Bank as the Agent bank. The purchase price is not disclosed.

Both properties were leased to TeliaSonera through long-term lease agreements, however, these agreements have mainly expired. Both properties have been thoroughly renovated and extended between 2000 and 2002 and are technically in very good condition. The total leasable area is 19,500 sqm. Sveafastigheter's and HGR's business plan is to lease the properties to new large anchor tenants.

- We are convinced that we can attract high-quality tenants to these assets. The properties are modern and are of a high standard as required by headquarter users. The location is excellent in the inner city of Helsinki and has good transport links and parking facilities. The expertise and experience of HGR makes them the best possible partner to manage and lease these two outstanding assets, says Patrick Gylling, partner at Sveafastigheter.

[kenny] 09/1/2011 12:26

Following on my post above, see my analisis of net rental income for the nine months to 30.09.10 which, excluding adjustments, came to 9.43p per share. So for the year the income may be about 12p - allowing for a reduction in net recurring income due to property sales which is partly compensated for by the RPI increase in rents on the NCP car parks.

Net Rental Income 9 months to 30.09.10

Rental Income 124,912
Finanace income 382
Other income 214
Income-Sub-total 125,508
Expenses:
Operating 18,761
General & Admin. 6,143
Other 6,354
Finiance costs 69,250
Expenses Sub-total 100,508

Net Income 25,000

Income per share 9.43p

[kenny] 06/1/2011 08:38

tiltonboy- DGRE has net rental income of about 10.5p per annum before property and derivative writedowns. Therefore, it depends how you view the dividends. Agreed they are being financed by property sales but that might only be because net rental income is being used in debt repayments and other transactions such as buying out the banks profit share entitlement on NCP properties.

[grollfam] 06/1/2011 05:16

far better than Tsuva taking the money as management fees..........

[tiltonboy] 06/1/2011 04:41

Might seem like dividends, but are really repayments of capital. Not that I'm moaning about getting my cash back, albeit having to pay higher rate tax on one of my holdings!!!

[flying pig] 04/1/2011 19:33

All contributions are very welcome. What a decent one as well!
Glass of fizz awaits once in SIPP!

[kenny] 04/1/2011 15:43

Excellent news albeit the dividend is conditional on receipt of funds - presumably from a property sale.

A very big dividend indeed, about what I was expecting to be paid in total through 2011. I should have bought the extra large turkey at Xmas!!

[grollfam] 04/1/2011 15:07

BIG DIVIDEND.......



Delek Global Real Estate plc

("DGRE" or the "Company")



Proposed Interim Dividend

The board of DGRE announces that it resolved in its meeting held earlier today (4th January 2011) to declare a conditional interim dividend of 7.93 pence per DGRE share. The dividend is payable to shareholders on the register at 4th January 2011, and is payable on 21st January 2011 (or as soon as practicable thereafter), but in any event is conditional upon receipt of certain funds by the Company no later than 18th January 2011 (so that if such funds are not received by that date, this dividend distribution shall not be payable).

[grollfam] 02/1/2011 20:43

DELEK GLOBAL SELLS FINLAND PROPERTY.......


(DLKR IT): The real estate developer said its unit Delek Global Real Estate has agreed to sell to a third-party its holdings in a unit that owns a property in Finland. The company expects to make an estimated profit of 13 million shekels. Delek fell 0.1 percent to 1.359 shekels.

[grollfam] 27/12/2010 16:20

WHATS LEFT IN DELEK REAL ESTATE ?????



Tshuva sells Vitania stake to clear Phoenix debt
Delek Real Estate's selloff has totaled NIS 1.6 billion in the past six months alone.
Aviv Levy 27 Dec 10 17:21


Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) yesterday sold its 46% holding in income-producing real estate company Vitania Ltd. (TASE:VTNA.B1) for NIS 164 million. Delek Real Estate books the holding at NIS 170 million.
Delek Real Estate will use the proceeds to repay its NIS 80 million debt to Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5), which Tshuva controls through Delek Group Ltd. (TASE: DLEKG). The company will use the rest of the proceeds to repay bank debts.

Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) and Flying Cargo Ltd. bought 40% of Vitania in equal shares for NIS 71 million each. Other Vitania shareholders bought the other 6%.

Vitania owns 90,000 square meters of properties in Israel and abroad and has building rights for an additional 136,000 square meters. Its shareholders equity at the end of September was NIS 336 million, and it posted a NIS 12 million loss in January-September.

Since July, Delek Real Estate has sold properties in Israel and Europe for NIS 1.6 billion altogether. Sales include properties in Switzerland, Germany, and the UK, as well as UK motorway services company Roadchef Ltd. (sold to Delek Group), and earlier this week, the sale of half of the Bezalel Market project in Tel Aviv.

Published by Globes [online], Israel business news - www.globes-online.com - on December 27, 2010

[kenny] 01/12/2010 20:46

The not so good news is that the quarterly accounts to 30.09.10 for DGRE which are out today show NAV is down to 117p albeit cash is up marginally to £43m even after accounting for the first dividend, of three, paid during 2010.

