Avi Levy, Chairman of Delek Israel (pexels photo, PR)
Lahav El Ar, controlled by businessman Avi Levy, is selling its stake in City Tower in Ramat Gan. The transaction is carried out at a yield of 22% and will yield Lehav a positive cash flow of NIS 12.5 million.
Lahav El Ar is a 50% partner in a company that owns 4,000 square meters in the City Tower in Ramat Gan, one of the first discoverers in Israel to even win a popular TV series that bore his name. NIS 43 million, which means a profit of almost NIS 20 million over a period of 5 years.
More in-
The joint company that sells the property in City Tower will repay a loan of NIS 25.6 million from the sale money, so that after the sale and repayment of the loan, a little more than NIS 37 million will remain in the coffers. Lahav El Ar’s share in this cash fund stands at NIS 12.4 million.
The transaction should not affect Lahav El R’s reports, certainly not materially due to the fact that over the years the company has valued this holding to such an extent that the revaluation reflects its true value and therefore no profit will be generated beyond the significant cash flow it will generate.
Lahav El R ended the first quarter of the year with revenues of NIS 2.8 million and a net profit of NIS 3.7 million (the profit was high due to the revaluations made by the company). Lahav’s cash flow in the first quarter of the year was negative by NIS 4.2 million and its shareholders’ equity amounted to NIS 762.7 million.
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