Adgar to sell Canada property for NIS 180M

Acquirer is Canadian pension fund. According to company's statement, deal will yield neither substantial loss nor gain

Mishel Udi, Calcalist|Published: 08.28.11 , 15:38

Adgar Investments & Development under the control of the Schneidman family is on its way to selling part of its Canadian holdings.

The company announced Sunday that its full subsidiary Adgar Trust is negotiating with a Canadian financial body for the sale of 25% of the corporation's rights over most of its property for CAD 50 million (Some NIS 180 million).

Furthermore, the acquirer will assume a relative share of the corporation's liabilities towards financing bodies as per the acquired property. The company estimates that if negotiations result in a binding agreement, it is not expected to realize nether an essential gain nor loss.

Calcalist revealed as early as a month ago that negotiations were underway with a major Canadian pension fund.

As of the end of 2010, Adgar Trust holds 15 properties in Canada – 14 in Toronto and one in Montreal. Its most substantial holding is a Toronto office building worth NIS 123 million ($34 million) in the company books.

The income producing real estate held by Adgar Trust amounts to an overall 150,000 square meters (1,615,000 square feet); at the end of 2010 its real estate holdings were worth NIS 1.4 billion ($390 million).

The company's net operating income from its Canadian holdings was NIS 94.5 million ($26 million) last year which constitutes 55% of Adgar Investment's overall NOI.

The reevaluation of the company's Canadian holdings yielded a net gain of NIS 12 million ($3 million) in 2010. In the same year, average rent was CAD 15.3 per square meters a month.

Click here to read this report in Hebrew