The hit on NAV is mostly:
a) Further property write downs in the quarter of £31m, and
b) Further provision of £21m on financial instruments.

The liability on "derivative financial instruments" is now the very large total of £246m in the balance sheet. One hopes that if the hedges are held to maturity, most of this potential cost will disappear - which would be rather handy as it represents about 92p per share of potential value. However, that in turn assumes that the NCP car parks are retained and not sold. The swaps on the NCP loans are probably the decisive factor leading to the conclusion that the NCP car parks will never be sold – or certainly not until interest rates rise to such a level that the swaps are "in the money".

In summary, however, the new management seem to be doing a good job in selling what they can. Those properties that would trigger repayment of a swap will have to be retained for maybe some years or decades unless they can find a solution. None of the property companies I follow have managed to find a solution to the swaps they took out.

[horse19] 01/12/2010 17:10

More of the same.Looks like, if approved, they are going to sell their properties in Canada held through DGRE and 'other assets'.Could be more divis to come......

Delek Real Estate offers equity to bondholders
At the same time, the company will sell all its assets in Canada and Israel.
1 December 10 14:37, Avi ShaulyThe aggressive sell-off of assets by Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, has not solved the company's huge cash problem, so Tshuva is now offering a settlement to the company's bondholders. The company owes its bondholders NIS 2.3 billion.
Sources inform ''Globes'' that Delek Real Estate is offering to convert bonds into shares at par value. The conversions will be made in several steps, each amounting to several hundred million shekels. At the same time, the company will sell all its assets in Canada and Israel.

Delek Real Estate owns income-producing properties in North America and Western Europe through Delek Global Real Estate plc, and residential properties in Israel through Elad Israel Residences Ltd.

Delek Real Estate's revenue rose 50% to NIS 629.1 million for the third quarter from NIS 417.2 million for the corresponding quarter. Net loss attributable to shareholders narrowed sharply to NIS 138.1 million for the third quarter from NIS 449.1 million for the corresponding quarter.

Delek Real Estate CEO Eran Meital said, "Delek Real Estate has prepared an updated strategic plan, whose success the company's board of directors and management believe will help strengthen the financial position and enable it to review business development. Under this plan, we intend to try to sell properties in Canada that have fulfilled their betterment potential, and to sell other assets. We will also try to raise debt, and to give the right to convert bonds at adjusted values into company shares. We believe that the success of this plan will greatly improve the company's financial position."

Delek Real Estate's share price fell 5.2% by mid-afternoon to NIS 1.37, giving a market cap of NIS 430 million.

[grollfam] 01/12/2010 16:45

Delek Real Estate Falls to 6-Month Low on Strategy


By Ronit Goodman - Dec 1, 2010 Delek Real Estate Ltd. dropped to the lowest in more than six months after the Israeli property developer said it plans to sell bonds and offer shares to meet debt obligations.

The shares retreated 5 percent to 1.376 shekels, the lowest level since May 25, giving the company a market value of 415 million shekels ($113 million).

Delek plans to raise 300 million shekels by selling shares to current holders and offer 470 million shekels of bonds in the next two years. The company also seeks to sell its stake in Elad Israel Residences Ltd.

"Investors are concerned by Delek Real Estate's debt situation and the uncertainty regarding the plan to overcome it," said Shay Lipman, an analyst at Tel Aviv-based IBI. Delek has debt of 587 million shekels maturing in 2012 and 1.14 billion shekels in 2019, according to data compiled by Bloomberg.

Separately, the company said its third-quarter loss narrowed to 138 million shekels from 449 million shekels.

To contact the reporter on this story: Ronit Goodman in Tel Aviv at [e-mail]

[kenny] 28/11/2010 12:17

Another property sale. The last individual valuation available is rather historic; £80.310m at 31.12.08.
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Delek Real Estate sells another London property
In the past year, Delek Real Estate has sold properties for a total of NIS 1.5 billion.
Globes' correspondent 28 Nov 10 12:02

Delek Real Estate Ltd. (TASE: DLKR, controlled by Yitzhak Tshuva, is continuing the sell-off of properties. The company today announced that subsidiary Delek Global Real Estate plc, in which it owns an 85% stake, has sold Farrington Court in London, to undisclosed buyers.
Delek Global Real Estate owned 35.5% of Farrington Court, a 15,860-square meter office building located at 20 Farrington Road, in central London. The property was sold at a value of ₤69 million (NIS 398 million).

Delek Real Estate said that all the proceeds from the sale would be used to repay loans taken to buy the property, which the company books at a negligible value. The sale is due to be closed in July 2011.

In the past year, Delek Real Estate has sold properties for a total of NIS 1.5 billion, but the company is still in dire financial straits. It had a shareholders' equity deficit of NIS 1 billion and NIS 20 billion in liabilities at the end of June 2010.

Delek Real Estate's share price rose 1.3% in morning trading to NIS 1.51, giving a market cap of NIS 449 million.

Published by Globes [online], Israel business news - www.globes-online.com - on November 28, 2010