Saturday, October 27, 2007

Jelmoli Cancels £1.4 Billion Sale Leaseback of 88 Retail Stores in Switzerland

Property Week - October 25, 2007

Delek Global Real Estate, a London-listed company with Israeli investor Igal Ahouvi, has pulled out of the £1.4bn purchase of Swiss department store Jelmoli’s property portfolio because of the turmoil in the financial markets.

In a statement to the LSE this morning Israel-based Delek said the price of the portfolio had not been adjusted to reflect the uncertainty in the global market. It has asked Jelmoli to drop the price to £1.27bn to £1.35bn in order to complete the deal – which was meant to sign on October 1.

The deal, comprising of 88 stores let to the Swiss retailer, would have been the largest ever portfolio sale in Switzerland with rent rolls around £47m a year increasing to around £75m in 2009 when the developments under way are completed. Sphere: Related Content

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