News Column

French hotel family buys Tel Aviv's Sea One tower

June 18, 2014

By Aviv Levy, Globes, Tel Aviv, Israel

June 18--Electra Real Estate Ltd. (TASE:ELCRE) and Oranim Ltd. have closed the sale of the Sea One high-rise project on Tel Aviv's seafront to the French Amouyal family, which operates hotels, for NIS 370 million. They paid the buyer NIS 16 million in compensation for transaction costs, which Electra Real Estate will report in its financial statement.

The two companies owned the project on Hayarkon Street in equal shares. Electra Real Estate will report NIS 98 million in cash flow from the sale, NIS 88 million of which it will use to repay the seller's loan it gave the buyer.

The Sea One project includes a 230-room hotel operated by Isrotel Ltd. (TASE: ISRO) under the Royal Beach brand, and residential tower with 57 apartments. Oligarchs Valery Kogan and Alexander Mashkevich bought penthouses in it for NIS 110 million and NIS 112 million, respectively. The Amouyal family will also but the two remaining apartments for sale in the project.

Earlier this month, Electra Real Estate, a subsidiary of Elco Holdings Ltd. (TASE: ELCO), sold land in Montreal, on which it will report cash flow of NIS 15 million. The financially troubled company's current liabilities exceed its assets: repayments through the end of the year are projected at NIS 217 million, compared with cash flow from the sale of assets of NIS 248 million.


(c)2014 the Globes (Tel Aviv, Israel)

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Source: Globes (Tel Aviv)

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