Electra Real Estate has sold the Midtown project to a sister company

Electra Real Estate has sold Electra its holdings in the project (12.5%) for 42 million shekels - Electra Real Estate will receive about 40% of its share in dividends to be distributed

08.03.17 | Globes

Electra Real Estate today (Wednesday) sold its holdings in the Midtown project to its sister company. Electra Real Estate has a 12.5% share in the project and will receive approximately 42 million shekels on the deal. Electra Real Estate will in addition receive 43% of the dividends of the sold part of the project.The transaction, which is an interested parties’ transaction, was approved at the general meeting by a majority of 99.4%.

Gil Rushinek, CEO of Electra Real Estate: “We are pleased about the closing of the transaction to sell our share in the Tel Aviv Midtown project, which constitutes another milestone in implementation of the company’s strategic plan, approved early in 2016, to focus on multifamily portfolios in the United States, which the company is to manage independently. The company will continue taking steps to sell assets that are outside the remit of this strategy, while also continuing to invest in the acquisition of multifamily portfolios in the US.”

Early in 2016, Electra Real Estate announced the rolling out of a new strategy, under which it decided to focus its operations on multifamily properties in the US. During 2016 Electra Real Estate acquired a portfolio of approximately 6,900 residential units from its parent company, Elco. In addition to the acquisition deal, it also carried out additional acquisitions together with partners, and the company now holds a total portfolio comprising approximately 13,850 housing units, at a total investment of about 1.4 billion dollars. Closing of the Midtown deal constitutes another milestone in the strategy that, among others, includes the sale of assets that are not a natural fit with the company’s core business.

Adv. Assaf Englard of law firm Hamburger Evron & Co., represented Leumi and Mizrahi, which are financing the project, in arranging transfer of all the collateral.